Zed’s Trading Dictionary
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Accumulation
A phase where larger participants quietly build positions before a major move.
What Zed Teaches:
Accumulation often looks boring. The biggest moves usually start when the market appears to be doing nothing.
Aggressive Entry
Entering a trade before all confirmations have formed.
What Zed Teaches:
Higher reward potential, but lower probability.
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Bearish
Market conditions favoring sellers.
What Zed Teaches:
A bearish trader looks for short opportunities and lower prices.
Bullish
Market conditions favoring buyers.
What Zed Teaches:
A bullish trader looks for long opportunities and higher prices.
BOS (Break of Structure)
When price breaks a significant swing high or swing low, confirming potential continuation.
What Zed Teaches:
Structure breaks tell us who currently controls the market.
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Candle
A visual representation of price movement during a specific period.
What Zed Teaches:
Every candle tells a story. Learn to read the story, not just the color.
CHoCH (Change of Character)
An early signal that market direction may be shifting.
What Zed Teaches:
CHoCH is a warning, not a guarantee.
Confirmation
Evidence that supports a trade idea.
What Zed Teaches:
Never trade assumptions. Trade confirmations.
Consolidation
A period where price moves sideways.
What Zed Teaches:
Consolidation is the market charging its battery before the next move.
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Discount
The lower half of a trading range.
What Zed Teaches:
Discount is where buyers often look for value.
Distribution
A phase where larger participants reduce positions before a decline.
What Zed Teaches:
Distribution often happens near highs while retail traders are becoming excited.
Drawdown
The decline from an account's peak value.
What Zed Teaches:
Drawdowns are part of trading. Survival matters more than perfection.
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Entry
The price where a trade is opened.
What Zed Teaches:
Entries should come after confirmations, not emotions.
Execution
The process of placing and managing a trade.
What Zed Teaches:
A great setup means nothing without disciplined execution.
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Fair Value Gap (FVG)
An imbalance left behind after aggressive movement.
What Zed Teaches:
Price often revisits FVGs before continuing.
False Breakout (FB)
A breakout that quickly fails.
What Zed Teaches:
Many traps begin with a false breakout.
Fibonacci
A retracement tool used to identify potential reaction levels.
What Zed Teaches:
The Fib helps us measure where price may retrace before continuing.
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Golden Zone
Typically between the 0.5 and 0.618 Fibonacci levels.
What Zed Teaches:
This is where many of the best Auntie DD setups begin developing.
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Higher High (HH)
A new high above the previous high.
What Zed Teaches:
A sign of bullish market structure.
Higher Low (HL)
A low that forms above the previous low.
What Zed Teaches:
Bull markets build staircases upward.
HTF (Higher Time Frame)
A larger chart timeframe such as 15m, 1H, or 4H.
What Zed Teaches:
Higher timeframes carry more authority.
HTF CHoCH
A Change of Character occurring on a higher timeframe.
What Zed Teaches:
This often gets our attention before looking for entries.
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Imbalance
A rapid move leaving inefficient price delivery.
What Zed Teaches:
Price often revisits imbalances before moving on.
Indecision Candle
A candle showing uncertainty.
What Zed Teaches:
Indecision at key levels can be powerful confirmation.
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Journal
A record of trades and lessons learned.
What Zed Teaches:
Your journal is your personal trading coach.
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Kill Zone
A time period known for higher market activity.
Examples: London Open, New York Open
What Zed Teaches:
Liquidity and opportunity often increase during kill zones.
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Liquidity
Areas containing stop losses and pending orders.
What Zed Teaches:
Liquidity attracts price.
Liquidity Sweep
A move designed to capture liquidity before reversing.
What Zed Teaches:
The sweep is often the trap before the opportunity.
Long Position
A trade expecting price to rise.
What Zed Teaches:
Buy low, sell higher.
Lower High (LH)
A high below the previous high.
What Zed Teaches:
A sign of bearish structure.
Lower Low (LL)
A low below the previous low.
What Zed Teaches:
A sign of bearish continuation.
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Market Structure
The pattern of highs and lows that defines trend direction.
What Zed Teaches:
Structure is the foundation of every trade.
Momentum
The strength behind a price move.
What Zed Teaches:
Strong momentum shows commitment from market participants.
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NQ
NASDAQ Futures.
What Zed Teaches:
The primary market used throughout Morphed Traderz education.
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Order Flow
The interaction between buyers and sellers.
What Zed Teaches:
Price moves because orders are being filled.
Overtrading
Taking too many trades.
What Zed Teaches:
More trades do not equal more profits.
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Patience
Waiting for a complete setup.
What Zed Teaches:
Patience pays traders. Impatience pays the market.
Premium
The upper half of a trading range.
What Zed Teaches:
Premium is where price becomes expensive.
Pullback
A temporary move against the trend.
What Zed Teaches:
Pullbacks often create opportunities.
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Quality Setup
A trade that aligns with all required confirmations.
What Zed Teaches:
One quality trade beats ten emotional trades.
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Range
The area between a defined high and low.
What Zed Teaches:
Know where price sits within the range before trading.
Rejection
Price failing to continue through a level.
What Zed Teaches:
Strong rejection equals strong information.
Resistance
An area where sellers may defend price.
What Zed Teaches:
Think zones, not exact lines.
Retest
Price revisiting a broken level.
What Zed Teaches:
Retests often provide safer entries.
Risk Management
Controlling potential losses.
What Zed Teaches:
Protecting capital is the first job of a trader.
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Scalping
Taking quick trades for smaller moves.
What Zed Teaches:
Fast profits require fast discipline.
Short Position
A trade expecting price to fall.
What Zed Teaches:
Sell high, buy lower.
Stop Loss
A predetermined exit level if wrong.
What Zed Teaches:
A stop loss protects both capital and emotions.
Support
An area where buyers may defend price.
What Zed Teaches:
Support is a zone, not a magic line.
S/R Zone
Support and Resistance area.
What Zed Teaches:
Price respects areas more often than exact prices.
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Take Profit (TP)
A level where profits are secured.
What Zed Teaches:
Profits are not real until they are taken.
Trend
The overall direction of the market.
What Zed Teaches:
Trade with the trend whenever possible.
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Unmitigated FVG
A Fair Value Gap that has not yet been revisited.
What Zed Teaches:
These often become magnets for future price action.
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Volatility
The speed and size of price movement.
What Zed Teaches:
More volatility means more opportunity and more risk.
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Wick
The shadow of a candle.
What Zed Teaches:
Wicks reveal where price has moved within a candle.
Win Rate
The percentage of winning trades.
What Zed Teaches:
Profitability matters more than win rate.
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X-Factor
The psychological edge separating consistent traders from emotional traders.
What Zed Teaches:
Mindset often determines success more than strategy.
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Yielding to the Market
Accepting what price is showing instead of forcing an opinion.
What Zed Teaches:
Trade what you see, not what you want.
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Zed's Golden Rule
"The market doesn't owe you a trade. Let it tell its story first, then decide if you want to be part of it."