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.
Accumulation / Distribution
Phases where positions are quietly built (accumulation) or unloaded (distribution) before a larger move shows on the chart.
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.
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.
Band width
The distance between the upper and lower volatility bands. Narrow width signals compression; widening signals expansion.
Bias
The prevailing directional lean of a market — bullish, bearish or neutral — that frames how you read every signal.
Bollinger Bands
Volatility bands plotted a number of standard deviations above and below a moving average; they expand and contract with volatility.
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.
Breakout
When price decisively leaves a range or breaks a key level, often starting a new directional move.
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.
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.
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.
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.
Compression / Expansion
Compression is a quiet phase of tightening volatility; expansion is the release that often follows. Edo Bands tools flag both.
Confluence
When several independent reads — structure, a level, momentum, multiple timeframes — point the same way, strengthening a setup.
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.
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.
Continuation
When price resumes its existing trend after a pause or pullback, rather than reversing.
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.
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.
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.
Divergence
When price and an oscillator disagree — price prints a new high, the indicator doesn't. An early warning that momentum is fading.
Donchian Channels
Channels drawn from the highest high and lowest low over a chosen period; they map the recent trading range.
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.
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.
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.
Exhaustion
When a move runs out of strength — momentum fades, distance overextends — making a pause or reversal more likely.
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.
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.
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.
Flip / inflection
An inflection point where a line's slope changes sign — a Flip Up or Flip Down.
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.
Gradient
A colour scale that encodes the strength of a reading. Edo SuperTrend Core shades its trend with an RSI gradient.
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.
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.
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.
Hull Moving Average (HMA)
A moving average engineered to react with minimal lag while staying smooth.
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.
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.
Lag
The delay between a price move and an indicator reacting to it. The Hull MA is designed to minimize lag while staying smooth.
Liquidity
Areas where orders cluster — above swing highs, below swing lows. Price often gravitates toward them before turning. Mapped by 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.
MACD
Moving Average Convergence Divergence — a momentum oscillator built from the difference between two moving averages. Used in 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.
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.
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.
Momentum
The speed and strength of a price move, independent of its direction — the how-hard, not the which-way.
Money flow
A volume-weighted read of buying versus selling pressure. Edo Flow Consensus uses it to confirm the direction of the flow.
Moving average
A line that averages price over a chosen number of bars to smooth out noise and reveal the underlying direction.
Multi-timeframe (MTF)
Reading the same instrument across several timeframes at once to confirm or question a setup before acting.
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.
Oscillator
An indicator that moves within a bounded range to measure momentum or overbought / oversold conditions — RSI, Stochastic and TRIX are oscillators.
Overbought / Oversold
Conditions where price has moved far and fast enough that a pause or reversal becomes more likely. Oscillators flag them.
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.
Pivot
A confirmed turning point in price, used to anchor structure, zigzags and support / resistance zones.
Premium / Discount
Whether price is trading expensive (premium) or cheap (discount) relative to a fair-value reference.
Pullback
A temporary move against the prevailing trend before it resumes — often a lower-risk entry point if structure holds.
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.
Range
A phase where price moves sideways between a floor and a ceiling instead of trending.
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.
Reversal
A change in the prevailing direction of price, from up to down or vice versa — the opposite of a continuation.
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.
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.
Sentiment
The balance of buyer versus seller intent. Edo Sentiment Map translates it into a continuous scale.
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.
Signal line
A smoothed version of an oscillator used as a trigger: crosses between the oscillator and its signal line mark momentum shifts.
Slope
The direction and steepness of a line such as a moving average — rising, falling or flat — used to classify the current state.
Stage
A labelled phase of the market cycle — accumulation, advance, distribution, decline. Edo Volatility Regime Engine tracks the stage of the volatility regime.
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.
Stochastic
An oscillator comparing the close to its recent range to gauge momentum. Edo Multi Stoch reads four horizons in sync.
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.
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.
Support / Resistance
Price zones where the market has repeatedly reacted — floors and ceilings that hold until they are decisively broken.
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.
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.
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.
Trend
The dominant direction of price over a chosen timeframe — up, down or sideways. The first thing to establish, always.
TRIX
A triple-smoothed momentum oscillator that filters out noise to highlight the underlying trend.
Volatility
How much and how fast price moves. Bands and ATR measure it; Edo Volatility Regime Engine tracks the whole volatility regime.
Volatility regime
Whether the market is in a calm, normal or explosive volatility state. Edo Volatility Regime Engine classifies it with a stage tracker.
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.
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.
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.