Trading Glossary

When aggressive orders hit a price level but fail to move price, indicating large passive orders are absorbing the aggression. A key reversal signal on footprint charts.

The price range formed during the Asian session (8:00 PM to 12:00 AM ET). Acts as the daily reference range — London and New York sessions target the Asian high and low for liquidity sweeps.

The first phase of the Power of 3 cycle. Price consolidates in a tight range while Smart Money quietly builds positions. Creates liquidity on both sides of the range.

The framework stating that markets alternate between balance (rotation around fair value) and imbalance (trending). Balanced markets are range-bound; imbalanced markets trend directionally.

The two columns in a footprint bar showing volume traded at the bid (aggressive sellers) on the left and volume traded at the ask (aggressive buyers) on the right.

Confirmation that a trend change has occurred. Happens when price breaks beyond the next swing point after an initial Change of Character, establishing a new directional bias.

A failed order block that flips from support to resistance (or vice versa) after being broken. Acts as a key level for entries on retests.

Stop losses from short sellers and buy stop orders sitting above price action, typically above equal highs or swing highs. When price sweeps these levels, it triggers a burst of buy orders that institutions sell into.

A profile shape that is fat at the bottom and thin at the top, indicating a sell-off or liquidation session. The POC sits in the lower portion. Check delta to confirm whether it was real selling or long liquidation.

A running total of delta across the session, tracking the cumulative difference between aggressive buying and selling. Used to identify divergences between price and order flow.

The first signal that a trend may be ending. Occurs when price breaks a key swing point in the opposite direction of the prevailing trend — the early warning before BOS confirms.

A pullback or retracement that follows an impulse leg. Moves against the trend, is typically slower and choppier, and provides the entry opportunity for the next impulse.

A profile that combines multiple sessions into one, revealing the bigger-picture value areas and POCs. Composite levels carry more weight than single-session levels because they represent sustained institutional consensus.

The difference between ask volume and bid volume at a specific price level or for an entire bar. Positive delta indicates more aggressive buying; negative delta indicates more aggressive selling.

A chart overlay showing the net delta (ask minus bid volume) for each bar as a colored bar. Blue indicates positive delta; magenta indicates negative delta.

A view inside each footprint bar showing the net delta at every price level, colored by direction. Reveals where buying or selling aggression was concentrated within the candle.

A price area where buying pressure previously overwhelmed selling, causing price to rally. When price returns to this zone, expect buyers to step in.

The third phase of the Power of 3 cycle. After manipulation sweeps liquidity, price reverses sharply in the true direction. Smart Money distributes their position into retail momentum.

A strong, impulsive price move characterized by large-bodied candles that shows clear institutional commitment. Displacement creates FVGs and confirms that Smart Money is active.

The lower half of a swing range (below the 50% equilibrium level). Price is cheap relative to fair value. Look for long entries in discount, not shorts.

A balanced, bell-curve-shaped profile — fat in the middle, thin at the extremes. Indicates a two-sided session where neither buyers nor sellers dominated. The POC is near the center of the range.

A profile with two separate clusters of activity connected by a thin zone of single prints. Indicates the market repriced from one value area to another during the session, often triggered by a news event or catalyst.

The 50% level of a swing range — the midpoint between the swing high and swing low. Represents fair value. Price above equilibrium is premium; price below is discount.

A single-print tail at the top or bottom of a Market Profile, showing strong rejection at the extreme. Excess confirms the auction at that price is complete — the market does not need to revisit.

A chart that displays the volume traded at each price level inside every candle, showing bid and ask activity separately. It reveals the order flow hidden inside standard candlesticks.

A three-candle pattern where the wick of Candle 1 does not overlap with the wick of Candle 3, leaving a gap where only Candle 2 traded. This gap is a price inefficiency — the market moved so fast that two-sided trading never happened at those prices. Price tends to return to fill FVGs.

The 61.8% Fibonacci retracement zone — the most watched retracement level among institutional traders. Corrections that hold at the golden pocket typically produce the strongest measured move continuations.

A swing high that is above the previous swing high. A series of higher highs indicates bullish momentum and an uptrend.

A swing low that is above the previous swing low. Combined with higher highs, it confirms bullish market structure.

A price level where one side overwhelms the other by a ratio of 3:1 or more. Buying imbalances show aggressive buyers dominating; selling imbalances show aggressive sellers dominating.

A sharp, directional price move that establishes or continues a trend. Characterized by large candles and strong momentum. Creates new swing points and breaks structure.

A smaller liquidity grab that lures retail traders into positions before the real sweep happens. Acts as bait — creates false confirmation that traps traders, building more liquidity for the actual move.

The price range established during the first hour of the regular trading session (A and B periods). The IB width helps predict day type — narrow IBs produce trend days, wide IBs produce range days.

The highest price reached during the Initial Balance (first hour). Acts as intraday resistance. A break above IB High signals potential bullish extension.

The lowest price reached during the Initial Balance (first hour). Acts as intraday support. A break below IB Low signals potential bearish extension.

A deceptive price move — typically during London Open — that sweeps liquidity in the wrong direction before the real daily move begins. Named after the biblical betrayal because it tricks traders into the wrong side.

Specific time windows during the trading day when institutional activity is highest. The main killzones are London Open (2-5am ET), NY Open (7-10am ET), and London Close (10am-12pm ET).

A swing high that is below the previous swing high. A series of lower highs indicates bearish momentum and a downtrend.

A swing low that is below the previous swing low. Combined with lower highs, it confirms bearish market structure.

Resting orders in the market — stop losses and limit orders sitting at known price levels. Institutional traders need liquidity to fill large positions. Buy-side liquidity sits above price, sell-side below.

When price briefly pushes beyond a key level to trigger stop losses, then reverses. The signature of institutional activity — stops are triggered to create the liquidity institutions need to fill their orders.

The killzone from 2:00 AM to 5:00 AM ET when European banks begin trading. Often creates the Judas Swing by sweeping the Asian session range before the real daily move begins.

A price projection where the distance of Leg A (impulse) is added to the correction low to project Leg B's target. Halsey's primary target is the -23.6% extension beyond the 100% level.

The second phase of the Power of 3 cycle. Price breaks out of the accumulation range in the wrong direction to sweep liquidity. This is the Judas Swing — the trap that provides institutional order fill.

The Power of 3 applied to daily and weekly cycles. Identifies the accumulation range, waits for the manipulation sweep, then enters during the distribution phase targeting opposite-side liquidity.

A price projection where Leg A's distance is added to the correction low to project Leg B's target. The -23.6% extension beyond 100% is Halsey's primary target in strong trends.

A charting method created by J. Peter Steidlmayer that organizes price data by time using TPO letters. The resulting profile shape reveals where the market accepted value and where it moved through quickly.

The killzone from 7:00 AM to 10:00 AM ET — the highest volume session with the most reliable setups. Often defines the day's range and creates the real expansion move.

The last opposing candle before an impulse leg. Marks the zone where the institutional order that initiated the move originated. A common entry point on retests.

The ideal entry point during a retracement, typically at the 62-79% Fibonacci retracement level of the impulse move. Aligns with order blocks and FVGs for precision entries.

The price level with the highest total volume in a given period. Represents fair value — where the market attracted the most trading interest from both sides.

The ICT framework describing how every significant move is structured in three phases: Accumulation (range), Manipulation (fake breakout / stop hunt), and Distribution (real directional move).

The upper half of a swing range (above the 50% equilibrium level). Price is expensive relative to fair value. Look for short entries in premium, not longs.

A profile high that lacks a single-print tail — multiple TPO letters at the extreme instead of a clean rejection. The auction is incomplete and price tends to revisit the level.

A profile low that lacks a single-print tail — multiple TPO letters at the extreme instead of a clean rejection. The auction is incomplete and price tends to revisit the level.

The overall shape of a completed session profile. Common shapes include D-shape (balanced), P-shape (rally), b-shape (sell-off), double distribution (repricing), and elongated (trend day).

A profile shape that is fat at the top and thin at the bottom, indicating a rally or short-covering session. The POC sits in the upper portion. Check delta to confirm whether it was real buying or short covering.

Price movement beyond the Initial Balance High or Low. A range extension signals that one side is taking control of the session. The 1x IB rule projects the first target by adding the IB width to the breakout side.

Three or more consecutive price levels with imbalances in the same direction. Marks zones where institutional traders committed significant size, creating reliable support or resistance.

A local peak on a chart where price reversed lower. The highest point between two lower candles on either side. Marks a level where sellers previously overpowered buyers.

A local trough on a chart where price reversed higher. The lowest point between two higher candles on either side. Marks a level where buyers previously overpowered sellers.

A price area where selling pressure previously overwhelmed buying, causing price to drop. When price returns to this zone, expect sellers to defend it.

A period of low volatility compression, typically identified by contracting Bollinger Bands or Keltner Channels. When the squeeze releases, it often produces an explosive directional move.

A trend-following indicator that combines moving averages to create a colored cloud on the chart. Green indicates bullish trend; red indicates bearish trend.

Stop losses from long buyers and sell stop orders sitting below price action, typically below equal lows or swing lows. When price sweeps these levels, it triggers a burst of sell orders that institutions buy into.

Institutional traders — banks, hedge funds, and market makers — who have the capital and information to move markets. ICT methodology focuses on identifying and trading with Smart Money activity.

A single directional price movement from one swing point to the next. Can be an impulse leg (with trend, fast) or a correction leg (against trend, slow). Legs are measured in points to project future targets.

A price level on the Market Profile where only one TPO letter appears — the market visited that price during only one 30-minute period. Single prints represent initiative activity and act as support or resistance when revisited.

Time Price Opportunity — a single letter on a Market Profile chart representing one 30-minute period at a specific price level. Letters stack horizontally to show how much time the market spent at each price.

An incomplete auction where the high or low of a footprint bar shows zero volume on one side. Price tends to revisit these levels to complete the two-sided trading process.

The range of prices where approximately 70% of total volume traded during a session. Defined by the Value Area High (VAH) and Value Area Low (VAL) around the POC.

The top of the Value Area — the highest price within the zone where 70% of volume traded. Acts as resistance. When price breaks above the VAH, the market is repricing higher.

The bottom of the Value Area — the lowest price within the zone where 70% of volume traded. Acts as support. When price breaks below the VAL, the market is repricing lower.

A histogram showing the total volume traded at each price level over a defined period. Reveals where the heaviest trading occurred and where price is likely to find support or resistance.

Volume Weighted Average Price — the session's average price weighted by volume. The institutional benchmark for fair value. Price above VWAP = buyers in control. Price below = sellers in control.