Glossary
Terms, defined plainly
- Break of structure (BOS)SMC
- A close beyond the latest swing in the direction of the existing trend — a continuation label.
- Lesson: Break of structure vs change of character
- CandlestickTechnicals
- A bar showing open, high, low and close for one period; the body and wicks reveal who won the session.
- Lesson: Reading candlesticks
- Change of character (CHoCH)SMC
- The first close beyond a swing against the prevailing structure; a warning, not a confirmed reversal.
- Lesson: Break of structure vs change of character
- DojiTechnicals
- A candle whose open and close are nearly equal, indicating balance between buyers and sellers.
- Lesson: Reading candlesticks
- Liquidity sweepSMC
- Price trades through a pool but closes back inside within 1-2 candles. A sweep alone is not a signal.
- Lesson: Liquidity pools, equal highs/lows and sweeps
- Open interestOptions
- Number of option contracts outstanding that have not been closed or exercised.
- Lesson: Option liquidity and bid-ask spreads