The following are most of the concepts which I use as tools for doing the analysis of the technical situations. And again, the analysis is NOT the trade setup. The setup/pattern should be the most important focus which we need to have. The analysis is not nearly as important, and we should keep it as simple as possible. The preparing, the planning, the approach, the rules, the trade setups – these are the things which we should be working on. They (the concepts and the analysis and the trade setups) all mesh together to a certain extent actually. And no matter what, we need to develop our analysis over time as we slowly learn it, but we need to develop our trading skills right from the start. This thing is all about probabilities.
Getting the trend, the 3 of them, correct as well as possible and as consistently as possible, is by far the main goal. And the time-frame focus must be an important consideration.
The abbreviations below are what I will be using going forward instead of always writing them out in full. They also would be a great study guide to try to understand, at least somewhat, the following concepts. They are grouped by relationships as closely as possible, tho of course there is a lot of overlapping for what they mean, and how to use them.
utr – uptrend
dtr – downtrend
TR – trading range
sp – supply
dem – demand
svd – supply vs demand
sup – support
res – resistance
OS – overhead supply
SD – solid demand underneath
EA – ending action, could be one of the following 1,2,3,3.5/4
SA – stopping action (minor EA)
PS – preliminary support, EA#1, bottom
PSY – preliminary supply, EA#1, top
accum – accumulation
reacc – reaccumulation
upa – upside of accumulation, also the frontside (fsd) of the move, as opposed to the backside of the move (bsd)
distr – distribution
redist – redistribution
absp – absorption
exorp – exorption
RAB – reaccumulation/absorption area, not re-absorption
TAB – trend absorption
WS – wave structure
SOS – sign of strength
SOW – sign of weakness
SOT – shortening of thrust
GV – green volume
RV – red volume
bko – breakout
pbko – pre-breakout
rbko – recent breakout
str – strong trending, runner
DP – dip buy
GS – gap stock, more quality stock
SSG – small stock gapper, likely daytrade and/or overnight
BT – bounce trade
CPB – complex bottom
SS – strong stock
SE – strong earner, especially sequential earnings increase
RS – relative strength
GRS – group relative strength
upthr – upthrust
spr – spring
SL – spike low
TS – terminal shakeout, #3.5/4 EA
sterm – short-term
iterm – intermediate-term
lterm – long-term
PNF – point and figure charting
LLBH – last low before the high
LHBL – last high before the low
SPE – strong profit earner
SSG – strong sales growth
SSQ – strong sequential growth
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