Zed’s Trading Dictionary

  • 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.

  • 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.

  • 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.

  • 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.

  • 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.

  • 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.

  • 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.

  • 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.

  • 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.

  • Journal

    A record of trades and lessons learned.

    What Zed Teaches:

    Your journal is your personal trading coach.

  • 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.

  • 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.

  • 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.

  • NQ

    NASDAQ Futures.

    What Zed Teaches:

    The primary market used throughout Morphed Traderz education.

  • 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.

  • 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.

  • Quality Setup

    A trade that aligns with all required confirmations.

    What Zed Teaches:

    One quality trade beats ten emotional trades.

  • 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.

  • 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.

  • 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.

  • Unmitigated FVG

    A Fair Value Gap that has not yet been revisited.

    What Zed Teaches:

    These often become magnets for future price action.

  • Volatility

    The speed and size of price movement.

    What Zed Teaches:

    More volatility means more opportunity and more risk.

  • 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.

  • X-Factor

    The psychological edge separating consistent traders from emotional traders.

    What Zed Teaches:

    Mindset often determines success more than strategy.

  • 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.

  • 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."