Trading glossary
Plain-English definitions of the concepts behind our indicators — structure, context and the language of the chart.
Absorption
When large passive orders soak up buying or selling pressure without letting price move — often an early sign of a reversal.
On the chart: Edo A/D Flow Core →Accumulation / Distribution
Phases where positions are quietly built (accumulation) or unloaded (distribution) before a larger move shows on the chart.
On the chart: Edo A/D Flow Core →Alert
A notification fired when a predefined condition is met (a cross, a state change, a level). Most Edolab indicators ship with ready-made alerts.
Anchored VWAP
A VWAP whose calculation restarts from a chosen anchor point — such as the start of the week or month — instead of resetting every session.
On the chart: Edo VWAP Core →Average True Range (ATR)
A measure of how much an asset typically moves in a period. Used to size stops and to compare distances across very different assets.
On the chart: Edo Bands Fusion →Band width
The distance between the upper and lower volatility bands. Narrow width signals compression; widening signals expansion.
On the chart: Edo Bands Fusion →Bearish breaker
A former demand order block — a support — that price has closed below. Once lost, the zone inverts its role and acts as resistance: the buyers trapped inside it sell into every return. Drawn in red above price by Edo Breaker Blocks.
On the chart: Edo Breaker Blocks →Bias
The prevailing directional lean of a market — bullish, bearish or neutral — that frames how you read every signal.
On the chart: Edo Sentiment Map →Bollinger Bands
Volatility bands plotted a number of standard deviations above and below a moving average; they expand and contract with volatility.
On the chart: Edo Bands Fusion →Break of Structure (BOS)
A break of structure: price closes beyond the last relevant swing in the direction of the prevailing trend, confirming continuation. Edo Smart Money Map marks each BOS automatically on closed bars.
On the chart: Edo Smart Money Map →Breaker block
An order block that has failed and inverted its polarity. A lost demand block becomes resistance and a taken-out supply block becomes support. Unlike a plain order block it has already proven its new role, which is why Edo Breaker Blocks draws only these and tracks each one as Active, Tested or Failed.
On the chart: Edo Breaker Blocks →Breakout
When price decisively leaves a range or breaks a key level, often starting a new directional move.
On the chart: Edo Swing Levels →Bullish breaker
A former supply order block — a resistance — that price has closed above. Once taken out, the zone inverts its role and acts as support: the sellers trapped inside it cover into every return. Drawn in teal below price by Edo Breaker Blocks.
On the chart: Edo Breaker Blocks →Bullish / Bearish
Bullish means leaning toward rising prices; bearish toward falling prices. The two basic directional states.
Buy-side liquidity
The pool of orders resting above a swing high — the stops of short positions and the breakout buy orders waiting there. Price often travels up to take it before reversing.
On the chart: Edo Liquidity Zones →Chikou Span
The lagging line of the Ichimoku system: the close plotted a number of bars back. Compared with past price, it confirms whether momentum agrees with the trend. Edo Ichimoku State reads it as part of its state engine.
On the chart: Edo Ichimoku State →Change of Character (CHoCH)
A change of character: price breaks structure against the prevailing bias, closing beyond the last swing on the opposite side. The first sign control may be shifting — often preceding a reversal. Edo Smart Money Map flips its panel bias on a CHoCH.
On the chart: Edo Smart Money Map →Cloud Flip
The moment the Ichimoku cloud changes colour as its leading spans cross — bullish to bearish or vice versa. Edo Ichimoku State flags it as an early change of regime.
On the chart: Edo Ichimoku State →Compression / Expansion
Compression is a quiet phase of tightening volatility; expansion is the release that often follows. Edo Bands tools flag both.
On the chart: Edo Bands Fusion →Confluence
When several independent reads — structure, a level, momentum, multiple timeframes — point the same way, strengthening a setup.
On the chart: Edo Momentum Confluence →Consensus score
A composite score (for example −8 to +8) that summarizes whether several timeframes or metrics agree on direction. Used in our premium dashboards; in Edo Multi-Anchor VWAP it carries a mean-reversion orientation, where positive means discount and negative means premium.
On the chart: Edo Multi-Anchor VWAP →Context
The bigger-picture read — trend direction, timeframe and the levels that matter — that a single signal can never give you on its own. The starting point of the Edolab method.
On the chart: Edo Control →Continuation
When price resumes its existing trend after a pause or pullback, rather than reversing.
On the chart: Edo SuperTrend Core →Crossover
When one line crosses another — for example a fast moving average crossing a slow one — used as a change-of-state signal. The basis of Edo EMA Core Cross and the TRIX crosses.
On the chart: Edo EMA Core Cross →Dashboard
An on-chart panel that summarizes an indicator's readings — states, scores, multi-timeframe bias — at a glance. The hallmark of our premium tools.
Dealing Range
The operating range price is moving inside, set by the most recent confirmed swing high and swing low. It is the reference against which premium and discount are measured.
On the chart: Edo Premium Discount →Demand zone
A price area where buying interest was strong enough to start a move up, usually the last bearish candle before a bullish impulse. Buyers who were not fully filled there tend to defend it when price comes back. In Edo Mitigation Blocks it is drawn as a teal Bull Block below the impulse.
On the chart: Edo Mitigation Blocks →Displacement
The impulse that confirms an order block: a close that exceeds the highest high (bullish) or breaks the lowest low (bearish) of a fixed number of recent candles, in the direction of the candle's own body. Edo Order Blocks detects zones this way.
On the chart: Edo Order Blocks →Divergence
When price and an oscillator disagree — price prints a new high, the indicator doesn't. An early warning that momentum is fading.
On the chart: Edo RSI Dual →Donchian Channels
Channels drawn from the highest high and lowest low over a chosen period; they map the recent trading range.
On the chart: Edo Bands Fusion →Double top / double bottom
The chart pattern behind equal levels: two highs (or two lows) that stall at practically the same price. Beyond that matched level sits the liquidity the pattern is known for.
On the chart: Edo Equal Highs/Lows →Dynamic support / resistance
Support or resistance that moves with price, such as a rising moving average, instead of a fixed horizontal level. The idea behind Edo Reaction Zones.
On the chart: Edo Reaction Zones →EMA (Exponential Moving Average)
A moving average that gives more weight to recent prices, so it reacts faster than a simple average. The basis of Edo EMA Core Cross.
On the chart: Edo EMA Core Cross →Equal Highs (EQH)
Two swing highs that sit at the same price within a tolerance. The matched level holds buy-side liquidity above it — the stops and breakout orders price is often drawn to take. Edo Equal Highs/Lows marks them automatically.
On the chart: Edo Equal Highs/Lows →Equal Lows (EQL)
Two swing lows that sit at the same price within a tolerance. The matched level holds sell-side liquidity below it, the mirror image of equal highs.
On the chart: Edo Equal Highs/Lows →Equilibrium
The central band of a range, around its 50% midpoint. Price there is neither expensive nor cheap relative to the range, so it offers no edge either way on that basis alone.
On the chart: Edo Premium Discount →Event VWAP
An anchored VWAP that resets automatically on the last detected swing instead of a fixed period, marking each reset with a diamond. It answers a precise question — since the last relevant turn in price, what is the volume-weighted average value? Edo Multi-Anchor VWAP plots it as one of its five anchors.
On the chart: Edo Multi-Anchor VWAP →Exhaustion
When a move runs out of strength — momentum fades, distance overextends — making a pause or reversal more likely.
On the chart: Edo Trend Maturity Engine →Fair value
The price a market is collectively willing to pay over a period, approximated by the volume-weighted average price. Trading far above or below it signals a premium or a discount.
On the chart: Edo Premium Discount →Fibonacci retracement
Retracement levels (0.382, 0.5, 0.618…) used to anticipate where a pullback may find support or resistance. Edo ZigZag Auto Fib SR plots them automatically.
On the chart: Edo ZigZag Auto Fib SR →Filtered signal
A trigger that is only plotted once it passes a set of structural checks. In Edo Cloud Signal Filter, each TK/KJ cross is confronted against four filters — side of the cloud, cloud bias, Chikou confirmation and MTF consensus — and only the crosses that survive are drawn as a triangle.
On the chart: Edo Cloud Signal Filter →Flip / inflection
An inflection point where a line's slope changes sign — a Flip Up or Flip Down.
On the chart: Edo HMA Core →Golden cross / Death cross
A golden cross is a bullish crossover of a faster average above a slower one; a death cross is the bearish opposite.
On the chart: Edo EMA Core Cross →Gradient
A colour scale that fades from one intensity to another. Edo SuperTrend Core fills the space between its line and price with a gradient in the trend colour.
On the chart: Edo SuperTrend Core →Heatmap
A compact visual that condenses multiple readings into colour, so context can be read at a glance. Edo Control presents a multi-timeframe heatmap.
On the chart: Edo Control →Higher high / Lower low
The building blocks of trend: rising highs and lows define an uptrend, falling highs and lows a downtrend. The language Edo Structure speaks.
On the chart: Edo Structure →Histogram
A bar plot of the distance between two lines (such as MACD and its signal, or A/D flow), making momentum shifts easy to see.
On the chart: Edo A/D Flow Core →Hull Moving Average (HMA)
A moving average engineered to react with minimal lag while staying smooth.
On the chart: Edo HMA Core →Ichimoku Kinko Hyo
A complete trend system built from five lines — Tenkan, Kijun, the two cloud spans and Chikou — that reads trend, momentum and support / resistance at once. The foundation of Edo Ichimoku State.
On the chart: Edo Ichimoku State →Invalidation level
The price beyond which a trading idea is wrong. In structure reading it is the swing level that holds the current trend up, and a close through it is the point where the idea is abandoned rather than defended.
On the chart: Edo Swing Levels →Kumo (Cloud)
The shaded "cloud" of the Ichimoku system, bounded by its two leading spans. Price above the Kumo is bullish, below is bearish, inside is undecided. Edo Ichimoku State reads its position and colour.
On the chart: Edo Ichimoku State →Lag
The delay between a price move and an indicator reacting to it. The Hull MA is designed to minimize lag while staying smooth.
On the chart: Edo HMA Core →Liquidity
Areas where orders cluster — above swing highs, below swing lows. Price often gravitates toward them before turning. Mapped by Edo Liquidity Zones.
On the chart: Edo Liquidity Zones →Liquidity sweep
A move where price wicks beyond a swing high or low to take the resting liquidity, then closes back on the other side — a classic trap that frequently precedes a reversal.
On the chart: Edo Liquidity Sweeps →MACD
Moving Average Convergence Divergence — a momentum oscillator built from the difference between two moving averages. Used in Edo Momentum Confluence.
On the chart: Edo Momentum Confluence →Market structure
The sequence of highs and lows that tells you whether a market is trending, ranging or reversing. The backbone of the Edolab approach — see Edo Structure.
On the chart: Edo Structure →Mean reversion
The tendency of price to return toward a central reference — a moving average or a VWAP — after stretching far from it. Extreme deviation bands often precede a reversion to fair value.
On the chart: Edo VWAP Core →Mitigation
A zone is mitigated when price returns to and interacts with it. In Edo Smart Money Map an order block moves from Active (untouched) to Mitigated once price reaches it by wick or close.
On the chart: Edo Smart Money Map →Mitigation block
An order block tracked through its retest. It is drawn as soon as the impulse that left it breaks structure, stays Pending while price is away, becomes Mitigated when price returns into the zone and turns Broken if price later closes through its far side. Edo Mitigation Blocks draws and tracks these.
On the chart: Edo Mitigation Blocks →Momentum
The speed and strength of a price move, independent of its direction — the how-hard, not the which-way.
On the chart: Edo RSI Dual →Money flow
A volume-weighted read of buying versus selling pressure. Edo Flow Consensus uses it to confirm the direction of the flow.
On the chart: Edo Flow Consensus →Moving average
A line that averages price over a chosen number of bars to smooth out noise and reveal the underlying direction.
On the chart: Edo EMA Core Cross →Multi-timeframe (MTF)
Reading the same instrument across several timeframes at once to confirm or question a setup before acting.
On the chart: Edo Control →Order Block
The last opposite candle before an impulsive move that breaks structure — the origin zone of the move. Drawn as a box, it acts as a supply or demand reference the market often revisits. Edo Smart Money Map draws Bull and Bear order blocks automatically.
On the chart: Edo Smart Money Map →Oscillator
An indicator that moves within a bounded range to measure momentum or overbought / oversold conditions — RSI, Stochastic and TRIX are oscillators.
On the chart: Edo RSI Dual →Overbought / Oversold
Conditions where price has moved far and fast enough that a pause or reversal becomes more likely. Oscillators flag them.
On the chart: Edo Multi Stoch →Overlay
An indicator drawn directly on the price chart (like a moving average or bands), as opposed to one in a separate pane.
Percentile
Where a current value sits within its own historical range, expressed 0–100. Edo Volatility Regime Engine reads band width as a percentile to gauge the volatility regime.
On the chart: Edo Volatility Regime Engine →Pivot
A confirmed turning point in price, used to anchor structure, zigzags and support / resistance zones.
On the chart: Edo Swing Levels →Polarity flip
The change of role a level undergoes when it breaks: support that is lost turns into resistance, resistance that is taken out turns into support. It happens because the orders that defended the level are now trapped on the wrong side of the market. A breaker block is the polarity flip of an order block.
On the chart: Edo Breaker Blocks →Premium / Discount
Whether price is trading expensive (premium) or cheap (discount) relative to a fair-value reference. That reference can be the midpoint of a dealing range, or an anchored VWAP: the reading is the same idea measured against different things.
On the chart: Edo Premium Discount →Pullback
A temporary move against the prevailing trend before it resumes — often a lower-risk entry point if structure holds.
On the chart: Edo Premium Discount →Quality score
A 0-to-100 rating computed for each candidate order block, combining body strength (30%), volume strength (30%), displacement strength (20%) and trend alignment vs. the EMA 50 (20%); zones below the Minimum Score are not drawn.
On the chart: Edo Order Blocks →Range
A phase where price moves sideways between a floor and a ceiling instead of trending.
On the chart: Edo Premium Discount →Resting liquidity
Orders already waiting in the book at a known level — stops beyond a high or a low, plus breakout orders. It does not move price by itself, but it is what a large participant reaches for when it needs to fill.
On the chart: Edo Liquidity Zones →Rate of Change (ROC)
How fast price (or an average) is moving over a set period. The Trend Velocity engine reads ROC to classify five momentum states.
On the chart: Edo Trend Velocity →Retest
Price returning to a level or zone it has already interacted with — a broken high, an order block, a range edge — to check whether it still holds. The reaction on the first retest is usually the most informative one, because nothing has consumed the orders resting there yet.
Reversal
A change in the prevailing direction of price, from up to down or vice versa — the opposite of a continuation.
On the chart: Edo Swing State →RSI (Relative Strength Index)
An oscillator measuring the speed and size of recent moves to gauge overbought / oversold conditions. Edo RSI Dual reads two at once.
On the chart: Edo RSI Dual →Sell-side liquidity
The pool of orders resting below a swing low — the stops of long positions and the breakout sell orders waiting there. Price often travels down to take it before reversing.
On the chart: Edo Liquidity Zones →Sentiment
The balance of buyer versus seller intent. Edo Sentiment Map translates it into a continuous scale.
On the chart: Edo Sentiment Map →Sigma distance (σ)
How many standard deviations price sits from its reference VWAP — a volatility-normalized z-score. It lets you compare overextension across assets regardless of their absolute price.
On the chart: Edo Bands Fusion →Signal line
A smoothed version of an oscillator used as a trigger: crosses between the oscillator and its signal line mark momentum shifts.
On the chart: Edo Momentum Confluence →Slope
The direction and steepness of a line such as a moving average — rising, falling or flat — used to classify the current state.
On the chart: Edo HMA Core →Stage
A labelled phase of the market cycle — accumulation, advance, distribution, decline. Edo Volatility Regime Engine tracks the stage of the volatility regime.
On the chart: Edo Volatility Regime Engine →Standard deviation
A statistical measure of how far price spreads from its average. Bollinger Bands are plotted a number of standard deviations from a moving average.
On the chart: Edo Bands Fusion →Stochastic
An oscillator comparing the close to its recent range to gauge momentum. Edo Multi Stoch reads four horizons in sync.
On the chart: Edo Multi Stoch →Stop run
A sharp move engineered to trigger clustered stop-loss orders beyond a swing point, taking their liquidity before price reverses — the mechanism behind a liquidity sweep.
On the chart: Edo Liquidity Sweeps →Strong level
Of the last swing high and swing low, the one that defends the current trend: the low in an uptrend, the high in a downtrend. As long as price does not close through it the structure is intact, so it works as the trend's invalidation line.
On the chart: Edo Swing Levels →Structure line
A continuous zigzag that joins confirmed swing pivots, drawing only the legs that run from one swing to the next. It filters the intermediate oscillation so the skeleton of the move — where price accelerates and where it stalls — can be read at a glance.
On the chart: Edo Swing State →SuperTrend
A trend-following overlay built on ATR that flips between bullish and bearish as price crosses its band. The core of Edo SuperTrend Core and Dashboard.
On the chart: Edo SuperTrend Core →Supply zone
A price area where selling interest was strong enough to start a move down, usually the last bullish candle before a bearish impulse. Sellers who were not fully filled there tend to defend it when price comes back. In Edo Mitigation Blocks it is drawn as a red Bear Block above the impulse.
On the chart: Edo Mitigation Blocks →Support / Resistance
Price zones where the market has repeatedly reacted — floors and ceilings that hold until they are decisively broken.
On the chart: Edo Reaction Zones →Swing high / Swing low
A local peak (swing high) or trough (swing low) significant enough to define structure. Pivots and ZigZags are built from swings.
On the chart: Edo Swing Levels →Swing High
A confirmed local peak: a bar whose high is above the highs of a set number of bars on each side. Confirmation needs those later bars to close, which is why a swing high is only known some bars after it forms.
On the chart: Edo Swing Levels →Swing Low
A confirmed local trough: a bar whose low is below the lows of a set number of bars on each side. Like a swing high, it is only confirmed once the bars to its right have closed.
On the chart: Edo Swing Levels →Swing profile
A single setting that fixes how many bars each side a pivot needs in order to be confirmed, and therefore how significant a turn has to be before it counts as a swing. A short profile marks many small swings for intraday work; a long one marks only the major turns for weekly and higher horizons.
On the chart: Edo Swing Levels →Tenkan-sen & Kijun-sen
The two fast lines of the Ichimoku system: the Tenkan (conversion) reacts quickly, the Kijun (base) more slowly. Their cross is a classic momentum trigger that Edo Ichimoku State tracks.
On the chart: Edo Ichimoku State →TK/KJ cross
The cross between the Tenkan-sen and the Kijun-sen — the classic Ichimoku momentum trigger. Edo Cloud Signal Filter filters every TK/KJ cross against four structural conditions before plotting it, so only the crosses that agree with the surrounding structure print.
On the chart: Edo Cloud Signal Filter →Trend
The dominant direction of price over a chosen timeframe — up, down or sideways. The first thing to establish, always.
On the chart: Edo SuperTrend Core →TRIX
A triple-smoothed momentum oscillator that filters out noise to highlight the underlying trend.
On the chart: Edo TRIX Core Cross →Volatility
How much and how fast price moves. Bands and ATR measure it; Edo Volatility Regime Engine tracks the whole volatility regime.
On the chart: Edo Volatility Regime Engine →Volatility regime
Whether the market is in a calm, normal or explosive volatility state. Edo Volatility Regime Engine classifies it with a stage tracker.
On the chart: Edo Volatility Regime Engine →VWAP
Volume Weighted Average Price — the average price of an asset weighted by the volume traded at each level. Unlike a simple moving average it reflects the real average price the market has paid, and it is the reference value behind Edo VWAP Core.
On the chart: Edo VWAP Core →Weak level
Of the last swing high and swing low, the one the trend is expected to take: the high in an uptrend, the low in a downtrend. Closing through it is continuation, not a change of trend, and it works as the natural target of the move.
On the chart: Edo Swing Levels →ZigZag
A tool that filters out minor moves and connects significant swing highs and lows to reveal structure. The base of Edo ZigZag Auto Fib SR.
On the chart: Edo ZigZag Auto Fib SR →Zone
A price area (rather than a single line) where the market is likely to react — support, resistance or liquidity. Used by Edo Liquidity Zones and Reaction Zones.
On the chart: Edo Liquidity Zones →