Advanced Trading Workshop

Glossary

SHORT NAME

LONG NAME

DEFINITION

NOTES
1-2-3 1-2-3 Pivot Set Pivots 1 and 2 (P1 & P2) are either the low and high pivots of a wave or the high and low pivots of that wave, and Pivot 3(P3) is the deepest retracement between P1 and P2. P1, P2 & P3 are all 2 ringed pivots.
30 min hi/lo 30 minutes high/low The highest/Lowest price made in the first 30 minutes of the day session Used as support/Resistance levels
5WM 5 Wave Move A trending move composed of the following waves:
  • Impulse wave
  • Corrective wave <.786 retracement of wave 1 (Not DB/DT)
  • Impulse wave that extends beyond wave 1
  • Corrective wave <.786 retracement of wave 3 (Not DB/DT)
  • Impulse wave that extends beyond wave 3
There are 2 types: Elliot Waves and Wedges
786RTC 786 Retracement 78.6% retracement of a wave 78.6% of a wave length
Alternate Alternate A multiple of wave height from P1 to P2 projected from P3 of a 1-2-3 pivot set Displaced Alternate is similar but can be displaced from a PD not part of the 1-2-3 pivot set.
ATR Average True Range Commonly used technical analysis tool: average of Bars’ ranges including gaps, if present. Average True Range typical settings (10,10)
ATW830 Open Gap System ATW proprietary open gap trading strategy
BB Bollinger Band Commonly used technical analysis tool
BO RT Breakout Retracement A retracement level measured not off of the full wave length, but from a breakout level (BOP) to the extreme of the wave. Usually used in a 5WM.
BOB BreakOut Bar High Breakout Bar (BOB): a bar with a low that is greater than the high of a previous bar; or Low Breakout Bar (BOB): a bar with a high that is less than the low of a previous bar. Previous bar could be multiple bars away.
BOC Breakout Confirmation Used as confirmation price level for a BO above/below the 30 min high/low Calculated on a 5 min chart: Max (ATR (10,10) of the BOB bar, 1) * .618 added or subtracted to the extreme of the BOB bar. (Formula used for ES or TF).
BOP Breakout Pivot High BOP: High pivot below current market price; or Low BOP: Low pivot above current market price.
BTTFT Back To The Future Trading Software company that provides timing analysis data mining tools
CF Confirming Factor
  • Structural Price Level
  • Prive Projection
  • Trend and Breakout Level
  • Volume Patter
  • Timing Projection
Combo Combo Zone Overlapping global and local S/R levels. Global levels are based on higher timeframes set before market open. Local levels are based on lower timeframes and based on current intra-day price action.
Confirmation Confirmation Process of finding previous waves that are very close in size to a DAlt or DAltX
CTTL Cut Through Trend Line Diagonal trend line that goes through both high and low pivots (at least one of each) Used as a CF
Daily Midpoint Daily Midpoint The point midway between the daily high and low.
DAlt Displaced Alternate A multiple of wave height from P1 to P2 displaced to and projected from third Pivot PD which may or may not be part of a 1-2-3 pivot set. Application has two main fib levels: DAlt = 100% (red) and the DAltX = 138.2% (magenta) of the original wave.
DAltX The 138.2% extension of a DAlt
DAlt Midpoint DAlt Midpoint A line half way between the DALT and the DAltX levels.
DDalt Double DAlt A DAltX of a wave overlapping a DALT of a higher degree wave. Both DAlts projected from same anchor pivot
Doji Doji A bar where the open and close are within .236 times the 10 bar ATR. Minor HPPD projection
Double Doji Double Doji Back-to-back dojis. Major HPPD projection
Dominant Pivot Dominant Pivot A significant, multi-ring pivot.
DOW Day of Week Used as a timing window
DPTL Dual Purpose Trend Line A price level at which there is at least one high pivot overlapped with at least one low pivot.
DB Double Bottom A sequence of two 9 ring low pivots on a 5 minute chart such that the second low pivot is =< the .786 retracement of the wave from the first low pivot to the intervening high pivot and >= the 1.382 expansion of the wave from the intervening high pivot to the first low pivot.
Degree Wave Degree Each higher degree wave is at least 1.382 the size of previous degree.
DT Double Top A sequence of two 9 ring high pivots on a 5 minute chart such that the second high pivot is >= the .786 retracement of the wave from the first high pivot to the intervening low pivot and =< the 1.382 expansion of the wave from the intervening low pivot to the first high pivot.
Elliot Wave Elliot Wave 5WM where W4 does not overlaps W1.
ET Extreme Tick The extreme high or low of a move Used to describe a trade where entry, stop or profit target were on the extreme tick of the move.
Expansion Expansion A multiple of wave height from P3 back to P2 projected from P3 through P2.
Extension Extension A multiple of wave height from P1 to P2 projected from P1 through P2.
EXT./EXP. Extension/Expansion An extension or expansion
Fib Fibonacci Ratio Ratio created using numbers from the Fibonacci sequence.
Fibonnaci Numbers Fibonnaci Numbers Number series generated by the following rules:
F1 = 1
F2 = 1
Fn = Fn-1 + Fn-2 		i.e. 1,1,2,3,5,8,….
Finaccaci Ratios Fibonacci Ratios Ratios derived by raising 1.618 and 2.0 to certain specific powers
Fractal Fractal An object or pattern whose parts are scaled down echoes of the whole.
GH-RTTR Graduate-Hosted Real Time Trade Room An ATW trade room hosted by Masters Course graduates
Global Zone Global support/resistance Zone SR levels based on higher timeframes (15 min and above) constructed before market open. Released each morning in the morning prep
Golden Ratio Golden Ratio 1.618 Frequently found in nature, art and human behavior.
HOD High Of Day
HPPD High Profit Potential Day A day that forms a directional and range expansion bar on the daily chart Directional meaning open on one end and close on the other end (OpenX, CloseX)
HPPD Projection Pattern HPPD Projection Pattern Pattern from previous day(s) that project HPPDs including: Doji, Double Doji, NR7, NR2-20, Double Breakout, Double Double Breakout, Mega Breakout and Double Mega Breakout.
IF# Internal Fib Number One of the Internal fib ratios used on the ATW standard fib retracements tool. e.g. 27.64% is IF1 and 38.2% is IF2
Impulse Mode Impulse Mode Generic: fast, unidirectional, high momentum price action.
Specific: unlike other ATW components, specific definition is a trader decision based on the market and timeframe.
IR Initial Resistance Initial global resistance released in morning prep as part of the global zones for the day Not always active. In those days R1 (resistance zone #1) is the first global resistance level
IRF Impulse Reversal Failure A retracement from an impulse move but not enough to constitute a reversal. It’s a reversal attempt that fails and the move to the direction of the impulse resumes.
IS Initial Support Initial global support released in morning prep as part of the global zones for the day Not always active. In those days S1 (support zone #1) is the first global support level
ITS Impulse Trading System ATW proprietary impulse mode trading strategy.
Local Zone Local support/resistance Zone SR levels based on lower timeframes and based on current intra-day price action. Constructed during the trading day based on current day price action
LOD Low Of Day Low of the day
LSP Left Shoulder Pivot High LSP: High pivot above current market price; or Low LSP: Low pivot below current market price
M or m Minute As in 1m
Median Line Median Line Application of Andrew’s Pitchfork tool to identify CTTLs and parallels above and below the CTTLs
Midday Session Midday Session 12:00 Noon ET
MA Moving Average Commonly used technical analysis tool
MP Market Profile A sophisticated technical analysis tool set for volume and time relationships to price. There are too many MP terms to define here. See course material.
n Ringed Pivot n Ringed Pivot Measure of strength; n bars to the left and right that are less than or equal to a high pivot or greater than or equal to a low pivot. TradeStation allows equal bars on left but not right.
NR 2-20 Narrowest cumulative range of 2 consecutive days out of the last 20 days. Major HPPD projection
NR7 Day with the narrowest range of the last 7 days. Major HPPD projection
NT Ninja Trader Trading and charting Platform widely used by ATW traders
OE Options Expiration Normally the Friday of the week with the 3rd Thursday of the month.
OpenX-CloseX OpenX-CloseX A bar which opens at one extreme and closes at the other.
P# Pivot Number Pivot number in a 1-2-3 Pivot set or wave. PD denotes a displaced pivot that is not part of the 1-2-3 pivot set. e.g. P3 of a 1-2-3 Pivot set
Parallel Trend Channel Parallel Trend Channel For up trending price action, a trendline is drawn through the low pivots and then a parallel line is drawn through the highest pivot in the time span between the first and last defining low pivots. For down trending price action, a trendline is drawn through the high pivots and then a parallel line is drawn through the lowest pivot in the time span between the first and last defining high pivots.
PAP Price Action Profile Description of expectations for a trading day . e.g. range expansion or reduction.
Pivot Pivot Highest point of price action that moves up and then down (High Pivot) or is the lowest point of price action that moves down and then up (Low Pivot).
PT Profit target Profit Target for a trade.
RBO Reversal Breakout Bar In a directional move, the first bar to change direction and break the previous bar’s extreme. Break below low of previous bar in an up trend; break above high of previous bar in a downtrend.
Ring Ring See n Ringed Pivot
Role Reversal SR level’s role changes once broken from support to resistance or resistance to support.
RSIX RSI Exhaustion ATW proprietary indicator based on RSI
RTC Retracement A fraction of wave height from P1 to P2 projected back from P2
RTTR Real Time Trade Room An ATW room in which live trades are called.
SAR Stop and Reverse Reversing a trade from long to short or short to long Exit a trade and enter the opposite trade at the same price level at the same time.
SET Structure Enhanced Trade Setup A trade setup with the support of market structure.
Significant Pivot Significant Pivot A multi-ringed pivot that stands out visually.
SP Strategic Prep Midday session where strategic, high level timeframes analysis is done on multiple markets.
SR Levels Support Resistance Level Price level or zone that acts as support or resistance level.
Symmetry Wave Symmetry 2 waves will be considered symmetrical if the 2nd wave is 78.6% to 138.2% of the size of the first wave.
SZ Swing Zone One of the daily global zones Location above or below the market signifies the directional bias or the higher level trend.
TED Temporary Equity Dip Trade that results in an account balance reduction. A trade is not a loss unless the trading plan is violated.
TL Trend line Line drawn through low pivots for price action moving up and through high pivots for price action moving down.
TOD Time of Day Line drawn through low pivots for price action moving up and through high pivots for price action moving down.
TP Trading Plan Trading Plan
TPD Triple Pivots Divergence ATW proprietary trading technique.
TS TradeStation Trading and charting platform and broker widely used by ATW traders Trading and charting Platform widely used by ATW traders
TTP Timing Triangulation Projection (Pattern) Special application of median lines to project future intersection of price and time
VB Volume Bar A bar that closes once a specific number of contracts or shares have been traded. e.g. 2250 VB is a chart where each bar represents 2250 contracts.
VolBO Volatility BreakOut BreakOut beyond volatility bands
VSA Volume Spread Analysis Market analysis technique based on bars’ volume, price range and closing location within the range
VWAP Volume Weighted Average Price Volume Weighted Average Price
W59 Wave 59 A scaled charting platform that facilitates timing analysis.
Wave Wave Price action between a high and a low pivot.
Wedge Wedge 5WM where W4 overlaps W1.
X Exhaustion Exhaustion
XMA Expotential Moving Average Moving average calculation that requires less calculation and avoid dropping data.
XO Cross Over Price action or indicator crosses over over another indicator. Typically used with price action, XMAs or bands.