Glossary of Commonly Used Terms

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.

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).

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.

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.

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.

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.