Glossary Complete

A false bearish signal that induces short positions before a violent rally. Retail liquidity hunt.

The last bullish candle before a strong bearish impulse, a potential short entry zone.

Selling a short-term option + buying the same strike at a longer expiration. A theta decay strategy.

The number of days needed to cover all short positions at average daily volume.

A bearish crossover between a short-term and long-term moving average, the opposite of a golden cross.

The price level at which a long or short position is opened.

The financing rate in the perpetual futures market. Positive = longs pay shorts, and vice versa.

Selling an asset short expecting the price to fall to buy it back at a lower price.

A hedging operation to reduce the risk of another open position. E.g., short on a positive correlation.

A measure of money supply including cash, deposits, and short-term instruments. An indicator of systemic liquidity.

The difference between long and short positions. Indicates the net directional risk of the portfolio.

An imbalance between buy and sell volume in the order book, often anticipating short-term direction.

Long the weaker and short the stronger of two correlated assets. A market-neutral strategy.

The area above 50% Fibonacci. Ideal zone for shorts in the ICT model. 'Expensive' price.

The return on a risk-free investment. Typically short-term US T-Bonds (3 months).

Selling an asset short expecting the price to fall to buy it back cheaper.

The percentage of a stock's shares sold short. High short interest = potential squeeze.

An explosive bullish move that forces short sellers to cover their positions, amplifying the rally.

Selling a call and a put at the same strike. Gains from low volatility. Theoretically unlimited risk.

A sequence of short impulses and pauses forming a step-like structure in an orderly trend.

The overnight rollover rate for long (swap long) and short (swap short) positions.

A combination of a bought put and a sold call at the same strike, replicating the exposure of a short position.

Triple EMA: shows the percentage change of a triple EMA. Filters short cycles and noise.

A Fed policy that sells short-term securities and buys long-term securities to lower long-term rates.

Using VWAP as a bias level. Long above, short below. Entry on VWAP retests.

When short-term rates exceed long-term rates, historically one of the most reliable recession signals.