Some Chat Room Terminology

XYZ at the 2/8 – This refers to the 2 minute candle 8 period moving average. A really strong stock tends to bounce of this area after a pullback.

XYZ at the 5/8 – This simply refers to the 5 minute candle 8 period moving average. A strong stock tends to bounce in this area after a pullback. You may also hear us talk about the 15/8 (which means the 15 minute candle 8 period moving average) or the 5/20 (which means the 5 minute candle 20 period moving average)….etc. You get the idea…the first number is the candle time frame and the second number is the moving average. When these comments are posted it usually implies we are watching the stock for a possible bounce in the area alluded to.

XYZ r/s – This means stock XYZ is exhibiting relative strength…it’s acting stronger than the overall market and should be on a chart for possible long setups later.

XYZ Squinky – A term stolen from the TV show ‘Friends’ which means stock XYZ is acting erratic and will probably be very tough to trade.

XYZ reverse 15s idea – This refers to stock XYZ being a possible short idea (we use the word ‘reverse’ to imply the opposite of one of our long setups). In this example we would be looking to go short on XYZ the first break of a previous 15 minute candles low with a stop above the previous 15 minute candles high. We may also use the terms reverse 30s etc.

pfpd/shape – This stands for ‘potential final push down’ which is a distinct shape and volume change on the chart that may be a stock putting in its low for the day.

XYZ 2’s idea – This simply means I’m using 2 minute candles and will be taking a long entry the first time it breaks a previous 2 minute candles high with my stop below the previous candles low (think stairsteps). This same idea applies to all time frames so you might see XYZ 5’s idea, XYZ 15’s idea, XYZ 30’s idea etc.