While refining my Emini trading system I've borrowed some terminology from other commentators and invented some of my own. If you've not come across a particular term, you might find it defined here:
Amateurs are characterized by trading smaller volume. Although they might “love” trading they are usually the losers – entering late and getting the trend direction wrong. Also known as the “dumb money” – but this term is not used in this website. The opposite are Professionals.
Fade
A trade that is in the opposite direction of the current move. A common trade is to “Fade the Amateur break out” where the profitable trade is to anticipate a false breakout if it is being led by the Amateurs – who are usually the losers. See “RAMBO”.
Refers to exhaustion volume that finally "flushes out" the last sellers before an up trend can begin (or last buyers before a down trend). Builds on the principle that markets bottom when all the sellers have sold (and markets top when all the buyers have bought).
Volume pattern frequently seen at market tops. It indicates a lack of buyers able to push prices higher. The reverse pattern at market lows is the No Supply volume pattern. The term was originally coined by Tom Williams in his VSA methodology.
Volume pattern frequently seen at market bottoms. It indicates a lack of sellers able to push prices lower. The reverse pattern at market tops is the No Demand volume pattern. The term was originally coined by Tom Williams in his VSA methodology.
Professionals are characterized by trading larger volume. They make their living trading and are usually the winners – entering early and getting the trend direction right. Also known as the “smart money” – but this term is not used in this website. The opposite are Amateurs.
Abbreviation for "Reversal of Amateur Break Out". Shown on Emini-Watch.com charts with "R" text. Break outs to new highs or new lows lead by the Amateurs are often suspect. The RAMBO volume pattern is a reversal signal but needs confirmation with other indicators such as price cycles, exhaustion volume and declining volume momentum.
Volume pattern that shows a trend move is slowing down and traders are taking profits. Shown on Emini-Watch.com charts with "St" or "St*" text. The term was originally coined by Tom Williams in his VSA methodology.
