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).
Acceptance: Occurs when price is perceived as fair among buyers and sellers within a balanced range.
Aggressive Buyer: A market participant who buys using a market order (see also Lifting the Offer)
Aggressive Seller: A market participant who sells using a market order (see also Hitting the Bid)
Balance (Bracketed): Balanced ranges develop when the market establishes value, thereby offering fair facilitation of trade between buyers and sellers.
Bids: Buy orders
Discount: When price is below value.
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.
“Goes Bid”: Occurs when aggressive buyers successfully lift the offer by buying all the inventory at a price level, getting price to tick higher.
“Goes Offered”: Occurs when aggressive sellers successfully hit the bid by selling through the demand at a price level, getting price to tick lower.
Hit Bids: Aggressive sellers using market orders to sell on the best bid.
Iceberg: Occurs when large players accumulate a position gradually using limit orders, so as to hide the overall position size.
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.