These terms are defined in relationship to the manner in which they are used in the text and at Wyckoff SMI.
Absorption: The reduction of the floating supply caused by persistent longer term buying within a trading range.
Accumulation: The establishment of an investment or speculative position by professional interests in anticipation of an advance in price.
Advance: A rise in price or an upward movement in a coin or index.
Angle of Advance: The inclination of a rising price trend.
Angle of Decline: The inclination of a lowering price trend.
Apex: The focal point of converging support and supply lines. (See dead center, hinge, pivot, wedge).
AR – Automatic Rally, or Automatic Reaction
Average: A numerical representation which purports to reflect the mean (average) price of a particular class of coins.
Averaging:
(1) Dollar Averaging: a periodic investing of a definite number of dollars irrespective of the number of coins involved;
(2) Share Averaging: periodic purchases of the same number of coins irrespective of the number of dollars required.
(3) Averaging Up: periodic purchases on a rising scale whose purpose generally is to pyramid profits; and
(4) Averaging Down: periodic purchases as a price declines, which has the general purpose of lowering the mean cost of the coin.
BC – Buying Climax
Bear: A speculator who concludes that the probable future trend will be one of declining prices.
Bear Market: A market condition characterized by declining prices.
Breakthrough: A price movement above/below a previous supply/support area.
Bulge: A sudden expansion of price or volume. (However, bulge generally is used in reference to volume.
volume.)
Bull: A speculator who concludes that the probable future trend will be one of advancing prices.
Bull Market: A market condition characterized by advancing prices.
Buying Climax: A situation characterized by the highest intensity of speculative demand occurring within an uptrend. This situation occurs only after a move has been in effect for some time. This condition marks the end or the approaching end of the particular uptrend.
Campaign: An organized market operation for the purpose of moving the price of a coin.
Commitment: A market position in a coin or other trading medium.
Composite Average: An index composed of a number of coins which is used to represent the general market. Normally constructed by adding the prices of a limited but fixed number of coins, then dividing by the number of coins making up the average.
Composite Man: The term used to refer to the sponsors or large professional interests in the market, also called composite operator.
Cover: The act of buying a coin previously sold short. (See short sale, short covering).
Culminating: The ending of a move.
Day Order: An order to buy or sell which is good only on the particular day on which it is made.
Dead Center: The focal point of converging support and supply lines. (Also, apex, hinge, pivot wedge).
Deduction: The form of logic or reasoning which proceeds from the general statement to the specific case.
Distribution: The elimination of a long investment or speculative position.
Figure Charts: A chart of a coin, stock, commodity or index, which takes into consideration price movements and fluctuations. Volume and regular time intervals are not generally used in the construction of figure charts.
Floating Supply: The supply of coin that is normally available for purchase during a given period of time.
Force Index: An index developed by the Stock Market Institute to portray the investment factors during continuous periods of market history.
G.T.C. (Good ’til Cancelled) A customer’s order to buy or sell coins at a specified price. The order remains in effect until it is either executed or cancelled.
Hedge: A condition in which both long and short positions are maintained by the same interests.
High: The highest price of a coin, security, issue, index, etc., for a specific time period. Generally , the highest price of the day.
Hinge: The focal point of converging support and supply lines. (See apex, dead center, pivot, wedge).
Hypodermics: A deliberately forced, fast mark-up in the price of a coin. The purpose of hypodermics is the stimulation of uninformed buying in order to facilitate distribution.
Index (Price): A statistical instrument which is used to determine the trend of a particular class of security. This is not an average.
Induction: The reasoning process or logic which begins with specific cases and proceeds to a broad generalization.
Inside Day: A day for which the high and low prices are, respectively,lower and higher than those of the preceding day.
Institutional Investors: Generally, large corporate investors such as banks, insurance companies, investment trusts, mutual funds, pension funds, colleges and universities, and charitable foundations.
Intermediate Trend: A price movement which has two basic characteristics. These are (a) a move of approximately 15% of its value and (b) a duration of two weeks to two months.
Intra-Day Wave Chart: A continuous line chart reflecting the price swings occurring entirely within a single day’s trading (IDWC).
Investment Position: Coin holdings established for investment purpose only.
Law of Supply and Demand: The basic economic law used to explain the cause of all price changes.
Limit Order: An order to buy or sell only at a specified price or at one more favorable than the specified price.
Line of Least Resistance: The trend of coin prices, whether it be advancing or declining.
Locked-In: A psychological state of mind which exists when an individual believes that he cannot afford to liquidate a security position.
Long: The ownership of coins.
Long-Sale: The sale of a long coin position.
Long Terms: Financially , it is considered to be a five year investment; the tax definition can be different.
Low: The lowest price of a coin, security, issue, index, etc., for a specific time period. Generally, the lowest price of the day.
LPS – Last Point of Support, or Last Point of Supply
Margin: The amount of money deposited by a customer when he uses credit to buy coins, the balance being financed or advanced by the broker/exchange.
Mark-Down: A sustained downward price movement.
Market Order: An order to buy or sell at the best price available at the time the order is received.
Mark-up: A sustained upward price movement.
Option: A contractual right to buy or sell a security at a specified price within a specified period of time.
Optimism-Pessimism Index: An index developed by Wyckoff SMI which reflects the optimism due to buying and pessimism due to selling during any specific period of market history.
Overbought: A condition in which the supply – demand relationship for a particular class of coins is such that normal equilibrium between economic forces exists only at a price below that at which the current trades are being made.
Preparation: Transactions designed to affect the supply – demand relationship for a security order to facilitate its future price move.
Pressure: Sustained selling of a coin.
Primary Distribution: The initial liquidation of a long position.
Process of Rotation: The principle that all coins of a class do not prepare, advance, or decline at the same time. Some coins lead the various stages while others lag.
PS – Preliminary Support, or Preliminary Supply
Pyramid: The use of accrued profits to enlarge a speculative position.
Rally: A short term advance in the price of any coins, securities or class of securities.
Reaction: A short term decline in the price of any coins, securities or class of securities.
Resistance: Opposition to advancing prices caused by an increase in the available supply.
SC – Selling Climax
Secondary Distribution: The liquidation of a long coin position occurring after primary distribution but prior to the next mark-down phase. A plateau in a big down move.
Selling Climax: A situation characterized by the highest intensity of speculative supply occurring within a downtrend. This situation occurs only after a move has been in effect for some time. This condition marks the end or the approaching end of the particular downtrend.
Shakeout: A deliberately forced price reaction, whose purpose is that of stimulating public selling in order to facilitate the accumulation of speculative positions.
Short Covering: Buying a coin to eliminate or close out a short position.
Short Position: Coins, securities and/or commodity future contracts sold short.
Short Sale: Sale of a borrowed coin by a person who believes the price will decline. i.e. You place an order to sell short 200 coins.
SOS – Sign of Strength
SOW – Sign of Weakness
Speculation: To assume a market risk in expectation of gain; especially, to buy or sell in expectation of profiting from market fluctuations.
Spring – is a penetration below a previous support area which enables one to judge the quality and quantity of that supply on the penetration.
Springboard: A condition in the price movement of a coin that has completed preparation and has been brought to a point where the coin may move into a mark-up or a mark-down period.
ST – Secondary Test
Stop Limit Order: An order to buy or sell which becomes a limit order as soon as the coin’s price reaches or sells through a specified stop price.
Stop Order: An order to buy or sell which becomes a market order as soon as the price of the coin reaches or sells through the specified price.
Straddle: Going long in one coin and short in another.
Strength: A coin reflects strength when its price shows the ability to advance.
Strong Technical Position: Condition in which normal available demand exceeds floating supply.
Supply Line: In a downtrend a line connecting at least two important points of supply.
Support: Opposition to declining prices caused by the increase in available demand.
Tape Reader: A person trained to determine the characteristics of market fluctuations, using data which he derives from the order book.
Technical Rally: A technical rebound. A part of a typical selling climax. (Automatic rally)
Technical Reaction: Opposite of technical rally-part of a typical buying climax.(Automatic reaction)
Technometer: An index developed by the WyckoffSMI for the purpose of indicating normal extremes in the supply – demand conditions.
Terminal Shakeout: A sharp downward thrust through a previous support area. Executed for the purpose of buying all the coin possible from weak or vulnerable holders.
Terminal Thrust: A temporary bulge through the top of a trading range which fails to hold.
Thrust: The price difference between consecutive tops in uptrends or between consecutive bottoms in downtrends.
Thrust Movement: A sharp run-up out of an area of distribution; or a temporary bulge through the top of a trading range which fails to hold (Synonym: upthrust).
Trade: To buy or sell coins, stocks, securities, options, etc.
Trading Range: A condition characterized by temporary price trends, which are offset by ensueing moves in the opposite direction, and by a persisting equilibrium in the supply – demand relationship.
Trend: The line of least resistance. It is the direction in which a price is moving.
Trend Charts: These are charts which graphically depict the trend of a coin, the general cryptocurrency market, or index.
Turning Point: The place at which a coin price trend reverses its direction.
Upthrust: A sharp price movement above a prior supply level, which does not hold, but immediately reacts below that previous level.
UT – Upthrust
Vertical Line Charts: Charts which graph the volume, high, low, and closing prices for the day, week, month, or year of any coin or index.
Weakness: The ability of price to decline.
Weak Technical Position: A condition in which normal available demand is exceeded by the floating supply.
Wedge: The focal point of converging support and supply lines. (See apex, dead center, hinge, pivot.)
Whipsawed: A situation in which a speculator is repeatedly wrong no matter what he does. It usually results from buying at the tops and selling at the bottoms.