Glossary of Commonly Used Terms
Nexgen's chat room will use many of these during a session
Nexgen's Common Trading Terminology:
Trading Concepts & Risk Management
STOP – RISK: The price or amount of money you will risk on a trade.
TICKS – PIPS – POINTS: The smallest price increment for an instrument. Example: “I made 20 ticks on that trade” or “I lost 8 ticks on that trade.”
TARGET PROFIT EXIT: The price at which you will exit your position with a win.
BE (Break Even) – NO RISK – BE+1: Moving your stop to a no-risk position in a trade.
GRACEFUL EXIT: Exiting a trade when conditions change against your position to avoid a full loss.
Fibonacci & Market Structure
Fibonacci Support: A Blue horizontal line indicates a support area.
Fibonacci Resistance: A Red horizontal line indicates a resistance area.
Synthetic Fibs – Triggers – Divergences – Mid Bands: Indicators from a different chart plotted on the current chart.
HVA Support/Resistance (Line): Market flow green or magenta lines derived from white paint bars on the T3 Market Flow chart, defining key support or resistance.
Mid Band: A green or magenta 55-period moving average line running in the middle of the chart.
Support (General): Any area that may cause the market to bounce up (e.g., mid-bands, trigger lines, Fibonacci levels).
Resistance (General): Any area that may cause the market to bounce down (e.g., mid-bands, trigger lines, Fibonacci levels).
Trigger Lines & Market Trends
Triggers: T3 Trigger Lines, including small, large, and synthetic triggers.
Small Triggers: The fastest-moving trigger lines (20-period average).
Large Triggers: Medium-fast triggers (38-period average).
Synthetic Triggers: Larger triggers from a higher time frame, visually "stair-stepping" up and down.
Trigger Line Configurations
Strong Look (#1 Look): All triggers are strongly crossed up or down. The small trigger will always be above all others in an uptrend and below all others in a downtrend.
Transition Look: Small triggers cross above or below all other triggers for the first time, signaling the start of a trend.
Weakening or Inside Look: Small triggers move "inside" larger triggers, signaling a possible trend slowdown.
Range Bound – Choppy – Chop: Small triggers are between large and synthetic triggers, indicating a market with no clear trend.
Key Price Levels & Patterns
Yellow Dots – One-to-Ones: Fibonacci projection of 100%, marking general support or resistance.
Small Swing One-to-Ones: Magenta dots, representing 100% projections from smaller swings plotted by the T3 Fibs ProTrader.
Divergence Lines (-#): Lines plotting on top or bottom of bars, showing divergence between T3 MACD BB lines and price.
Reversal Bar Marker: The price level at which a new bar in the opposite direction will form.
Trading Terms & Execution
Bingo: A term used when a profit target has been reached and filled.
Runner: A fraction (usually 25-50%) of contracts left in a trade to capture larger profits, typically in strong trends.
Long – Buy – Enter Long: Entering a position expecting prices to increase.
Short – Sell: Entering a position expecting prices to decrease.
Trade Probability & Management
High-Probability Trade: All indicators across multiple charts align with trade rules.
Medium-Probability Trade: Most indicators align, but a small issue exists (e.g., a trouble spot ahead).
Low-Probability Trade: The trade setup has multiple conflicting signals, reducing the chance of success.
Market Conditions & Special Cases
Termination Area/Condition: A chart condition indicating a high probability of trend reversal.
Limit Order – Entry: Placing an order at a specific price before the market reaches it.
Gap – Big Gap – Gap to Synthetics: The market is at support/resistance while synthetic triggers are far away.
Retracement – Pullback: A temporary price movement against the primary trend.
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