Terminology

A *body* close beyond the most recent swing in the direction of the existing trend. Confirms continuation.

A smaller-scale structure shift — often the LTF cousin of MSS — signaling intent to reverse.

A swing high that is *above* the previous swing high. Part of bullish structure (paired with HL).

A swing low *above* the prior swing low. The 'defended' side of a bullish trend.

A swing high *below* the prior swing high. Part of bearish structure (paired with LL).

A swing low *below* the prior swing low. Confirmation of bearish continuation.

A body close beyond the *opposing* swing — the trend just changed direction.

A bar whose high (or low) is more extreme than the bar on each side. The fundamental unit of structure.

Stops resting *above* swing highs / equal highs. These are *short* stops — when triggered, they buy.

Two or more highs (or lows) at roughly the same price — a magnet for stops above (highs) or below (lows).

Pools of resting orders (typically stop losses) at obvious levels. Big players need these orders to fill size.

A fast push beyond an obvious level that clears resting stops, then reverses.

Stops resting *below* swing lows / equal lows. These are *long* stops — when triggered, they sell.

A failed order block that flips role — bullish OB that fails becomes bearish supply, and vice versa.

A strong, body-driven candle that breaks structure — the signal that institutions moved size.

An imbalance between the wick of bar 1 and the opposite wick of bar 3 in a 3-candle sequence — formed by displacement.

Time windows when liquidity moves and high-quality setups print — typically London open, NY open, NY PM.

A structural retest where prior imbalances are partially or fully closed by price.

A defined retracement zone (62%, 70.5%, 79%) where institutional re-entries cluster.

The last opposing candle before a strong displacement — typically the institutional footprint.

Accumulation, Manipulation, Distribution — the three-phase shape of most meaningful trading days.

Within a dealing range, upper half = premium (sell), lower half = discount (buy). Equilibrium is the midpoint.

A candle where open ≈ close — pure indecision. The wicks tell the story, not the body.

A candle whose body fully covers the previous candle's body — strong shift in control.

A candle with a long wick rejecting one side and a small body opposite. Wick should be ≥ 2× body.

Two equal extremes failing at the same level. Reversal confirmed once neckline (the trough/peak between them) breaks.

Three-peak reversal pattern: left shoulder, higher head, lower right shoulder, broken neckline.

A body close beyond a meaningful level (S/R, range edge, neckline) with displacement.

An LTF signal (rejection candle, MSS, CHoCH, structure shift) inside the HTF zone that triggers entry.

A counter-trend move within an established trend — typically a retrace into structure before continuation.

Price returns to a broken level (former support/resistance) before the move continues.

1R = the dollar amount you risked on a trade. A 2R win = 2× your risk.

The maximum % of your account you'll lose if a single trade hits its stop. Typically 0.25-2%.

Ratio of risk taken to reward sought — 1:2 means risking 1R to make 2R.

The price level at which you exit a trade for a defined loss. Placed using structure, not emotion.