Glossary

Every acronym on the site, explained.

Structure

BOSBreak of structure: A break of a high or low in the direction of the current trend. It confirms what was already happening.
CHoCHChange of character: A break of the last low or high that was protecting the trend. The first sign it’s changing.
MSNR: A 15-minute structure level where price turned recently. Used as an entry zone, like an order block.
HTF / LTFHigher / lower timeframe: Higher timeframe (4h, 1h) and lower timeframe (5m, 1m). The first decides direction and zone, the second only the timing.

BSLBuy-side liquidity: Buy orders resting above the highs: sellers’ stops and breakout buys.
SSLSell-side liquidity: The same below the lows, as sell orders.
Draw on liquidity: The pool of liquidity price is drawn toward. It’s the direction of the day, and the first thing to establish.
Sweep: Price trades past a level, fills the orders resting behind it, then comes back. Not to be confused with a breakout, which doesn’t come back.
Inducement: The low (or high) left by the first contact with an order block, when that contact doesn’t reach the zone’s 50%. Sweeping it creates the Protected Low (or High).
Protected Low / High: The new extreme created when price sweeps the inducement. It’s assumed to be protected: it’s the pivot, you trade away from it, with the stop just beyond.
SMTSmart money technique: A divergence between two correlated markets, NQ and ES for example: one sweeps a low or a high, the other refuses to. It flags an inconsistency in the market.

OBOrder block: A whole candle, wick and body: the last opposite candle before an impulsive move that breaks structure. The zone runs from wick to wick, with its 50% drawn through the middle.
Rejection block: A candle with a long wick followed by a big body. The zone is the wick alone, with its 50%, where an order block takes the whole candle.
Breaker: An order block that failed: price traded through it. It then switches role and works in the opposite direction.
Mitigation: Price returning to a zone that’s already been used, to fill the remaining orders. A mitigated zone isn’t traded again.
0.5Equilibrium: The exact midpoint of a price leg. Above it is premium, which is expensive; below it is discount, which is cheap.
Daily open: The day’s opening price. Often acts as a pivot that manipulations are built around.

AMD: Accumulation, manipulation, distribution. The three-part shape most days take.
Killzone: The time window where a setup has a chance to form. Here: 2 to 5 a.m. and 7 to 10 a.m. New York time.
Asian range: The price range formed during the Asian session. Its two boundaries serve as levels for the European morning.
PWH / PWLPrevious week high / low: The previous week’s high and low. Two major pools of liquidity, and the usual targets of trend trades.
PDH / PDLPrevious day high / low: The same for the previous day.

R: The trade’s risk used as a unit. A trade that makes twice what it risked is 2 R. The only honest way to compare trades of different sizes.
SL / TPStop loss / take profit: The order that cuts the loss and the one that takes the profit. Both are placed before entering, never after.
NQ / MNQ: The futures contract on the Nasdaq 100 and its micro version, ten times smaller. Every worked example on the site uses them.
Point: NQ’s unit of price movement. A 20-point stop means that unit, not a percentage.