The Forexia Glossary

The words Forexia uses to read a forex chart, each defined in a line: liquidity mapping, the stop hunt, the close back, the chaos pattern and the rest.

Perceptual Positioning

Dumb Money: What It Means, and Where Dumb Money vs Smart Money Goes Wrong: Dumb Money is Forexia's name for the predictable retail herd the chart is built to trap.
Fade the Crowd: What the COT Report for Forex Rules Out, and What It Cannot Tell You: Fade the Crowd is the COT read that when the large speculators are crowded, you never trade with them.
Perceptual Positioning: The Trading Psychology of Reading One Chart From Three Seats: Perceptual Positioning is seeing the same chart from three seats: the retail trader, the market maker, and the observer who sees the whole trap.
The 90-90-90 Rule: The Saying About Why Most Traders Lose Money, and What Is Actually Known: The 90-90-90 Rule is the saying that ninety percent of traders lose ninety percent of their money within ninety days.
The NPC: What Trading Education Turns You Into, and One Reason Most Traders Lose: The NPC is what trading education turns you into: a predictable bot who follows the trend and asks no questions.
The Three Seats: Retail Trader vs Market Maker, and the Observer Who Reads Both: The Three Seats are the retail trader, the market maker and the observer.

Liquidity Mapping

Liquidity Mapping: How to Mark the Pools of Stops Before the Session: Liquidity Mapping is marking the pools of stops on the chart before the session: where the textbook trader enters, and where their stop sits. The chart becomes a map of orders.
Liquidity Visualization: Seeing Where the Crowd's Orders Rest Before a Sweep: Liquidity Visualization is using market structure to reverse engineer the retail trader's mindset and see on the chart where their orders rest. It is the habit behind Liquidity Mapping.
The High and Low of the Day: the First Pool the Second Leg Hunts: The High and Low of the Day are the first pool the second leg hunts: the furthest points price has reached so far that day, with the crowd's stops resting just past them.
The Previous Day's High and Low: What Rests There, and How Often Price Closes Back: The previous day's high and low are the highest and lowest prices of the last completed trading day, and stops and breakout orders rest just beyond them.
The Week's High and Low: the Biggest Pool of Stops, and Why It Moves: The Week's High and Low are the biggest pool of stops on the chart, and the pool the WTF Reversal runs for.

Reverse Price Action

M & W Reversals: the M and W Pattern in Forex, Read Leg by Leg: M & W Reversals are an M off the highs or a W off the lows, from a clear Asian range, in London or New York.
Reverse Price Action: Reading a Pattern Backwards, and What a Fake Breakout Really Is: Reverse Price Action is reading a pattern backwards: why it was built here and now, how textbook traders will react, where their stops sit, and how the bigger players use that pool. Then trading the opposite of the textbook read.
Second Leg Climax: the Second Leg Reversal Pattern Behind the M and W: Second Leg Climax is the volatile second leg that hunts the high or low of the day and confirms the M or W.
The Close Back: How a Liquidity Sweep Is Confirmed, Candle by Candle: The Close Back is the spike that closes back inside the level it pushed through. It is the proof a liquidity sweep has happened rather than a real break.
The Reversal Candle: One Huge Candle Through the Stops, Not a Signal: The Reversal Candle is one huge candle through the stops, straight after the crowd gets in.
The Stop Hunt: What It Means, and How It Relates to a Liquidity Sweep: The Stop Hunt is price driven into clustered stops to fill the other side of an order. It is commonly called a liquidity sweep.
The Third Tap: Why a Double Top's Third Touch Is Where the Trap Is Set: The Third Tap is the perfect third touch of a level, where the trap is set. Why would the market give you such a perfect entry?
The Trap: Why the Crowd's Averages Cross Late, and the Best Indicator for Scalping: The Trap is the indicator trap: the averages cross late, pull the crowd in, then cross back onto their stops.

News-Induced Liquidity

News-Induced Liquidity: Why Price Spikes Both Ways on a Release: News-Induced Liquidity is the extra orders that a scheduled release brings in at one known minute. Because the minute is known, we read the morning around it as consolidation, an induction against the intended move, then a reversal.
On CPI: Reading the Inflation Release Minute by Minute on EUR/USD: On CPI is the News-Induced Liquidity read applied to the inflation number, on a real release day from our chart markups.
On FOMC: What Price Does Around the Fed's Decision and Press Conference: On FOMC is the News-Induced Liquidity read applied to the Federal Reserve's decision, on a real day from our chart markups.
On NFP: Reading the Jobs Report Candle, Not the Number: On NFP is the News-Induced Liquidity read applied to the jobs report, on a real release day from our chart markups.

The Chaos Pattern

The Asian Box: How to Draw the Asian Range, and What Its Breakout Really Is: The Asian Box is the Asian range drawn on the chart: the high and low from the session break to the London open.
The Chaos Pattern: The Daily Cycle Behind Every Asian Session Strategy: The Chaos Pattern is the daily cycle: Asia sets the scene, London breaks it and New York reverses it. Consolidation, then breakout, then reversal.
The London Breakout: What the Strategy Says, and Why the Crowd Buys the Top: The London Breakout is the move out of the Asian range at the London open, where retail enters for the continuation. The turn can come in London too.
The New York Reversal: Why New York Undoes London, and How Often It Does: The New York Reversal is the dealer moving in the opposite direction of the London breakout during the New York session.
The Window of Tolerance: What the Quiet Asian Range in Forex Is For: The Window of Tolerance is the calm Asian range in which most traders place their orders. The quiet is where the orders for the next session sit.

The WTF Reversal

ADR Met Tuesday: When the Average Daily Range Is Used Up, and How Often It Is: ADR Met Tuesday is the average daily range used up by Tuesday: one of the confirmations.
Mid-Week Reversal: How to Spot the Turn on the Hourly Chart: The Mid-Week Reversal is the turn itself, after the trap. It happens on almost every forex pair, though not always on Wednesday.
The Induction Trend: Why I Lose Money Trading the Trend the Week Starts With: The Induction Trend is the trend of Sunday, Monday and Tuesday that dumb money follows. It exists to bring the crowd in before the week turns.
The Midweek Trap: A Multi-Day M on One Real Week, Read Candle by Candle: The Midweek Trap is Wednesday's trap: a multi-day, multi-session M.
The Weekly Script: Forex Weekly Analysis as a Plan in Three Parts: The Weekly Script is reading the week as a plan the market makers wrote in advance: the induction, the trap, the reversal, always in that order.
The WTF Reversal: the Midweek Reversal in Forex, Through Wednesday, Thursday and Friday: The WTF Reversal is the reversal through the herd's stops on Wednesday, Thursday and Friday, after the induction trend from Sunday to Tuesday and the trap on Wednesday.