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.
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.