Terms

Trigger

Condition intended to activate a setup.

Invalidation

Condition that breaks the setup thesis.

Target

Planned objective when supplied.

R

P&L divided by modeled risk from trigger to invalidation.

Reclaim

Price moves back above a referenced level after trading below it.

Acceptance

Price holds above or below a level rather than briefly crossing it.

Defended pullback

A pullback where buyers hold a referenced support area.

Reaction low

Low established during the market reaction to a catalyst.

Post-earnings range

Trading range established after an earnings release.

Intraday

Setup intended for the trading day.

Swing

Setup intended to persist beyond one session.

Breakout failure

Price moves through a breakout level but fails to hold it.

Correlated exposure

Multiple positions driven by the same theme or risk factor.

Slippage

Difference between modeled and actual execution price.

Notional

Market value represented by a position.