[Clayton233]

A glossary of the common jargon/lexicon/abbreviations etc

Note: To add a term please don't quote the previous post, instead simply do a "quick reply" including only the term (in bold) followed by a dash and the description.


PL - our fearless leader Pretzel Logic from his Hawaiian command post/bunker

EW - Elliot Wave
TA - Technical Analysis
TL - Trend Line
LD - Leading Diagonal
ED - Ending Diagonal
H&S, H/S or HnS - Abbreviations for Head and Shoulder Pattern
Impulsive, or "a 5 wave" - EW Motive moves that follow a 5 wave pattern that progresses the market in a given direction.
ABC, or "a 3 wave" - EW Corrective moves that follow a 3 wave pattern.


EOD - End Of Day
ROD - Rest Of Day

LOD - Low Of Day
HOD - High Of Day

ST - Short Term
IT - Intermediate Term
LT - Long term

RUT - Russell 2000 Index
TZA - popular triple short ETF of the RUT
TNA - popular triple long ETF of the RUT
ES - E-mini S&P Index Futures (usually ~4 points lower than $SPX)
ES/5, ES/15, ES/120 - ES 5, 15, and 120 minute charts respectively


80>>120 Rule -

If we hit plus 80 on the $INDU we will go to plus 120

If we hit 120 we go back to 80,

this next part has not been working lately

from plus 80 we go then back to 120 and finally to 140 up.
same for down moves

A Katzo! - a big red candle

WWWCI - Wrong Way Wanda Contrarian Indicator - A very strong signal whose name says it all...

"Blimbo Wave" - A term coined by Pretzel Logic that identifies a wave that is in limbo meaning it doesn't really provide any new clues into the market's intentions as it just retraces some portion of the previous wave. Here is the origin of the term in the (sarcastic) words of our fearless leader on May 1st:

Well, if my ST count's right, then the final 5th wave completed of either wave (1) or wave C... although today may have instead seen the completion of Wave "Blimbo," which is a new wave I just invented as part of my upcoming PretzelWave Postulate Hypothesis Theory Thesis, which is my own take on EWT, to be marketed worldwide starting next Thursday between 4 and 5 o'clock.

Blimbo waves are characterized by an extremely high degree of grumbling, which is exactly what we saw today. It also retraced, almost to the *penny*, exactly the amount expected in a Wave Blimbo (Wave Blimbo frequently retraces between 1% and 99.9% of the previous wave -- BOOM! Dead-on hit!), which lends a lot of credence to that view. Probably the clincher though, is that Blimbo Waves are date-specific, and can be expected to occur only on weekdays. I don't think it's coincidental that today happens to be Tuesday. The other details of what to look for in Blimbo Waves will all be revealed in my upcoming book:

The PretzelWave Postulate Hypothesis Theory Thesis Principle Idea Thing

which is scheduled to hit bookshelves everywhere sometime before the sun turns into a red giant. Anyway, it looks like wave 5 of Blimbo finished up at 1415 today.

troll - A bitter, angry and emotional person who floods/spams the forum with obscenities, insults or warrantless attacks


Notable PL'isms -

• "1415 is prolly the high" - ignore the superfluous financial journalism stuff that come after such an announcement and short the market.
  
• "I am getting short and going to bed" - seriously ignore everything else and sell the hell out of the market.
  
• "Trade above/below X level would invalidate the count" - designates where the market should be going, if major trend is down sell at that point and vice versa.
  
• Trade Triggers - posted in PL charts are triggers that, when materially broken are as close to a sure thing you can find in this business. Use them to trade in the direction of the trigger and observe the target.
  
• Blue Box Protocol - despite funny commentary from No Damn Viagra - these areas on a chart are highly accurate target points that can and should be used to trade from only after understanding and confirming the trend that goes with the preceding wave that these boxes are targeting.
  

And the most important 'ism of all:
"NOT TRADING ADVICE!" - take personal responsibility and accountability for your trading, do your OWN analysis/research and confirmations. You care the most about your money, so TRUST NO-ONE when it comes to your financial future!

[davezarling]

EW - Elliott Wave
H&S - Head & Shoulders Pattern

[JuiceBoxBoy]

VST - Very Short Term
T-B TA - Testosterone Based T&A (hint: doesn't work, do the opposite!)
billa (i.e. zokat, oztak) - the opposite of a 'katzo', a big green candle
DOM - Depth of Market - a reading gathered by observing the bid/ask and quantities at each price level - a tool katzo7 employs as part of his ES trading.

[GoF1sh]

Any help with "blimbo wave"?

[Clayton233]

Any help with "blimbo wave"?

Updated for the blimbo wave - which is sarcastic for a wave that retraces the previous wave somewhere between 1 - 100%... a.k.a. whip saw, flat mess, etc...

[Pretzel Logic]

RTH = Regular Trading Hours (i.e.- the cash market, not futures)
BBB = Bollinger Band Breakout/breakdown
GTFO = Get The (Fornicate) Out -- market's about to go down hard

[homeyG]

BTFD - Buy the fookin' dip

[Clayton233]

BE or B.E. - Break Even
COT - Commitment of Traders

[LaClerk]

More general terms -

SL - Stop Loss or the difference between trading and gambling
HFT - High Frequency Trading
PPT - Plunge Protection Team
TPTB - The Powers That Be
QEInfinity - Term coined by PL in late summer 2012 to describe the Fed's policy. The term has now become commonplace on the web, but it was used here first!

DWA specific terms -

Batman - IHS pattern, please see next post for full explanation.
The Beard - PL's term for Ben "The Beard"
Ben's Helicopter - The machine DWA members imagine the Fed chairman uses to drop all the money he prints.
The Demon - Jamie Dimon or JPM in general.
Bastage - Affectionate term for DWA forum members. PL derived it from a movie quote:

"Bastage"... (you have to click the link, 'cause the video has embedding disabled for whatever reason):

http://www.youtube.com/watch?v=6GVCgTFw2Qk

Here's a video of Roman Maroney that I CAN embed, but it lacks the "Bastage" reference...

[LaClerk]

What the heck is a Batman? Well, one day oneiron12 decided to amuse himself by doodling on a chart of an IHS pattern. Voila! Ever since the term has confounded newcomers to DWA who google the term and can't find it anywhere. I'll let the master explain:

Beware.....danananananana
   


someone had PM me and asked what is the batman pattern... simply put it is an inverse head and shoulders pattern or IHS as they sometimes get referred to.....but it doesn't quite fit the technical/classic criteria for Technical Analysis... the best I can figure is that if human beings were still trading stocks is you would get more of a classic look but the computers that are trading this market tend to work faster and complete the patter before it fully fills out... hope that helps...

it also has become a symbol for us bears to be cautious and consider the possibility that what we think is the beginning of a really nice impulsive move to the downside...gets stick saved and builds the right wing of the caped crusader... here is the classic rules for Head and shoulder patterns:

Example:
   

The Head and Shoulders Bottom, sometimes referred to as an Inverse Head and Shoulders, is a pattern that shares many common characteristics with its comparable partner, but relies more heavily on volume patterns for confirmation.

As a major reversal pattern, the Head and Shoulders Bottom forms after a downtrend, and its completion marks a change in trend. The pattern contains three successive troughs with the middle trough (head) being the deepest and the two outside troughs (shoulders) being shallower. Ideally, the two shoulders would be equal in height and width. The reaction highs in the middle of the pattern can be connected to form resistance, or a neckline
The price action forming both Head and Shoulders Top and Head and Shoulders Bottom patterns remains roughly the same, but reversed. The role of volume marks the biggest difference between the two. Generally speaking, volume plays a larger role in bottom formations than top formations. While an increase in volume on the neckline breakout for a Head and Shoulders Top is welcomed, it is absolutely required for a bottom. We will look at each part of the pattern individually, keeping volume in mind, and then put the parts together with some examples.

1.Prior Trend: It is important to establish the existence of a prior downtrend for this to be a reversal pattern. Without a prior downtrend to reverse, there cannot be a Head and Shoulders Bottom formation.

2.Left Shoulder: While in a downtrend, the left shoulder forms a trough that marks a new reaction low in the current trend. After forming this trough, an advance ensues to complete the formation of the left shoulder (1). The high of the decline usually remains below any longer trend line, thus keeping the downtrend intact.

3.Head: From the high of the left shoulder, a decline begins that exceeds the previous low and forms the low point of the head. After making a bottom, the high of the subsequent advance forms the second point of the neckline (2). The high of the advance sometimes breaks a downtrend line, which calls into question the robustness of the downtrend.

4.Right Shoulder: The decline from the high of the head (neckline) begins to form the right shoulder. This low is always higher than the head, and it is usually in line with the low of the left shoulder. While symmetry is preferred, sometimes the shoulders can be out of whack, and the right shoulder will be higher, lower, wider, or narrower. When the advance from the low of the right shoulder breaks the neckline, the Head and Shoulders Bottom reversal is complete.

5.Neckline: The neckline forms by connecting reaction highs 1 and 2. Reaction High 1 marks the end of the left shoulder and the beginning of the head. Reaction High 2 marks the end of the head and the beginning of the right shoulder. Depending on the relationship between the two reaction highs, the neckline can slope up, slope down, or be horizontal. The slope of the neckline will affect the pattern's degree of bullishness: an upward slope is more bullish than a downward slope.

6.Volume: While volume plays an important role in the Head and Shoulders Top, it plays a crucial role in the Head and Shoulders Bottom. Without the proper expansion of volume, the validity of any breakout becomes suspect. Volume can be measured as an indicator (OBV, Chaikin Money Flow) or simply by analyzing the absolute levels associated with each peak and trough.

◦
Volume levels during the first half of the pattern are less important than in the second half. Volume on the decline of the left shoulder is usually pretty heavy and selling pressure quite intense. The intensity of selling can even continue during the decline that forms the low of the head. After this low, subsequent volume patterns should be watched carefully to look for expansion during the advances.

◦
The advance from the low of the head should show an increase in volume and/or better indicator readings, e.g., CMF > 0 or rise in OBV. After the reaction high forms the second neckline point, the right shoulder's decline should be accompanied with light volume. It is normal to experience profit-taking after an advance. Volume analysis helps distinguish between normal profit-taking and heavy selling pressure. With light volume on the pullback, indicators like CMF and OBV should remain strong. The most important moment for volume occurs on the advance from the low of the right shoulder. For a breakout to be considered valid, there needs to be an expansion of volume on the advance and during the breakout.

7.Neckline Break: The Head and Shoulders Bottom pattern is not complete, and the downtrend is not reversed until neckline resistance is broken. For a Head and Shoulders Bottom, this must occur in a convincing manner, with an expansion of volume.

8.Resistance Turned Support: Once resistance is broken, it is common for this same resistance level to turn into support. Often, the price will return to the resistance break, and offer a second chance to buy.

9.Price Target: After breaking neckline resistance, the projected advance is found by measuring the distance from the neckline to the bottom of the head. This distance is then added to the neckline to reach a price target. Any price target should serve as a rough guide, and other factors should be considered, as well. These factors might include previous resistance levels, Fibonacci retracements or long-term moving averages.

[BenedictArnold]

And coming to a bear market near you. The opposite of BTFD

STFR- Sell The Fookin' Rip

[algaeman]

And coming to a bear market near you. The opposite of BTFD

STFR- Sell The Fookin' Rip

I still like "Short This Pig" - or STFP! Katzo left out the "F" part when he originated the expression for this esoteric market maneuver.

[wblscott]

ELE - Extinction level event. A trade so large, that if it goes wrong, it can devastate your account. Think of the meteor missing the Yucatan Peninsula and hitting your trading account instead.

[homeyG]

R/R?

[oneiron12]

R/R?

Risk Versus Reward