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Forex Lingo

The document defines various terms related to currency trading including indicators that track daily price ranges, types of trades, price patterns used by market makers, positions, costs associated with trading, and time periods. It provides definitions for over 50 terms in glossary format.

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Manojkumar Nair
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490 views

Forex Lingo

The document defines various terms related to currency trading including indicators that track daily price ranges, types of trades, price patterns used by market makers, positions, costs associated with trading, and time periods. It provides definitions for over 50 terms in glossary format.

Uploaded by

Manojkumar Nair
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Glossary Of Terms

ADR: an indicator that tracks average daily range of a currency.


Book a profit: closing all positions and taking a profit (you can book a loss).
Brinks trade: a type of trade that uses a timing element as part of the setup.
Candle Spike: an aggressive candle used to shift the trading zone and trigger the
stops.
Consolidation: any area where price appears to chop. In reality, market makers are
building positions.
Correction: the lowering of price.
Cross pairs: pairs comprised of majors other than the US dollar.
Dealing spread: the difference in pips, between the bid and the ask. (The cost of
doing business).
Extended stop hunt: price is extended beyond the normal 25 to 50 PIP stop hunt;
occurs when traders refuse to commit their funds.
Gap Time: the changeover between sessions in which one market maker transfers
instructions to the +oncoming dealer.
High/Low board: the board used by the market makers to track the high and low
of the day.
High/Low marker: an indicator that tracks yesterdays high and low and plots it on
today's chart
HOD: high of the day; the highest point on a chart in a 24-hour period.
Holding the level: price will consolidate in a tight range; used to accumulate
contracts.
I-LOD: initial low of the day; the low of the day that is set during Asian market
hours.
I-HOD: initial high of the day; the high of the day that is set during the Asian market
hours.
LOD: low of the day; the lowest point on a chart in a 24-hour period.
Long position: the act of buying.

M top: a type of stop hunt used to trap the traders and validate retail orders.
(Appears at the HOD).
Market maker spread: the distance between the I-HOD and the I-LOD. (Less than
50 pips is ideal).
Market maker trend: the real trend of the market, different than that of what
retail traders see and
perceive.

Market maker: the group of people that have power and influence over the
market, they have a huge equity base, control over the media, and influence in the
political arena.
Market Sentiment: a feeling or belief that the market will behave a certain way,
perpetuated by news and Geo political events, is not based on truth, and has no
bearing on how the market will actually perform.
Net change: the difference between the opening price and the current market
price.
On the board: having an open position.
Open float: the amount of equity tied up to manage your positions. (Can be
negative or positive).
Peak formation: the highest point on the chart. (Can occur intraday and intraweek).
Reset: (Trend Reset) the market maker will make a pullback to book a profit, but
needs to continue with the current trend direction to achieve the larger goal.
Rise: the increase in price.
Scratch: A trade that doesnt produce so you take what is given and close it.
Session: the time the dealers are active in their respective market. (Approximately
6 hours in duration).
Shift bar/candle: the candle used to trap the traders at the higher and lower
levels.
Short position: the act of selling.
Stop hunt: an aggressive move by the market maker to trigger the stops of all
traders.
Straight away: a trade use by the market maker to create margin call and damage
the traders account.
Swap/premium: interest charges that accrue for holding an open position past the
settlement time.(Usually 5pm NYC, but varies by dealer/broker).
TDI: (Traders Dynamic Index) an indicator developed by Dean Malone, used in
conjunction with the market maker pattern.
Time mapping: the action of matching your brokers server time to our indicators.
Trading zone: the area where it is safe to enter a trade. (Needs to be within 15 to
20 pips off of the HOD and LOD).

Trend: the slow, steady movement of price in a unidirectional swing until the
targets are achieved.
V bottom: a type of stop hunt that does not present a second leg. (Forms the LOD).
V top: a type of stop hunt that does not present a second leg. (Forms the HOD).
2007, Steve Mauro, Beat the Market Maker, Inc.

W bottom: a type of stop hunt used to trap the traders and validate retail orders.
(Appears at the LOD).

Vector: a rapid change in price, in any direction. (An anomaly on the chart).

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