A technical analysis tool that represents the total difference between the number of advancing and declining security prices. This index is considered one of the best indicators of market movements as a whole. Stock indexes such as the Dow Jones Industrial Average only tell us the strength of 30 stocks, whereas the advance/decline index can provide much more insight into the movements of the market.
AUTO STOP/TRIGGER STOPS/EXIT ASSIST
A handy stop size calculation and trailing tool developed by Alex. The Exit Assist (sometimes called trigger stop), will tell you how big your stops should be upon entering a trade. Once you are in the trade it will also update a trailing stop so you can stick with the trader for larger gains. This tool is not REQUIRED but pretty handy and helpful. We offer it for Trade Station and eSignal on our product page at http://www.puretick.com/product.html
Bollinger Band Indicator
A period in the trading day from 11:45 am to 1:45 PM EST characterized by low volume, momentum and fake outs
Time & Sales, Ticker, List of trades actually going off. Most platforms have this. Don't watch level 2. It's full of games.
A gap is a break or 'gap' between prices on a chart that occurs when the price of a stock makes a sharp move up or down. This price movement must occur when the cash markets are closed between 16:00PM EST and 9:30AM EST. For example, AAPL closes at 56.00 at 16:00pm and then opens at 57.50 at 9:30am the next day. We call this a $1.50 gap UP. Gap traders would be looking to short this gap up.
A type of candlestick chart that shares many characteristics with standard candlestick charts, but differs because of the values used to create each bar. Instead of using the open-high-low-close (OHLC) bars like standard candlestick charts, the Heikin-Ashi technique uses a modified formula
An oscillation indicator the predicts over bought and over sold levels. Similar to a bollinger band. We use keltner channels on our 3 minute scalp chart. Most charting platforms have this standard built in (eSignal, TS, Ninja). A "KELTNER DAY" is when the market moves up and down tagging each side of the keltner bands with no real trend or direction.
Market if touched order. Executes a market order if the current price reaches the specified level. This order type behaves as if you yourself were watching the prints and instantaneously executed a order at the current market price when your target value was hit.
- Fills your order at the current market price on the tape. There can be slippage on your fill as with all market orders, sometimes favorable, sometimes unfavorable.
or narrow range 7 just means we are in the the narrowest range (price wise) so far of the last 7 days straight. So that just means that TODAYS PRICE RANGE must be the narrowest compared to the last 7 trading days. It is easy to see this when you open a DAILY candlestick chart. Please see the video on this topic for more on NR7: http://www.puretick.com/video/nr7
Means to scale out of a position, eg: if you have 10 cars, means to sell a partial amount at higher increments like 5 shares out at 12400 and 5 shares out at 12405
Specific area in the market where prices tend to pause and sometimes even reverse. Like a BOUNCE point. See bounce point message. Also see this article: http://www.puretick.com/pivot-point-trading.html
Upward or downward price movements in a security or index. This is not to be confused with a TICK CHART or TICK INDEX
Often referred to as 'ticks' in the room. This is a market internals indicator (like the advance declines) It's the number of stocks trading on an uptick minus the number of stocks trading on a downtick. High readings are bullish, negative readings are bearish.
Method of creating a candle stick chart based on the amount of ticks (or trades) that have fired off instead of using a set time based interval. With a 1 minute chart, each new candle prints every 60 seconds of time passed. Now, if you create a 50 Tick chart, you'll see a new candle printed every time 50 trades have gone off. So a candle may print off every 5 minutes or every 10 seconds depending on the volume thats currently flowing through that particular index or stock. Contact the support team of your charting provider for more info on how to setup a tick cart. With eSignal you simply enter a small letter "t" after the interval number. So if I enter 89t in my interval box I will have created an 89 Tick Chart.
Glossary of Some Terms Used During Squawk Broadcast
How the E-mini Trades:
For the TRADERS AUDIO official FAQ please visit http://www.tradersaudio.com/faq.html
The E-mini S&P 500 Futures contract at the CME trades in dollars in .25 (1/4 point) intervals as the minimum price movement. Each tick is worth $12.50 and each index dollar or is also known as a "handle". A handle = $50. So the E-mini would trade in this order:
1092.00 these are known as "evens"
1092.25 these are known as "quarters"
1092.50 these are known as "half's"
1092.75 these are known as "seventy-five"
The difference between the bid/ask is known as the spread. Sometimes the bid/ask is wide and there could be a dollar or more difference.
To speed up the quotes, prices are always quoted to the last quarter so it is presumed you know the market is trading at that particular dollar level. It is very easy to follow along once you listen in. For example:
The market is trading at 1225. "Half Bid at Even" would mean 1225.50 (bid) at 1226.00 (offer).
"Fifty Bid" = 1225.50
"Even Bid" = 1225.00
FREQUENTLY USED SQUAWK BOX TERMS:
BOOK: Buyers that have actual resting orders to Buy below the market and Sellers that have resting orders to Sell above the market at any given time. Currently the CME feed shows orders five (5) ticks above and below the current price. These resting orders are known in the industry as the "book".
BUY PROGRAMS: Using our proprietary Program Trading Indicator, we alert you to automated programs used by institutions that cause buying in the E-mini S&P Futures.
SELL PROGRAMS: Using our proprietary Program Trading Indicator, we alert you to automated programs used by institutions that cause selling in the E-mini S&P Futures.
CAR: Phrase for "Contract". 10 "cars" = 10 contracts
BID: The current price you would get if you sold at market
OFFER: The current price you would pay if you bought at market
INSTITUTIONAL: Trade Size Lots of 200 contracts or more
OFFERED: This means offered for SALE. 100 Offered at 50 means 100 contracts offered for sale at 1445.50
If you hear a big offer, this means someone wants to sell a big number of contracts above the market
CHOPPY: No real trend. Market is erratic and usually controlled by local's
THIN: Volume is light.
BEST: Highest bid or lowest offer at that given time.
ALL DAY: Used a summation term usually regarding quantity Example…25000 traded all day".
PULLS (OR PULLED): When an offer or bid quoted gets cancelled/withdrawn
FADING or FADES: Going the opposite way of the move or trend
PRINT: A price that is actually traded and sent out (printed) to real-time data
EVEN: Price is at an even dollar level: 1445.00 OR 1444.00, etc.
SMALL: Small car or contract lot. Not a big trade.
LIGHT: Same as above
TEN TIMES: Ten contracts
FIFTY TIMES: Fifty contracts
ON THE BID: Orders to buy on the Bid - usually limit orders.
If you'd like your own personal live clear squawk box feed, please log in the trading room channel for the special discount link. You also have the option just to hear the PIT noise without the trade numbers being called in the auction style format. PureTick members will be given a DISCOUNT of $50 each month!!!!!!