View: FirstWave Club Glossary | Journey into Wall Street

Originally Posted: 11/22/2006 12:44:06 PM by CJTrader  

FirstWave club - Glossary of commonly used terms and Acronyms.  A lot of members use short-hand here in the club to reduce typing.The list below includes some of our commonly used acronyms and abbreviations. This should help our new members get upt to speed.  

We often refer to prices and/or targets on the Dow-30 without always using the Symbol DJ-30 (sorry) The Dow-30 is one of the most often referred to indexes in this club.  We try to use all CAPITAL Letters for all symblols, to help make them easy to see.  Many of the Indicators and Patterns used in this club come from David Elliott's (aka FirstWave) educational materials (live chats, CDs, and seminars).  

ADD, AD/D, AD/DC, Adv/Decl = the NYSE Advance/Decline index, calculated by taking the number or NYSE listed Stocks up today minus the number down for the day. On TCNet this symbol is $NYAD for the NYSE stocks, and $NSAD for the NASDAQ stocks.  

VOLD = NYSE Up volume less Down volume for the day. (like Adv/Decl but based on Volume, not price data).  

YM = is the mini-Dow Futures ($5) contract symbol (YM quotes not available on TCNet) For contract specifications visit http://www.cbot.com/cbot/pub/cont_detail/1,3206,1560+14425,00.html  

DBK = 'Doji Bull Kicker' a 2 candle pattern, with a Doji neutral candle at support, followed by a gap up strong Bullish up Candle. This is one of FirstWaves Favorite Patterns, especially when it occurs at a major moving average.  

A-Team = a fun name CJTrader gave a set of Market Internals to help remember and talk them ... (such as VIX, Adv/Decl, TICK, VOLD, etc.) These help us see short term momentum chages in the overall markets. More powerful when they work together as a team. Very helpful for Day Traders and Scalpers.  

Donuts = a fun name CJTrader chose to talk about the tendancy of Price to bouce or often find some degree of support or resistance at 'Round Numbers', such as when DJ-30 approaches 12,300 or 12,400 etc. as well as when you may see some support or resistance when the daily 'Change' is a round number (eg. DJ-30 up by +100, +200 or down by -100 or -200) etc. 

Ivan - 'Doing a Crazy Ivan' (from the Movie Red October). A fun way that AlanOjai came up with to describe the observation, where either markets may reverse, or a random movement out of chop, or an accelleration from a slower movement may occur near the top or bottom of the hour. 

CLM = Counter Lunch Move, the price retracement of part of a move that occurred during the lunch hour ( ref. USA East Coast time =   New York City   time). Starts at 1PM EST ENDS 1:20-1:30pm .  

SBU = Snap Back Up

SBD = Snap Back Down

Snappa = Snap Back Pattern (aka Snapper) Ref. SnapBack CD from http://www.wallstreetteachers.com

S O H = Sit On Hands... often an underutilized strategy, is to Not trade, effective at retaining ones capital when your 'Edge' (favorite trading pattern) does not exist. Be Patient...and wait for Your low risk / high odds opportuntiy to form. 

NH = New High, usually refering to a Higher High was just made in price

NL = New Low, usually refering to a Lower Low was just make in price

LOD = Low Of the Day, example use: new HODHOD = High Of the Day

LOY = Low Of the Year, example use: new HOYHOY = High Of the Year 

ORL = Opening Range Low

FNH = Failed New High, what may have started as a continuation pattern in a bullish trend, fails to make a new High, thus becoming a reversal pattern, for a new Bearish trend.

FNL = Failed New Low, what may have started as a continuation pattern in a bearish trend, fails to make a new Low, thus becoming a reversal pattern, for a new Bullish trend. 

ATH = All Time High, example use; New ATH for a new Highest price that stock or index has ever seen.  

Chop = Prices remaining within a narrow range for a period of time.

Consolichop = a term created by CJTrader to describe the pattern Price makes when it is in a consolidation pattern, or a Wedge, as it chops back and forth in a narrow or narrowing range.

Wedgee = another name for price consolidation pattern, same as 'Consolichop'  

SMA = Simple Moving Average

MA = Moving Average, simple moving average implied unless otherwise stated  

DJ 5/50 = Dow-30 at or near the 5min. 50 period Simple Moving Average. minutes are implied unless otherwise stated

DJ 2d/50 = Dow-30 2 day 50 period moving average (same as 100day moving average)

IBM 60/200 = IBM at or near the 60 min or 200 hour simple Moving Average  

DING = A target has been hit

Weeee = the joy of seing the market accellerate our way.

IHF = Ice Hole Failure, price testing and failing at the 50 period moving average from below Ref. MAP CD from http://www.wallstreetteachers.com 

 ABOT50 = The opposite of an ice hole failure, thus A Bounce Off The 50 moving average from above 

Key Reversal = A key reversal day marks an important turning point on a chart but it cannot be correctly identified until prices have moved significantly in the opposite direction to the previous trend. A top reversal day is defined as when a new high has been set in an uptrend and is followed by a lower close than the previous close. A bottom reversal day would be a new low followed by a close above the previous day''s close. 

RC = Roses and Chocolates, or RCF = Roses Chocolates and Flowers, Refers to a story that FirstWave tells as a way to help teach MAP moves, where the underside of a 50 period Moving Average may be tested and rejected the first time, but then may break above the 50 Moving Average on a later test.  

PII or P.I.I. = Price is Ignoring an Indicator . . . a condition that FirstWave teaches, that usually only last for a brief (intraday) period, where an indicator appears to be in a direction opposite with Price behavior, but then later, when the indicator reverses, sets up for usually a strong move in the opposite direction.  

2x4 = a fun visual image CJ got from the arcade game called 'whack-a-mole'. Where you use a mallet to hit the mole on the head when it pops its head out. A similar idea of when Price pops its head up to test a 50 period (or major) Moving Average, as a possible Ice Hole Failure pattern then we look to hit price on the head with a 2 x 4 piece of lumber, to get it to fall back down. (as if that's how it really worked. ;-) ) 

Whack = the sound of a 2x4 connecting with Price ;-) Used when the A TEAM is acclerating negatively

Poooosh = When A Team is accellerating positively 

Mongo - Someone able to really swing that 2x4 (from the Movie Blazing Saddles) 

MAP = Moving Average Price Pattern. Patterns recognized and taught by David Elliott (relationships formed around Major Moving Averages and all time periods). See http://www.WallStreetTeachers.com for the 'MAP CD'  

MOBO = Momentum Break OutRef. MOBO CD from http://www.wallstreetteachers.com 

NHSNHUFNH = the tendancy of prices in an up trend, where New Highs Suggest more New Highs, Until they Fail to make a New High. a quote by FW.  

NLSNLUFNL = the tendancy of prices in a down trend, where New Lows Suggest more New Lows, Until they Fail to make a New Low. a quote by FW. 

SOAP = Served On A Platter pattern Ref. SOAP CD from http://www.wallstreetteachers.com  

STAMP = STochastics AMPlified, 

Ferarri = a STAMP pattern for a fast market move 

Chevy Suburban = a STAMP pattern for a sure and steady move in the market 

Yugo = a STAMP pattern for a slow drifting move in the market, (with some help from gravity) 

Hockey Sticks, HS , reference to the buy and sell patterns from short term TSV signals and Elliott Predictive Price Volume indicator ( Tradestation users).  

SHANGHAI DUO = This is not in any book as a combination pattern, it was invented here. David Elliott identified the combination pattern of a Doji and hanging man candlestick pattern as being an important TOP and BOTTOM indicator. Named after the Movie Shanghai Knights This is a candlestick pattern of Jackie Chan and Clint Eastwood, Chan the Doji, and Eastwood the Hang em High Hanging man. The combination of these two candles at new market highs usually signal a sell signal. The signal is confirmed by price the next day. The combination of these two candles at new market lows usually signal a buy signal . The signal is confirmed by price the next day. SOAP, FLATS, and SNAP BACKS can also confirm these reversals. THIS WAS FIRST PRINTED IN DAVID ELLIOTT'S AET CLASSES,THEN PUBLISHED IN 2004 ON TCNET AND OUR YAHOO SITE.    

Pivots : Are calculated on prior period price data. Daily, weekly and monthly are commonly used. Pivots are used to identify price values where it may be likely to find future Support and/or Resistance. You can read up on Pivot Points and how they are calculated in various books on Technical Analysis, or, by doing a search on the words 'pivot point' at http://www.investopedia.com with equations posted at http://www.investopedia.com/articles/technical/04/041404.asp other educational web sites. Daily and weekly values for key indexes and futures are posted at http://www.mypivots.com/DailyNotes/dailynotes.aspx  Unless otherwise stated, 'daily' pivot levels are implied. Weekly or Monthly pivot levels would be identified as such. R3 = Pivot, Resistance level 3R2 = Pivot, Resistance level 2R1 = Pivot, Resistance level 1PP = Pivot Point, the average of the prior period' High, Low and Close pricesS1 = Pivot, Support level 1S2 = Pivot, Support level 2S3 = Pivot, Support level 3

Wave 3 = W3 short hand  

Zamboni - The name of the machine used to groom the ice in an ice rink. A fun way CJ came up with to describe when Price is dragging along the 50 Moving Average.... Dragging the ice. I am sure there are plenty more acronyms and abbreviations used in our club, but this should be a good start. I will add to this list as needed.