At TradersArmy, we use specific terms in our LIVE Trading Rooms, Training Courses and on social media, but not everyone knows what they mean when they hear some of them for the first time. We hope you find the below glossary of terms and definitions helpful.
DMC – Daily Market Commentary, is a daily broad market recap and outlook for the upcoming trading day from a technical, fundamental and volatility perspective.Posted to the TradersArmy YouTube page and embedded on our website at TradersArmy.com.
LTR – LIVE Trading Room, (we hold 2 LIVE Trading Rooms each week for PRO Members). So, when we reference trades from the LIVE Trading Rooms, you’ll typically see it as the acronym, LTR.
BE – Breakeven, When we’re moving our initial stop, we may move it to BE after a move in our favor justifies doing so. It also refers to the net outcome of the position resulting in neither a loss or profit, simply “breakeven”
T1, T2, T3, all represent multiple Targets we may have in any given trading opportunity.
FPV – Fair Price Value Area, is referring to the period of equilibrium or “balance” in the supply/demand equation before a fast/big move out due to a sudden excess of supply or excess of demand.
FPV Supply Area, refers to an area on the chart where the supply/demand equation became strongly out of balance where supply (willing sellers) exceeded demand (willing buyers) causing price to move sharply lower .
FPV Demand Area, refers to an area on the chart where the supply/demand equation became strongly out of balance where demand (willing buyers) exceeded supply (willing sellers) causing price to move sharply higher.
Limit Style Entry, is the type of entry we use when the odds of the trade (using our scoring system)are the highest we could objectively find.Use a limit entry if the trade scores 9 or 10. Our rules for a limit entry are: The moment the willing entry price is hit, the entry is triggered at the “limit” price or better.
Confirmation Style Entry, is the type of entry we use when the odds of the trade (using our scoring system) are still acceptable but does not objectively meet the highest scores.Use a confirmation entry if the trade scores 7 or 8. Our rules for our confirmation entry are: Price needs to enter our FPV supply or demand area by at least 50% to “activate” the trade, then to enter the trade, price must leave the zone in the direction we’re expecting. If price exceeds the outer line of the FPV area before “triggering” the entry, the trade is no longer valid.
IV – Implied Volatility, referring to how over-priced, under-priced or fairly valued options are currently trading at and also dictating which options strategy we should use to maximize directional bias, time and volatility of the options.
WoW – Wick over Wick, is an area on the price chart where, in the middle of two Expanded Range Candles, you can spot a period of equilibrium (that will be found on a smaller timeframe chart) and seen as an area of equilibrium before another strong move away, suggesting there origin of a move.
