ATR (Average True Range)
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A volatility indicator that measures the average price range over a specified period, used for assessing risk and setting stop losses, and for determining position sizes.
Bollinger Bands
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A volatility indicator based on the standard deviation of closing prices over a lookback period. Used to determine when prices are outside one standard deviation or stretched at three standard deviations or higher.
Collapsing Dragon
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A core pattern. Bearish signal indicating the reversal attempt to the upside is failing and price is likely to fall back and continue the primary downtrend.
Craft Knowledge
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Practical skills and experience gained from doing something over and over, combining the 'art' and 'science' of trading into actionable techniques.
Doji
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A candlestick pattern with a small body and roughly equal upper and lower wicks, indicating market indecision. On a daily time frame, a Doji suggests potentially large moves the next day when price breaks outside the zone. Dr. Long's command: 'Green Doji Go.'
FQN (Frog Quality Number)
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A statistical indicator measuring the desirability of stocks for intraday trading. Higher FQN = directional price movements; low FQN = choppy action. Symbols with FQN 3.0+ are highlighted in Dr. Long's nightly analysis.
Owl
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A core pattern. Bullish signal indicating the breakout of price to the upside.
R (Risk/Reward)
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A measure of risk — the maximum amount that can be lost if the trade fails. Also used as a unit of reward multiples. Risking $200 = 1R. A $300 gain = 1.5R.
Supported Fall Crossing (SFC)
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A core pattern. Bearish signal expecting a reversal of the most recent uptrend.
Supported Spring Crossing (SSC)
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A core pattern. Bullish signal indicating the reversal of the most recent downtrend.
TC2000
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A trading analysis, charting, scanning, and trade execution platform used by the Fractal Edge Framework team.