• Bears: Traders who believe the price of an asset will decrease.

• Bulls: Traders who believe the price of an asset will increase.

• CFD: A Contract for Difference, which allows traders to speculate on the price movement of an asset without owning it.

• Double Bottom: A chart pattern where an asset price makes two distinct lows, and can signal a reversal to the upside.

• Double Top: A chart pattern where an asset price makes two distinct highs, and can signal a reversal to the downside.

• EMA (Exponential Moving Average): A moving average that places a greater weight and significance on the most recent data points.

• Follow-Through Bar: The bar immediately following a signal bar, used to confirm the strength or weakness of the signal.

• Gap (Price Gap): A space on a price chart where there is no trading activity; can be bullish or bearish,

• Globex High/Low: The highest and lowest prices of an asset in the Globex session which occurs outside the European Session.

• High1: A first attempt to move higher by buyers in the session, often after a period of falling price.

• High2: A signal bar suggesting a potential long entry point, after two attempts to move higher, or after the failure of High1 attempt to gain momentum.

• Low1: A first attempt to move lower by sellers in the session, often after a period of rising price.

• Low2: A signal bar suggesting a potential short entry point, after two attempts to move lower, or after the failure of Low1 attempt to gain momentum.

• Measured Move: A price projection after a gap, calculated by projecting the distance from the beginning of the gap to a retracement point.

• Price Action: The movement of an asset's price over time, usually examined using charts.

• Resistance: A price level at which an asset's price is expected to find it difficult to rise above.

• Session Open Price: The price at which trading began in the current session.

• Signal Bar: A bar that suggests a potential entry point for a trade (e.g., High2 or Low2)

• Support: A price level at which an asset's price is expected to find it difficult to fall below.

• Trading Range: A period where the market moves sideways within well-defined high and low price points.

• Upper/Lower Tail: Part of a candlestick bar that shows the high or low price for the period. A prominent upper tail indicates selling pressure, and a prominent lower tail indicates buying pressure.

• Wedge Bottom: A chart pattern where the price of an asset makes three distinct lows, and can signal a reversal to the upside.

• Wedge Top: A chart pattern where the price of an asset makes three distinct highs, and can signal a reversal to the downside.

• What are "Globex High" and "Globex Low", and why are they important at the start of the European session?

• The "Globex High" and "Globex Low" refer to the highest and lowest prices achieved during the overnight trading session. These levels are significant because a large percentage (90% according to this analysis) of European trading sessions break either the Globex High or Globex Low. This means they act as key reference points for potential breakouts and price movement direction at the start of the session.

High2" refers to a setup where the market attempts to move higher for the second time within a specific timeframe, often after a previous attempt has failed or stalled. This can be a potential buy signal if confirmed by a strong bull bar. Conversely, "Low2" refers to a second attempt to move lower and can be a potential sell signal. These signals are used to anticipate potential market direction changes and are often assessed based on the strength and follow through of the subsequent bars. A failed High2 or Low2 signal can indicate weakness in the current trend, and the potential for the opposite direction.

• A "weak" signal bar typically has a small body and/or a prominent tail (wick), suggesting a lack of conviction in the direction of the price movement and a possibility of reversal. A "strong" signal bar, conversely, has a significant body, closing near its high (for a bull bar) or low (for a bear bar), demonstrating momentum and a higher probability of follow-through in that direction. The strength of a signal bar is crucial in determining the likelihood of a trade being successful. A weak signal bar typically needs a very strong follow through to become a profitable trade.

IPrice gaps occur when there is a sudden jump in price, leaving a "gap" on the chart. Bullish price gaps (where the price jumps higher) and bearish price gaps (where price jumps lower) show strength in the direction of the move. Consecutive gapping bars are a strong signal. The analysis notes that the presence of open bear gaps, with all bull gaps closed, is a sign of strong bears and increases the likelihood of lower prices. Price gaps also often lead to a sideways trading range, and eventually, the gaps tend to be "filled" or closed in the future.

• The analysis frequently mentions the concept of "first" and "second" attempts, both for buyers and sellers. This is based on the idea that the first attempt to break out of a range or start a new trend is often a "fake out". Waiting for the second attempt, and assessing its success or failure, gives a higher probability of a successful trade. The first attempt often fails as there is a tendency for traders to take profits from the previous move at key resistance or support levels.

Selling at the session lows" refers to opening a short position when the price has already reached a low point in the current trading session. This is often a low probability event because the market is more likely to reverse after a move like that. The analysis points out that there are likely more buyers at a low point than sellers and initiating short positions at the session lows is a lower probability trading event. This type of trading is typically where many traders lose money.

Wedge Bottoms" and "Double Bottoms" are chart patterns that signal potential bullish reversals. A wedge bottom shows that buyers are gradually gaining control, with prices making multiple attempts to go higher. A double bottom also suggests potential bullish reversal as the market tries to move lower but is rejected by the previous lows on at least two occasions. These patterns are used to identify likely buying opportunities, but the analysis stresses that context is crucial. For example, in a bearish market, these patterns are more likely to trap buyers.

• A trading range or sideways market is characterised by price action that moves within a limited band, with buyers at the low end and sellers at the high end. This usually happens when there is a lack of a strong trend and indecision in the market, with neither bulls or bears in firm control. When a market enters a trading range, the analysis advises to reduce position size, wait for a strong breakout in either direction or look for short term scalps trading the top and bottom of the range. Aggressive traders will also try to anticipate the range highs and lows and look to initiate short trades at resistance and long trades at support within the range.