8/21/50. The 8 period exponential moving average is above the 21 period exponential moving average which in turn is above the 50 period simple moving average.
8 crossing over 21.
These are our two most important moving averages. When they cross, a potential trade opportunity exists or it can be confirmation of a previous entry.
Breaking out to new rally highs.
Price of the stock or index is at its highest since the March 6, 2009 rally began.
Enter light and tight.
Enter the trade with a very small position with a stop loss exit set to minimize losses. Be prepared to add to the position as the trade moves in your favor.
Front Month.
Trading the options of the month next in line for expiration.
Inside Day.
The low of the body of the previous day’s candle is lower than today’s low and the high of the body of the previous day’s candle is higher than today’s high.
Meredith.
Meredith Whitney; a former analyst of financial stocks and now a hedge fund manager. The financial stocks typically move in line with her views of financial stock valuations.
Moving Average Pinch.
A moving average pinch or squeeze exists when the 8, 21, 50. and 200 period moving averages compress on each other. This will often lead to a big move. This is valid for all time frames on your charts.
Moving average rolling under another.
If a faster moving average rolls above a ascending moving average, it is bullish. If a faster moving average rolls below a descending moving average, it is bearish.
Moving Average Squeeze.
Same as moving average pinch.
On Balance Volume.
OBV provides a running total of volume and shows whether this volume is flowing in or out of a given security. OBV attempst to detect when a stock is being accumulated by a large number of buyers or sold by many sellers. Traders will use an upward sloping OBV to confirm an uptrend, while a downward sloping OBV is used to confirm a downtrend. Finding a downward sloping OBV while the price of an asset is trending upward can be used to suggest that the "smart" traders are starting to exit their positions and that a shift in trend may be coming.
Outside Day.
The low of the previous day’s candle is higher than today’s candle body low and the high of the previous day’s candle is lower than today’s candle body high.
Positive Tape.
The market (S&P 500) is moving up.
Negative Tape.
The market (S&P 500) is moving down.
SOH.
Sitting on Hands, doing nothing but waiting
Stochastic Cross.
When the fast stochastic (%K) line crosses the slow stochastic (%D) line. This can trigger entries and exits regardless of time frame.
Trade with the tape.
If the market is moving up, try to trade stocks that are trending up. If the market is moving down, try to trade stocks that are trending down.
Undercut the 50.
Failure to get support from the 50 period moving average. This is significant on daily charts as big money typically will come in to buy at the 50 day simple moving average.
Volume Bad.
Stock or market is moving up or down on less than average volume.
Volume Good.
Stock or market is moving up or down on greater than average volume.