250'S=   stock prices in increments of 2.5, these levels act as support and resistance 2.40, 2.50 and 2.60 levels (eg: 47.40, 47.50 and 47.60, also 22.40, 22.50 , 22.60) options are priced in 2.50 increments up to $50 and this acts as a magnet

3-Day Rule: 3-day clear rule from SEC/cash accounts/retirement must be cash/3 days for transactions to clear so you cant re-use that money.

10Q:  Quarterly Report of corporate performance filed with the SEC by a public company for the first three quarters of its fiscal year. Required by law.

ADX or sometimes Relative Strength: (p187) Average Directional Movement Index study system developed by J. Welles Wilder, Unlike most oscillators, ADX does not attempt to gage the direction of the trend; instead, it works to gage the strength of the trend. ADX operates on a configurable scale of 0 to 100; the higher the oscillator, the stronger the trend (over 30 usually). Each line measures the current periods "todays" range compared to yesterdays. 
    aBuy when the +DI - - - - - -  rises above the -DI and ADX line is above 30
    aSell when the +DI crosses down and heads below the -DI (solid line) and ADX line is above 30
    aWhen ADX is below 30 and both DI signals weave around jumbled then the market is too trendless to trade

AON: All or none instructs broker to fill all or none at all! (see IOC)

ASK/OFFER PRICE=(SELLERS) refers to the lowest price at which market maker (behalf of person) will sell a specified number of shares of a stock at any given time. Ask price is normally higher then bid price
*Always try to buy on the BID and sell on the ASK. Not the reverse way around! ( harder for high vol stocks)
Ask/Offered shares is your specialist set buying price, bid is selling price your being offered that is negotiable for your shares. NYSE rules & nasdaq differ. More asks on level II or any quote screen means selling/lower prices!
 Ask - Price requested by the seller.

ATR = Average True Range study: Measures a security's volatility. ATR does not provide an indication of price direction or duration, simply the degree of price movement or volatility. High ATR values indicate high volatility and may be an indication of panic selling or panic buying. Low ATR readings indicate sideways movement by the stock. Good to see if stock has large moves. Who wants to play a shallow non volitle stock? At the same time who wants to play one that wiggles TOO much (goog etc)  See chart configuration under day trading notes.
If a stock has an atr of 4 and its moved 3.75 up then dont be looking at a long


Arbitrage: *n* Technique of buying and selling same securities to take advantage of small differences in price.

Basket Stock = *n* Familiar stock you trade regularly. 3 Million Avg Volume or more. Familiarity breeds confidence. See Watch board in direct pro

Blanket = Lots of prints at the same price level on the TOS

Door Knob = Confusion/Up and down prints around the same level 1107 1108 1107 1108 1107 1108 (chop)

BID PRICE (BUYERS) refers to the highest price a market maker (behalf of person) will pay to purchase the stock.
 Buyers and sellers set price of a stock. Selling usually triggers lower price (usually!)
 Bid price is normally lower then ask price unless markets are crossed
*Always try to buy on the BID and sell on the ASK. Not the reverse way around! ( harder for high vol stocks)
Ask/Offered shares is your specialist set buying price, bid is selling price your being offered that is negotiable for your shares. NYSE rules & nasdaq differ.  More bids on level II or any quote screen means buying/higher demand/prices..

Bid/Ask Spread=Spread is x100 (6x5) means there are 600 bids to buy and 500 shares for sale at ask price
 Large fluctuations in bid and ask volume can be clues to whos buying and what will happen next. There are more people who want to buy the stock then sell it! Thats good for long positions.

Bear Market-Poor/Declining, Sellers causing decline in price

Bottom Up Investing=An investment approach that de-emphasizes the significance of economic and market cycles. This approach focuses on the analysis of individual stocks. In bottom-up investing, therefore, the investor focuses his or her attention on a specific company rather than on the industry in which that company operates or on the economy as a whole.
See TOP DOWN investing

Bollinger Bands = *n* Developed by John Bollinger, Bollinger Bands are similar to moving average envelopes. The bands are plotted at two standard deviations above and below a 20-day moving average. As a rule, prices are considered overbought when they touch the upper band. They are considered oversold when they touch the lower band. Using two standard deviations ensures that 95% of the price data will fall between the two trading bands. Study.  Bollinger bands are not support levels. they are exhaustion levels

BBS is the bollinger bands with 20 period with 2 standard deviations. *n* which is the standard in direct pro anyway

bond=A certificate which is evidence of a debt on which the issuer promises to pay the holder a specified amount of interest for a specified length of time, and to repay the loan on its maturity. Strictly speaking, assets are pledged as security for the loan, except in the case of government bonds, but the term is often loosely used to describe any debt issue. Bonds are issued by corporations and by federal, provincial and municipal governments. ... *n*

For example, say you buy a bond with a face value of $1,000, a coupon of 8%, and a maturity of 10 years. This means you'll receive a total of $80 ($1,000*8%) of interest per year for the next 10 years. Actually, because most bonds pay interest semi-annually, you'll receive two payments of $40 a year for 10 years. When the bond matures after a decade, you'll get your $1,000 back.

In the case of bankruptcy, a bondholder will get paid before a shareholder because you are a creditor.

However, the factor that influences a bond more than any other is the level of prevailing interest rates in the economy. When interest rates rise, the prices of bonds in the market fall, thereby raising the yield of the older bonds and bringing them into line with newer bonds being issued with higher coupons. When interest rates fall, the prices of bonds in the market rise, thereby lowering the yield of the older bonds and bringing them into line with newer bonds being issued with lower coupons.

Bills - debt securities maturing in less than one year.
Notes - debt securities maturing in one to 10 years.
Bonds - debt securities maturing in more than 10 years.

bozu candle = long shadows, back to back hammers, MM tricks . bozu means very big candle

breadth = Indicators that measure market flow such as $TICK and $TRIN.. as in dragon-breath!

Bullish market-Aggressive/Good, Buyers driving price higher

BUYFADE=*n* the noodles move down and stock moves up (see SELLFADE opposite)

CANSLIM=Curr.Earnings Ann.Earnings NewProduct? Supply&Demand LeaderorLaggard? Institutional sponsorship The market indexes. For more long term investing. IBD Coined *n*

CRANK =  to move with a winding course : ZIGZAG, reverse *n*

CCI=Commodity Channel Index study, a timing system that is best applied to commodity contracts which have cyclical or seasonal tendencies. CCI does not determine the length of cycles - it is designed to detect when such cycles begin and end through the use of a statistical analysis which incorporates a moving average and a divisor reflecting both the possible and actual trading ranges. Although developed primarily for commodities broker, the CCI could conceivably be used to analyze stocks as well.

0 Line = Major support and resistance. Pay attention at crosses.
       A trend is defined as 5 or more bars (depending on your time frame chart) above or below ZL (zero line)

CD=Certificate of Deposite

Channels: *n*  TIGHT CHANNELS:  this refers to the moving averages charts, as the 5 and 15 period simple moving averages indicated the trend channel. rule of thumb, when the space between the 5/15 period is less than .15 then it is a TIGHT RANGE--- this usually is light volume and should not be overtraded as there are many headfakes and wiggles

  Consolidation/Tight Channel -> Break/Wide Channel -> Peak/Exhaustion -> Reversal/Tight Channel
          By channels we mean bands or MA lines forming channels around the prices.

CHOP = chop means no direction just random pops and drops as the moving averages are tight

coefficient = A constant that multiplies a variable.

coil = a V shape reversal bounce which may or may not have followthrough, often referred to the stochastics (ie: MSFT 20 band coil 1 minute stochastics, means MSFT is taking a V shaped bounce through the 20 band). Trigger can be a coil that crosses the stochastics back up.

CONFIDENCE Index = A confidence indicator calculated by dividing the average yield on high-grade bonds by the average yield on intermediate-grade bonds. The discrepancy between the yields is indicative of investor confidence. Started by Barrons

conglomerate = Made up of parts from various sources or of various kinds.

coupon = The interest rate stated on a bond when it's issued. The coupon is typically paid semiannually.
This is also referred to as the "coupon rate" or "coupon percent rate".
Investopedia Says...     For example, a $1,000 bond with a coupon of 7% will pay you $70 a year.  *n*

DIA = Shares in a trust representing all 30 stocks in the Dow Jones Industrial Average. Diamonds trade on the American Stock Exchange. 'Diamonds trust' Mirrors YM futures

DAX = The most widely used German index. More on indices $DAXI

debt ratio=A ratio that indicates what proportion of debt a company has relative to its assets. It is calculated by dividing total debts by total assets.*n*

derivatives=Instruments, such as options and futures contracts, which derive their value from the value of an underlying security, group of securities or an index

dividend = Payments made by a corporation to its shareholders (distribution of earnings). The amount you'll receive is based on the number of shares you own.

dividend yeild=An indication of the income generated by a share of stock. Dividend yield is calculated as annual dividends per share divided by price per share.*n*

doji = a candle covering a large price range, but starting and ending at the same price. + Comes after a series of uptrend or downtrend candles and reverses trend. *n*

EBB = Ral has modified John Bolilnger's regular Bollinger bands to conform to the Fibonacci methematics of the methods so instead of 2.0 standard deviations, we use the Fibonacci growth constant of 2.618 and instead of the 20 periods we use the 13 EMA periods which are the standard periods for our Fibonacci based system this creates what I call Extreme Bollinger Bands

Esig source: (H+L)/2 seem to work on

ETF = Exchange-Traded Fund. A basket of stocks that is bought and sold on a stock exchange as if it were a single stock. the QQQQ's are an example of this (formally QQQ on the amex exchange.See "Symbol Guide - Rush Trade Indicies & ETFs.XLS for top ETFS

Fibonacci=(p192) Mathimatician who invented number sequencing. Appear to be for more longer terms. it finds the support and resistance points on a stock, index, or commodity chart. Fibonacci retractment levels act as support and resistance levels. "Fibs". Levels are gauged at 38.2%, 50% and 61.8% Draw an uptrend or downtrend connecting a major peak and trough, activate your charting software Fibonacci option. We use "fib lines" as possibile support & resistance. Use to strengthen your buy and sell decisions but not as definate signals. Tip: Trades uses fib lines to measure support and resistance areas in gaps. One method: stretch the lines from closing price of gap toopening price. You can gauge potential support/resistance as traders try to close the gap. Self fulfilling prophecy. Studies on charts:

Example of fib series: 1 3 5 8 13 21 34 55 89 144 233 377


    Arcs: Fibonacci Arcs are displayed by first drawing a trend line between two extreme points, for example, a trough and opposing peak. Three arcs are then drawn, centered on the second extreme point, so they intersect the trend line at the Fibonacci levels of 38.2%, 50.0%, and 61.8%. The interpretation of Fibonacci Arcs involves anticipating support and resistance as prices approach the arcs. Draw arc line from left to right, bottom up or top down. Appear to be for more longer terms. (gif in images directory)
     
    Fans: Fibonacci Fan Lines are displayed by drawing a trend line between two extreme points, for example, a trough and opposing peak. Then an "invisible" vertical line is drawn through the second extreme point. Three trend lines are then drawn from the first extreme point so they pass through the invisible vertical line at the Fibonacci levels of 38.2%, 50.0%, and 61.8%.. (This technique is similar to Speed Resistance Lines.) The following chart of Texaco shows how prices found support at the Fan Lines. Appear to be for more longer terms.  (gif in images directory)

    Retractment Points: Fibonacci Retracements are displayed by first drawing a trend line between two extreme points of the last trend (not current trend), for example, a trough and opposing peak. A series of nine horizontal lines are drawn intersecting the trend line at the Fibonacci levels of 0.0%, 23.6%, 38.2%, 50%, 61.8%, 100%, 161.8%, 261.8%, and 423.6%. (Some of the lines will probably not be visible because they will be off the scale.)

After a significant price move (either up or down), prices will often retrace a significant portion (if not all) of the original move. As prices retrace, support and resistance levels often occur at or near the Fibonacci Retracement levels. Look at video labeled fibs in mulah. In the following chart of Eastman Kodak, Fibonacci Retracement lines were drawn between a major trough and peak.


You can see (gif in images directory) that support and resistance occurred near the Fibonacci levels of 23 and 38%. Appear to be for more longer terms.

    Time Zones: Fibonacci Time Zones are a series of vertical lines. They are spaced at the Fibonacci intervals of 1, 2, 3, 5, 8, 13, 21, 34, etc. The interpretation of Fibonacci Time Zones involves looking for significant changes in price near the vertical lines.

In the following example, Fibonacci Time Zones were drawn on the Dow Jones Industrials beginning at the market bottom in 1970.


You can see that significant changes (gif in images directory) in the Industrials occurred on or near the Time Zone lines. Appear to be for more longer terms.

    More at http://www.borsanaliz.com/eng/fibonacci.htm

Float: *n* In securities, the number of outstanding shares in a corporation available for trading by the public.
           Thin Float: When only a small number of shares of a common stock are still available on the market thus its easier to move the price of a stock. like trying to blow a few sheets of paper around as opposed to trying to blow a book around (thick float)
        THICK: Many shares of a company available for trade

FOPS = refers to Fall Off Pattern Signal. It is nominally a bearish pattern. *n* see it under day trade setups for more

Foregone Earnings = For example, if fund XYZ has a 5% sales charge (front-end load) and you invest $11,000, then your net investment would be $9,500. In other words, $500 was not invested.

If the fund earned 10% return, and you held the shares for 1 year, then you did not receive $50 (.10 x 500) in earnings. The $50 is the money you did not earn because your $500 was not invested.

Forex:  An over the counter market where buyers and sellers conduct exchange of foreign and domestic curriences

Futures: Contracts to buy or sell specific quantities of a commodity (pork bellies!) or financial instrument at a specified price with delivery set at a specified time in the future. No uptick rule. Futures are Grains, meat, energy etc... See OPTIONS for stock..  Futures close at 4:15pm EST and reopen at 4:45pm EST.
-Watch tick, trin and all that stuff when trading futures.

E-Minis: are small affordble versions of futures! Contract Month codes: March-H, June-M, Sept-U, Dec-Z
         Dont hold them overnight. Big price flucation. No uptick rule on futures/emini. They also have tax advantages.
         See nfa.futures.org, cme.com, cbot.com for more on futures/emini futures.

ECN:
    ECN is an acronym for Electronic Communication Network. ECN's allow customers to bypass the middlemen (market makers) that have traditionally executed customer orders. ECNs receive orders that are either executed against other orders within the ECN's order book or displayed within the order book.
    SuperDOT=NYSE/AMEX, SOES & ISLAND=NASDAQ

EMA = An exponentially smoothed moving average () gives greater weight to the more recent data, in an attempt to reduce the lag. Unlike the SMA that gives equal weight to all prices, the exponential average gives more weight to the most recent currency prices. The purpose of the exponential weight is to give more importance to the most recent data in the determination of trend direction. Raghee Horner swears by the 34 EMA that she calls 'the wave'

EPS=Earnings per share (EPS)
    A company's profit divided by its number of outstanding shares. If a company earning $2 million in one year had $2 million shares of stock outstanding, its EPS would be $1 per share. In calculating EPS, the company often uses a weighted average of shares outstanding over the reporting term. I like $1.00 or higher. Higher = better

Fundamental analysis=is a method used to evaluate the worth of a security by studying the financial data of the issuer. It scrutinizes the issuer's income and expenses, assets and liabilities, management, and position in its industry. In other words, it focuses on the "basics" of the business.

George Soros = Philanthropist & wealthy investor who takes a large amount of politcal stances

goodwill = goodwill: (accounting) an intangible asset valued according to the advantage or reputation a business has acquired (over and above its tangible assets)

guidance - In financial reporting, guidance is a publicly traded corporation's official prediction of its own near-future profit or loss, stated as an amount of money per share. Guidance is usually given in a quarterly report to forecast the corporation's performance in the next quarter. Guidance is an aid to financial analysts and the stock market in valuing the corporation, and helps prevent overvaluation.  *n*

GTC = Good Till Close (originally good til cancelled) trades use this order then move their stop when it is near

Heikin-Ashi =    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:

Close = (Open+High+Low+Close)/4
Open = [Open (previous bar) + Close (previous bar)]/2
High = Max (High,Open,Close)
Low = Min (Low,Open, Close)

headfake = When a market maker attempts to place bids and offers in such a way as to make other traders think a stock is moving in a direction that it really isn't. *n*

HEDGE/HEDGING = Hedge is an investment that is taken out specifically to reduce or cancel out the risk in another investment. The term is a shortened form of "hedging your bets", a gambling term. A lot of EFT's are used for hedging
In options=a stragey involving the use of one open position to protect another. Eh same.

hedge fund=A private investment fund or pool that trades and invests in various assets such as securities, commodities, currency, and derivatives on behalf of its clients, typically wealthy individuals. Some Commodity Pool Operators operate hedge funds.

history - financial report of the past duh.. *n*

indemnify=secure against hurt loss or damage as in an imdemnification agreement in a corporation

IBD = Investors Business Daily, Print and web publication for the research of stocks.

 Check articles: Big picture, Top 10 News Storis, Use my stock lists

 Charts of stocks with a highlighted border may be near a potential buy point. Please note that the chart analyses will not  be buy or sell recommendations.

implied volatility = The volatility of a futures contract, security, or other instrument as implied by the prices of an option on that instrument, calculated using an options pricing model.

IOC = Immeidate or Cancel. An order requiring that all or part of the order be executed immediately after it has been brought to the market. Any portions not executed immediately are automatically cancelled. IOC orders are available on the Order Entry Bar (Market Depth Window) under “TIF” at the very bottom.  Route must be set to DART. *n*

ISM Services = Institute of Supply Management. There are two main indexs: Manufacturing & Services. They are monthly gauge of business activity based principally on the purcahse of supplies for use in manufacturing and for usein services as well as measuring various features such as prices, wages etc. Theya re a moderact impact report typically. The FED uses ISM as one of its inflation indexs.

IRA = A type of Individual Retirement Annuity in which contributions are made with after-tax (nondeductible) dollars. If certain requirements are met, earnings accumulate tax-free, and no federal income tax is levied when qualifying distributions are taken from the plan.

ROTH IRA = A type of Individual Retirement Annuity in which contributions are made with after-tax (nondeductible) dollars. If certain requirements
are met, earnings accumulate tax-free, and no federal income tax is levied when qualifying distributions are

Intraday=Within the current day

January Effect=An general increase in stock prices during the month of January.

Joseph Granville = Wrote many books on technical analsys and made a lot of money investing. B&N guy recomended "the book of granville"

Larry Kudlow = (born August 19, 1947), nicknamed Larry, is an American conservative, supply-side economic commentator. He currently hosts the TV program Kudlow & Company on CNBC. Kudlow is also the economics editor for National Review (a political magazine) and its online complement, the National Review Online.

left-wing = The above term describes a political party or one of its members who advocates social change. A left-wing party will normally advocate greater public ownership of the means of production and an extensive system of social security.

Level I Quote: = Inside bid/ask/size/price/range

Level II Quote Screen/Market Depth: = Shows you depth, how many shares at each level. Auto updates. Its the shit! Demand! Etc. Use this screen wisely.
Price action: Moving clockwise=bearish, counterclockwise=bullish. Bid/Asks under the top position are considered 'away' or 'out of market' 

Up and down arrows on book indicate bid/offer changes from original order placed by firm.
8x30, 800 shares need buying a    nd 3000 selling/offered. This is pretty week. The nXn are only the inside offers on the chart or the upper most color.

Selling signs on level II screen:
 -Large blocks on offer/ask
 -Bunch of down arrows on BID
 -High ratio bid/offer. Ie 2x45
 -Lots of tickdowns
 -Watch large market makers (TMBR, PSE etc..)

See TICKER & NBBO......

liquid = A security is liquid if it can be converted into cash at any time at a low cost. Usually applies to short-term marketable securities and very short-term nonmarketable instruments

Limit order:
    An order to buy a stock at or below a specified price or to sell a stock at or above a
    specified price. For instance, you could tell a broker ``Buy me 100 shares of XYZ Corp at
    $8 or less'' or to ``sell 100 shares of XYZ at $11 or better.'' The customer specifies a price
    and the order can be executed only if the market reaches or betters that price. A conditional
    trading order designed to avoid the danger of adverse unexpected price changes.

Listed stock: NYSE stock (in jays usage)

Market capitalization:  The total market value of a company or stock. Market  capitalization is calculated by multiplying the number of shares by the current market price of the shares.

Market Maker: See specialist, LMM=Lead Market Maker

NAV = The value of a collective investment fund based on the market price of securities held in its portfolio. Units in open ended funds are valued using this measure. Closed ended investment trusts have a net asset value but have a separate market value. NAV per share is calculated by dividing this figure by the number of ordinary shares. Investments trusts can trade at net asset value or their price can be at a premium or discount to NAV.

NASDAQ = Trade market mostly using ECN's, NASDAQ symbols are all 4 letter, NYSE & AMEX and 3 letter

NBBO = National Best Bid or Offer. NBBO is the bid and ask the average person will see. Day traders usually use Level 2 market maker screens to see ALL the bids and offers for a particular stock. The NBBO is updated throughout the day to show the highest and lowest offers for a security in all exchanges and market makers

NADOOS = Nasdaq 100 Futures

NOODLES = Nasdaq 100 Eminis futures contracts (ticker changes with contract)
Ral# the Nasdaq composite encompass many sectors, while the Naz100 index and futures is primarily the largest non-financial  technology stocks of teh Nasdaq *n*

NQ's=  NASDAQ 100 Eminis Futures

OCO = One cancels other order. OCO orders are available through Trade Strategies.  When one criteria is met, the other order is canceled. ahhh! *n*

OBV=On Balance Volume study, Sum of volume used to quantify buying or selling pressure to either confirm the current price trend or warn of a possible reversal

otcbb.com = Penny stocks (over the counter)

oscillators = The general term for a device that generates alternating patters.  (MACD, ADX)

LEANDOWN/LEANS = UT--the opposite of a short squeeze, you get continued selling under the 20 band stochastics climaxing in a panic "look to lock in leans" *n*

linear regression = lsma (linear squares moving average)

metrics = Methods that a company has come up with to measure something, like effectiveness of a training program

Moving Average MA/SMA=An average of data for a certain number of time periods. It "moves" because for each calculation, we use the latest x number of time periods' data. By definition, a moving average lags the market. An exponentially smoothed moving average (EMA) gives greater weight to the more recent data, in an attempt to reduce the lag. See ChartSchool article on Moving Averages.
 http://www.stockcharts.com/education/IndicatorAnalysis/indic_movingAvg.html
 * AVOID entering a long trade when the 200 day moving average slopes down over the tops of price pattern.
 * Dont short longterm a stock when the 200 Day MA is rising
When lower MA# is on top of higher MA# market is usually in uptrend. (ie: 15pd above 50pd)
When higher ma is on top of lower ma, market is usually in downtrend

Momentum Indicator=Study that Measures a security's rate-of-change and displays it as a ratio. The ongoing plot line moves above and below 100. By looking for divergences, centerline crossovers and extreme readings, bullish and bearish interpretations are found. See rate of change for percentage of this study.  See chart configuration under day trading notes.

Money Flow = Study Indicator Calculated by averaging the high, low, and closing prices, and multiplying by the daily volume. Comparing that result with the number for the previous day tells you whether money flow was positive or negative for the current day. Positive money flow indicates buying pressure. Negative money flow indicates selling pressure.  See chart configuration under day trading notes.

Money Flow Index = Study that Compares “positive money flow” to “negative money flow.” Compare this indicator to price in order to identify the strength or weakness of a trend. The MFI is measured on a 0 - 100 scale and is usually calculated using a 14 day period. It is related to the Relative Strength Index, but where the RSI only incorporates prices, the Money Flow Index also accounts for volume.  See chart configuration under day trading notes.  See chart configuration under day trading notes.

MA/Moving Average=Moving Average The average of a stock’s price or volume over a specific time period.
 (SMA=simple moving average--see below)  See chart configuration under day trading notes.

MACD = An indicator study that follows the difference between a series of moving averages. The indicator has two lines, the MACD line (yellow) and a signal (aqua). A buy signal is generated when the MACD line rises above the signal line. A sell is generated when the MACD line falls below the signal. Because the MACD is generated from moving averages it is has a unique ability capture wide swinging moves in markets. Divergence, trendlines and support lines can also be applied to the MACD to generate additional signals. MACD stands for moving average convergance divergance. Most software use range +100 to -100 with zero as median line. Most traders agree that MACD gives better signals on the longer term instead of day-trading/intra day. But feel free to try it. Dont confuse it with stochastics oscillator.
  --- Signal line (usually dotted/aqua) - "slow" 9 period EMA of the MACD - When the MACD line travels below the signal line the price is usually falling in a downtrend. You'll stay short and bearish.
 __ MACD line (straight/yellow) - "fast:" line - Generally when the MACD line rides above the signal line the price is in an uptrend and you'll concentrate on long positions
  a  Some invenstors like to buy when the MACD line crosses above zero and sell when it crosses below zero line.
 a MACD loses effectiveness in horizontal markets Bottom line, use it in uptrend or downtrending markets

MIT = An order to purchase or sell a security as soon as a specific price is reached. Once the security reaches a certain price, the order automatically becomes a market order. A Market if Touched order is an order designed to buy (or sell) a contract below (or above) the
market.

MOC = Market on close. A type of order, which requires that an order be executed at or near the close of trading day on the day the order is entered. A MOC order, which can be considered a type of day order, cannot be used as part of a GTC order.

naked short = naked short is a sale of stock in which a stock broker does not find the stock sharesto borrow within 3 or 13 days. A retail investor is not allowed to naked short, but a market maker is allowed to have a naked short for "bona-fide market making."

OPTIONS = (see also futures) An option is a contract which gives the buyer the right (but not the obligation) to purchase (or sell) the underlying STOCK/SECURITY at a specific price (strike price) for a set period of time. If the option is not exercised by this set date, it expires and no longer has value. The investor pays a premium in order to get the option.  Options only trade during normal market hours. See Section on OPTIONS OPTIONS OPTIONS in this file!


OVERSHOOTS:   When stocks tick a .50 increment they tend to have slippage above and beneath that level by .10, identical to coil support and resistance levels.  (ie: to clip the overshoots at 51 on MSFT means to sell your longs up to 51.10) *n*

par value = The face value of a bond. *n* What confuses many people is that the par value is not the price of the bond. A bond's price fluctuates throughout its life in response to a number of variables (more on this later). When a bond trades at a price above the face value, it is said to be selling at a premium. When a bond sells below face value, it is said to be selling at a discount.

PARE =  *n* Means to scale out of a position, eg: if you own 1,000 shares of MSFT, means to sell a partial amount at higher increments like 700 shares out at 49.70 and 300 shares out at 49.90 Take profits on some of your position. Paring only applies to traders who trade atleast 1000 shares. You pare because a short time frame signals exhaustion while a wider time frame signals continuation.

program trading = Computerized stock trades involving the purchase or sale of a basket of 15 or more stocks generally with a total market value of USD 1 million or more, using metrics and algorithms based on market analysis and experience.

pullback=stock opens high and falls down bout 15-20 after open then slowly rises back
         Good time to short then or buy in the dip

PE=Price/Earings Ratio, Price of a stock divided by its earnings per share./Buy stocks with P/E of $11 or so or higher.  Assume XYZ Co. sells for $25.50 per share and has earned $2.55 per share this year; $25.50 = 10 times $2.55. XYZ stock sells for ten times earnings. Def2: A stock's market price divided by its current or estimated future earnings per share. The PE Ratio is used by investors as a fundamental measure of the attractiveness of a particular security versus all other securities. The lower the ratio relative to the average of the sharemarket, the lower the market's profit growth expectations. def3: The most common measure of how expensive a stock is. The PE ratio is calculated by dividing the earnings per share figure into the market price of the shares. If a company has earnings per share of 35p and the market price is 500p, the shares have a PE ratio of 14.3 (500 divided by 35). Another way of saying this is that the shares are selling at 14.3 times earnings.

PEG=Buy stocks with PEG less then 1. A valuation measure which which compares the P/E ratio of a company to its earnings growth rate (Price/Earnings to Growth, hence PEG). The P/E and earnings growth rates used can be either trailing numbers or forward estimates.

PIVOT points=*n* Points, based on Fibonacci numbers, at which market direction is expected to transition to a different trend. Buy if price is far approaching R1 or R2. Wait for it to close above those points if its near they are resistance. When falling close to S1 or S2 dont sell short it may bounce back up from support. A lot of trading programs have and mainly forex programs. They are based on yesterdays high/low close. *n*
Pivot Points Calculation:

H – Yesterday’s High
L – Yesterday’s Low
C – Yesterday’s Close

The five equations for the Pivot Lines are...

Red Line: P = (H + L + C) / 3

Blue Line: R1 = 2 * P - L

Green Line: S1 = 2 * P - H

Yellow Line: R2 = P + (R1 - S1)

Yellow Line: S2 = P - (R1 - S1)

P/S Ratio=less then 2 is A ok (price share ratio)

P(UP) =  *n* PowerUPtik breakout, a flatline 5 period resistance and a rising 15 period support that breaks out when 5 period breaks higher. PUP! The 5 Period MA will go sideways and the 15 MA will go higher. Eventually the 5 will break, squeeze the shorts and burst higher. In most cases a PUP will be followed by a mini-inverse pup which then forms a make or break situation. This initial mini-pup/slip suckers shorters in that can get hammered out quickly.
mini-pup = same thing but found on the stochastics chart instead of the candle chart

If the noodles are forming a 3 min moving average PUP then most stocks will lift/rise

premise = to set forth beforehand as an introduction or a postulate b : to offer as a premise in an argument. in stocks to check stuff before making a trade or discuss (same def duh)

profit margin=A ratio of profitability calculated as gross earnings divided by revenues (or, said another way, gross profits divided by sales). It measures how much out of every dollar of sales a company actually keeps in earnings.*n*
Profit margin is very useful when comparing companies in similar industries. A higher profit margin indicates a more profitable company that has better control over its costs compared to the competitors in the industry. Profit margin is displayed as a percentage; a 20% profit margin, for example, which means that the company has a net income of $0.20 for each dollar of sales.*n*

proshares =    1. Ultra Dow30 ProShares (DDM). ETF with an inverse relationship. Ie: If you buy PSQ you're actualing going short on the QQQQ's. These are good for accounts that will not allow shorts (ie: 401k) for a standard day trader they are useless because you can just short the QQQQ's.
   2. Ultra MidCap400 ProShares (MVV)
   3. Ultra QQQ ProShares (QLD)
   4. Ultra S&P500 ProShares (SSO)
   5. Short Dow30 ProShares (DOG)
   6. Short MidCap400 ProShares (MYY)
   7. Short QQQ ProShares (PSQ)
   8. Short S&P500 ProShares (SH)

Rate of change = Rate of Change: Identical to Momentum study, except that the Price ROC indicator displays the rate-of-change as a percentage whereas the Momentum indicator displays the rate-of-change as a ratio.   See chart configuration under day trading notes.

rally=A sudden, significant rise in the price of an individual security or in the market as a whole.

Reit Fund=Real Estate Investment Trust

ROE=Higher # is better/Return on Equity. ROE is an accounting ratio of net profits divided by equity. Measures company profitability relative to its capital base.

Relative Strength RSI: Study in direct pro. Related to the Money Flow Index, but incorporates only prices, not volume. RSI is plotted on a vertical scale from 0 to 100. Values above 70 are considered overbought and values below 30, oversold. When prices are over 70 or below 30 and diverge from price action, a warning is given of a possible trend reversal.  See chart configuration under day trading notes.

Relative Volatility Index: Study Used to measure the direction of volatility. RVI is identical to the Relative Strength Index, except that it does not measure price as an indicator of market strength. RVI is plotted on a vertical scale from 0 to 100. Values above 50 indicate an increase in volatility (rapid changes in stock)  See chart configuration under day trading notes.

RSI=Relative Strength RS Indicator IBD, Exclusive rating in Investor's Business Daily. This IBD SmartSelect® Corporate Rating measures each stock's price performance over the latest twelve months compared to all other stocks 0-100

Reserve order = *n* Allows you to place a smaller size on Level 2 while actually trying to sell much larger sizes (eg:  showing only 200 shares on the ASK on MSFT on Arca, Redi or Inca to bleed out 2,000 shares in reserve...PROCEDURE: Make sure that your order entry bar is set up for "Normal".  Using Display you will need to make sure that your "order type" is a Limit order, Route needs to either be ARCA or INET.  Example if you are wanting to sell 10,000 XYZ and you only want to show 1000 XYZ at a time so you don't spook the market you will do the following (second attachment).  Everytime a 1000 XYZ shares are sold then it will automatically refresh with another 1000 XYZ until the order is filled completely.


Resistance=is when sellers prevent stocks from rising any higher and dump out, graph line will decline at common points
           Resistance=sellers. Buy above support and sell below resistance.
           *n* Support/resistance levels rarely break on the first attempt unless extremely heavy volume.

Scalping=aka Front Running, The practice of trading in and out of the market on very small price fluctuations usually just enough to capture the spread. Try if you'd like.
Slang: Clips

secondary offering = The sale of securities by an issuer or underwriter after a company’s securities have already begun trading publicly.
The only way to profit from a secondary offering is to short it if you can catch the announcement early.. So no..

SELLFADE:  noodles move UP and stock MOVES DOWN (see BUYFADE it is the opposite)

SMA = A simple moving average is formed by computing the average (mean) price of a security over a specified number of periods. While it is possible to create moving averages from the Open, the High, and the Low data points, most moving averages are created using the closing price. For example: a 5-day simple moving average is calculated by adding the closing prices for the last 5 days and dividing the total by 5.

Specialist=Slang: AX, An NYSE member who is designated to maintain a fair and orderly market in a specific stock or group of stocks. Specialists prevent imbalances in supply and demand, and they have their own inventory of stock.
   They tend to buy in blocks of 500, 100, 2000 Shares. Look for um. Also called Market Makers

SPOOS=  *n* Slang term for S∓P 500 futures Symb: ES

Spread=diff between buy and ask

Support=In technical analysis, a price level at which a stock has a tendency to stay above
        Sell a stock when it breaks BELOW support level. If its right at it and ticks up, buy.
        Support=buying (see resistance) Buy above support and sell below resistance.
        Support/resistance levels rarely break on the first attempt unless extremely heavy volume.

Short=*n* Selling a stock you do not own in hopes of buying it back at a lower price later on. Your broker lets you 'borrow' these shares and you must return them (hopefully at a lower cost to you). Can Only short on up tick/Make sure stock is in a down trend when shorting (unless doing emini futures)
Short covering is when shares are purchased to replace the shares previously borrowed.  Consider buying puts instead
Be mindful of support levels on charts when shorting. Look at MA's  You can also buy a put if there are no short shares available for borrow.

Short Interest=Short interest is the total number of shares of a particular stock that have been sold short by investors but have not yet been covered or closed out. This can be expressed as a number or as a percentage. NASDAQ high short interest=stock may go up soon, NYSE is more of a bearish sign. You can find this out at nasdaq.com even for NYSE stocks. Dont short an issue having large short interest alrady. The buy to cover will cause a lot of buying to happen driving the price back up.
http://finance.yahoo.com/q/ks?s=MOVI  (where MOVI is symbol u want)

Short squeeze: *n* Occurs when the price of a security rises sharply, causing many short sellers to buy the security to cover their positions and limit losses. That buying leads to even higher prices, widening the losses and squeezing of short sellers who haven't covered their positions. Breakouts start as short squeezes. 1 minute . This is why stocks have to pull back in order to move higher. Most tend to happen when noodles open under 20 band.

Simons, James Harris: - James Harrir Simons. Very wealthy man who runs a hedge fund.
 Ref: http://en.wikipedia.org/wiki/James_Harris_Simons

SLEEPING WITH:  holding an open stock position overnight

-$SPX is S&P 500 Index

Standard Deviation: A statistical study that provides a good indication of volatility. It measures how widely values (closing prices for instance) are dispersed from the average. The larger the difference between the closing prices and the average price, the higher the standard deviation will be and the higher the volatility. The closer the closing prices are to the average price, the lower the standard deviation, and the lower the volatility. Geoff seems good on 13 today.  See chart configuration under day trading notes. *n*
ref: See BBS def too

squawk box - pit audio. terms: http://daytradingthecourse.com/spnotes.doc
Suawk on a regular futures contract is much more useful then the e-mini
Also go to .realtimefutres.com to subscribe to ben. Mention refered by John Carter for 40% discount!

SSS: Same Store Sales - retailers use to report numbres

STICK:  *n* $1/share

STONE:  *n* $1,000

STICKY 5'S LEVELS:  *n* stock prices when they reach increments of 5, subtract .60 and add .60 to the level for the sticky 5's range, eg: at $55.00 - 54.40 x 55.60 is the sticky 5's range, 24.40 x 25.60 is the sticky 5's range, 9.40 x 10.60 is the sticky 5's range) these levels should be considered additional support and resistance levels especially when they test the first time on wider channel panics

stinky 5s  = is the .10 overshoot/undershoot at  .50 levels, 55.40, 55.50, 55.60,  55.60, etc stocks peak momentum at those levels, thus like a catcher be ready to exit into them. If you're at a whole number ie: $55, $56. The .10c over/undershoots are just called coil overshoot levels.

Stop order (or stop):
    An order to buy or sell at the market when a definite price is reached, either above (on a
    buy) or below (on a sell) the price that prevailed when the order was given. Stop to mean "this price or worse."
*Try some buy limit stops out. Good to setup "if" entry and exit scnearos

*ABOUT LOSSES/STOPS:
• Stops are Part of the Game.  Place trail stops below pivots. .10 to .25cent
• Pauses in your Trading. Putting oneself into a position where defeat is impossible.
• Stops based on type of Trade and Premises
• Scalpers - If 1 min stochastics and noodles fail, stop
• Swingers - If 3 minute trends breaks down, stop utilizing 15 pd (period) support breaks
• The Fine Line between Conviction Versus Stubbornness
• 2-1/2 Point levels serve as the immediate support and the next resistance, Premarket too. These are Speed Bumps on Momentum and always areas for entry or Exit
• Stops are an EXPENSE
• Stops are simply a PAUSE in your Trading to Reevaluate - Nothing More

STOCHASTICS OSCILLATOR=Study(pronounced stow-kas-ticks) (p186) Stochastics consists of two lines: %K, which is the basic calculation/main line, and %D, which is a moving average (typically three days) of the %K line. Most charting software offers fast or slow stochastics (that means the %K is smoothed with a value of 1 for the fast and 3 for the slow). Toni default for %K=14 periods with an internal slowing period of 3 periods. Leave software to default for now. Expirment with fast and slow and decide. Stochastics tells us where a securitys price closed relative to its highs over a designated time peroid. Stochastics "sees" the sinking closing prices and alerts by hooking the %K line down and crossing below the %D line in a sell signal. In a bullish parttern the %K comes up from under the %D and crosses to the upside for a buy signal. Dont buy solely based on this tool. Use other indicatiors: MA's, Volume etc..  If you are planning on a core or long trade you may choose to ignore stochastics signal. Its for the shorter term. Fast weights the short term. Slow uses a wider range of data and is considered more reliable.
 a Signals: Buy when %K rises above %D, Sell when %K descends below %D
 a POP: is when %K moves to %D but doesnt touch it then reverses back indicating trend continuing or it can also mean high volume
 a Buy when indicator is below 20 (over sold), Sell above 80 (over bought)
 a Always check VOLUME/OBV in conjunction with this and all tools
 a AlBuy when the %K line pierces through it at an up angle. Not when it lowly intersects at a low angle if this happens you may want to short or see price go south. %K is the fat blue line on esig or 5pd.
One fallback of stochastics is that a stocks price action can register an overbought or oversold signal quickly. If the stock continues to rise without many pullbacks or fall with shallow rallies the indicator "glues itself" to the top or bottom of its scale and can stay there.

 See chart configuration under day trading notes.

syndicate pricing -  Its an IPO or Secondary pricing.

synergies - combined action or operation of multiple things

Technical analysis=Study of charts, moving averages, volume

TIGHTING/TIGHT CHANNELS:  *n* this refers to the moving averages charts, as the 5 and 15 period simple moving averages indicated the trend channel. rule of thumb, when the space between the 5/15 period is less than .15 then it is a TIGHT RANGE--- this usually is light volume and should not be overtraded as there are many headfakes and wiggles

thin = stock with low realative volume, crappy atr, spread wide, routes minimal. If its midday and only traded 100k shares then its very thin.

THREE LANE HIGHWAY: *n* A setup where the 3/13/60 minute stock &  noodles stochastics are moving in the same direction on the noodles and or your stock. Including the 5 & 15 moving averages!! The 3 min will usually turn to indicate entry 3lane highways are prime setups, watch the 60 minute, gauge the 13 min and time entry with the 3 minute.  Use 5 days of data for 60 min chart. 5 Should ride above 15 on longs and below on shorts!!!

THREE PRICE BREAK: Japanese candle stick pattern in which body of 4th candle breaks above the bodys of the previous 3. Ex in chart images directory. *n*

TICKER=Shows all trades going on like an old stock ticker. Uptick transactions are in green, red are downtick. Prints are updated at the bottom. This is true for Time & Sales screen as well.

Time & Sales= Research public trades executed that day (or up to five trading days prior). Uptick transactions are in green, red are downtick. Prints are updated at the bottom.

Top-Down Investing=An investment approach where an investor looks at a country's economy before considering an industry to invest in. Next, they determine what industries or sectors will return well because of the economic conditions and, finally, they then buy stocks that are attractive within that industry.

total/market capitalization=A measure of a public company's size. Market capitalization is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as "market cap". *n*

trade deficit = a negative balance of trade in which a COUNTRY imports more than it exports.

trade lingo; BTO=Buy to open  BTC=Buy to close  STO=Sell to open  STC=Sell to close  SSHORT=Sell Short

Trail Stop
   A trail stop is used for the purpose of keeping your profit when you are trading.  Think of it as a ratchet.  Say you buy a stock at $20 and you place a $.05 trailing stop on the stock that you purchased.  When the stock goes up to $20.50 your exit (sell) point is now $20.45.  So the trail stop will ratchet up 05 behind your stock as it rises to keep you profit. When placing a Trail Stop order, you can place it and walk away.  It will be held on our servers until it is executed.  You do not have to stay logged into Rushtrade platform.  Trail stops do not work during Pre and Post market hours.  Only Limit orders are allowed during these hours.  When executed a trail stop becomes a Market Order.

Using a trail stop on a short is just the opposite of going long the
stock.  If you place a .05c trail stop on a stock that you short for
45.50 and the stock goes down to $45.  Your trail stop (exit position)
is now at $45.05. If the stock decides to rise back up you will buy the
stock back at 45.05 keeping a profit of .45c/ share.

Trail Limit = The difference between a Trail and a Trail limit is that a Trailing stop (Trail) becomes a market order when triggered.  A Trailing stop limit (trail limit) becomes a limit order when triggered. 

Trend = when the 5pd crosses over the 15pd and the bbs's expand on the 8 and 13 min chart then you can say its trending up.  Make sure there is room to the upper bbs for a move. (or lower if your shorting)

TICK=index keeps track of # of stocks ticking up and down +120 means 120 more stocks are ticking up then down. $tick

TRIN=Measures advancing stocks compaired to decling. Medium line is 1.0, under 1 is positive bullish aka buying pressure, over 1.1 is negatative/bearish aka selling pressure.  Abbreviation for Trading Index. $TRIN usually symbol or $TRINQ for Nasdaq. These only update 9:30-4pm

Weekdays = Most stocks seem to gap down friday evening

Tripple-Witching Hour = Slang for the quarterly expiration of stock?index futures, stock?index options and options on individual stocks. Trading associated with the expirations inflates stock market volume and can cause volatility in prices. Occurs on the third Friday of March, June, September and December. Very choppy day!!!!!!!!!! Stay the f out. Take a vacation day.

Options Expiration - Dont trade or use auto systems options expiration day or the following monday

UPTICK = Price change in an upward direction on last trade. EFT, Futures, & Forex are NOT subject to the shorting uptick rules!

UPGRADES/DOWNGRADES = Updated every 20 min in direct web platform. See stragety for trading these

VIX=(VIX) measures the volatility of the market and is used to determine risk. Traders use the VIX as a general inverse indicator of market volatility and sentiment. When the vix rises, the market falls. (like trin) IX values greater than 30 are generally associated with a large amount of volatility as a result of investor fear or uncertainty, while values below 20 generally correspond to less stressful, even complacent, times in the markets.

VOLATILE -  characterized by or subject to rapid or unexpected change. volatility is nice. You can use min and max volititily settings in TRADE IDEAS

volatitily = The up-and-down movement of a security's price over time. The greater the volatility, the greater the chance of a profit or risk of a loss in a short period of time.

Volume Plus = Study Shows the number of shares traded in a stock during a given period
    Red Candlestick--Indicates a negative change in volume for the unit of time selected.
    Green Candlestick--Indicates a positive change in volume for the unit of time selected.
    Blue Candlestick--Indicates no change in volume for the unit of time selected

VWAP=Volume Weighted Average Price, which is calculated by dividing the value of trades by the volume o    ver a given period. A closing 10 minute VWAP is used to set closing prices on the order book.

Warrant=See options

Weekend Effect=A common occurrence in which stock prices tend to be negative Friday through Monday. 69% True verified with charts. Maybe shorting on monday would be a good rule.

Wiggle = Tick against your position (when all the other charts are still going with your trend entry)

Williams %R:  Much like Stochastics, Williams's %R is useful for measuring overbought and oversold stock levels. The scale ranges from 0 to -100 with readings from 0 to -20 considered overbought, and readings from -80 to -100 considered oversold. Typically, Williams's %R is calculated using 14 periods and can be used on intraday, daily, weekly, or monthly data.

Window dressing = Denotes the selling of weak performing stocks or bonds by money managers just before the end of each reporting quarter, so they don't appear as significant investment positions.Window dressing occurs March 31, June 30, Sept. 30 and Dec. 31. Russell rebalancing occurs every year on the last trading day before June 30. Witness the flurry of buys and sells on Friday, especially toward the end of trading hour.

worse for wear = a better trade! (if its a short)

YTM = Yield to Maturity - The rate of return anticipated on a bond if it is held until the maturity date. YTM is considered a long-term bond yield expressed as an annual rate. The calculation of YTM takes into account the current market price, par value, coupon interest rate and time to maturity. It is also assumed that all coupons are reinvested at the same rate. Sometimes this is simply referred to as "yield" for short. *n*