PivotBoss Glossary

Trader Jargon and Terminology

  1. Absorption: Occurs when aggressive market participations enter the market, but price doesn’t budge, indicating larger timeframe passive participants are absorbing market orders using limits (see also Iceberg).
  2. Acceptance: Occurs when price is perceived as fair among buyers and sellers within a balanced range.
  3. Aggressive Buyer: A market participant who buys using a market order (see also Lifting the Offer)
  4. Aggressive Seller: A market participant who sells using a market order (see also Hitting the Bid)
  5. Balance (Bracketed): Balanced ranges develop when the market establishes value, thereby offering fair facilitation of trade between buyers and sellers.
  6. Bids: Buy orders
  7. Demand: Buyers
  8. Discount: When price is below value.
  9. Flush: Occurs when the market must “flush” the stops in one direction in order to remove stops in the opposition (and desired) direction. The market must shake out the weak hands before moving in the desired direction.
  10. “Goes Bid”: Occurs when aggressive buyers successfully lift the offer by buying all the inventory at a price level, getting price to tick higher.
  11. “Goes Offered”: Occurs when aggressive sellers successfully hit the bid by selling through the demand at a price level, getting price to tick lower.
  12. Hit Bids: Aggressive sellers using market orders to sell on the best bid.
  13. Iceberg: Occurs when large players accumulate a position gradually using limit orders, so as to hide the overall position size.
  14. Imbalance (Trending): Imbalance occurs when excess supply or demand causes range expansion from balance. Imbalances suggests a price discovery phase in search of new value.
  15. Initiative Buyer: Buys above value, betting that price seeks higher value.
  16. Initiative Seller: Sells below value, betting that price seeks lower value.
  17. Lift Offers: Aggressive buyers using market orders to buy on the best offer.
  18. Long Liquidation: Occurs when buyers are forced to liquidate their positions, thus triggering a sell-off.
  19. Offers: Sell orders
  20. Passive Buyers: Buyers using limit orders to enter the market.
  21. Passive Sellers: Sellers using limit orders to enter the market.
  22. Pivot: A key level that buyers and sellers are attempting to control.
  23. Premium: When price is above value.
  24. Price Discovery: The process of determining the price of a good in the marketplace through the interactions between buyers and sellers.
  25. Range Contraction: Occurs when price transitions from imbalance to balance, creating a tighter range of trading. Can forecast significant opportunities for range expansion.
  26. Range Expansion: Occurs when price transitions from balance to imbalance during a price discovery phase seeking new value. After expansion comes contraction.
  27. Rejection: Occurs when price is perceived as unfair among buyers and sellers, which creates natural support and resistance levels.
  28. Responsive Buyer: Buys below value, betting that price will return to prior value.
  29. Responsive Seller: Sells above value, betting that price will return to prior value.
  30. Resting Bids: Placing an order to buy using a limit order
  31. Resting Offers: Placing an order to sell using a limit order.
  32. Short Squeeze: Occurs when sellers are forced to buy to cover their positions, thus triggering a rally.
  33. Supply: Sellers
  34. Trapped Buyers: Buyers who enter the market and immediately see price go against them, thus forcing them to liquidate their position. Can trigger sharp reversals.
  35. Trapped Sellers: Sellers who enter the market and immediately see price go against them, thus forcing them to buy to cover their position. Can trigger sharp reversals.
  36. Weak Hands: Positions held by short term speculators who do not intend on holding onto the position.