Day Trading Encyclopedia

Trading Terminology and Acronyms

Stock Market Terms

Day traders tend to use a lot of acronyms to make communication more efficient. Making sense of trading terminology should be one of the easier parts of day trading, so make sure you are familiar with the terms below.

HOD - High of Day (nHOD = new high of day) LOD - Low of Day (nLOD = new low of day)

Typically NOT used near market open. Proper usage is when a stock has retreated from a high or low, then later makes a new high or new low.

EOD – End of Day

O/N – Over Night

52s – new 52 week high

B/O = breakout

SS or S/S – short sell

Green – Price is above previous day’s close

Red – Price is below previous day’s close

Green to Red (G/R) – Stock was above prior day’s close, but now has dropped below it

Red to Green (R/G) – Stock was below prior day’s close, but now has rose above it

L/F - low float

ADR – average day range over a certain period number of days, example: ADR(30) – the higher the number the more volatile

D/R – DayRanger

SSR - Short sell restriction/downtick rule

UBB - Upper Bollinger Band

LBB -Lower Bollinger Band

DD - Due diligence, do your homework on the stock, news, earnings, fundamentals etc.

E/R – Earnings Report

Pre – Pre-market trades

AH – After Hours trades

Shoooooop – often referred to when a stock starts to tank hard

Low float -usually small cap companies with fewer shares issued and a lot of those shares owned by insiders or institutions. Hence lower number of shares actively traded. That increases volatility and potential for short squeeze or drop/rise on E/R or news.

R/R- Risk/Reward

10/60 cross – See post on sidebar under important posts.

MuddyZone – Search blog for that phrase, on daily chart is area between the EMA 10/SMA 30 (or 20)

Jiggy – Phrase coined by Muddy. Refers to watching the Scottrade quote box when a stock is gearing up for a possible big move the bid/ask size, bid/ask exchanges, and the prices all start to change very rapidly as orders are increasing tremendously.

S/R - support/resistance

DayRanger refers to the stocks from our scan with the highest average day range (a measure of volatility). More volatility can equal greater than average returns. The day range returns the difference between the high and low prices of the day, represented as a percent of the closing value. For example, suppose a stock closed at 10, the high was 11 and the low was 9. The difference between the high and low is 2. Represented as a percent, the day range is: 20%. So ADR(10) of 20% means the average day range over a 10 day period.

PPT Plunge protection team – meaning the prop job that comes in towards the end of the day to give the market a boost into the next trading session