Glossary

Note: This short list is not all inclusive but will cover a majority of the terminology that is included in the chart text.

(DMA) Daily Moving Average

1 bar point (pt.) is a proprietary system price level on the chart which can be either above or below the current market price, either offering resistance or support.

Buying Exhaustion-occurs when buying pressure dries up and is identified by the closing price being well below the days high price.

Bearish Divergence – is when the recent price has moved higher than a previous swing high but the technical indicators are weaker than the previous highs indicator, therefore prices are poised to move lower. Divergence that appears on the charts is a leading indicator or warning signal of a probable change of direction.

Bullish Divergence – is when the recent price has moved lower than a previous swing low but the technical indicators are stronger than the previous lows indicator, therefore prices are poised to move higher.

Closing Price Reversal-Is a technical pattern that signals a change in trend. Normally is most significant after a pro longed move.

Cycle convergence – is when two or more of the four different market cycles that I follow align on (or within the cycle window) the same date which increases the odds for a change in price direction.

Doji Star – when the daily open and close are the same price. This also signifies either indecision by the trade or potentially the end of the current trend.

Fibonacci Retracements-are levels that correspond with percentage retracements occurring in the ebb and flow of a market trend. The retracement numbers used are 24,38,50,62, and 76%.

Futures Months used

(F) January
(H) March
(K) May
(M) June
(N) July
(Q) August
(U) September
(X) November
(Z) December

Indicators Used-The three main technical indicators I use are Williams %R, MACD, and Slow Stochastics. There are several more that I will periodically monitor or cross check with market action.

Key Reversal-A technical pattern that signifies a change in trend. This type of reversal is not as common as a “CPR” closing price reversal. Normally is most reliable after a prolonged move.

Selling Exhaustion-occurs when selling pressure dries up and is identified by the closing price being well above the days low price.