The Art & Science of Technical Analysis: Market Structure, Price Action & Trading Strategies

Glossary

acceleration factor In the Parabolic SAR, an input that controls how quickly the stop and reverse level is moved toward price. Normally, this factor increases with each bar, moving the stop closer at an ever-accelerating rate.

accumulation One of the classic market phases in which large buyers establish positions without moving the market, but also can refer to the presence of underlying buying in other contexts. Accumulation is usually seen as constructive and supportive of prices.

adaptive markets hypothesis (AMH) A theory of market behavior pioneered by Andrew Lo that proposes that markets can be described by a process of evolving efficiency.

always-in A colloquialism for styles of trading that seek to always have a position in the market, reversing from long to short based on technical signals. Perhaps more useful as a research/backtesting methodology than an actual trading style.

Anti A trade setup that attempts to enter the first pullback following a potential change of trend.

ask Also called the offer. The price, almost always above the bid and often above the last print, in an order book at which people are willing to sell the market.

asynchronous trading A problem in evaluating indexes, pairs trades, or some systems in which prices that occur together in the data series may not have actually occurred at the same time.

ATR% Average True Range (ATR) as a percentage of the last price, or ATR standardized for price. This is a volatility measure that can be compared ...