Value Area – The area where 70% of the previous day’s activity took place.

Point of Control (POC) – The longest line of TPO’s closest to the center of the range. This is the price where the most activity occurred during the day, and is therefore the fairest price in the day timeframe.

Value Area High (VAH) – The highest price within the value area.

Value Area Low (VAL) – The lowest price within the value area.

Developing Value Area – The value area being created (developed) today. Will change as the day goes on.

Developing Point of Control (Dev POC) – Today’s changing POC

Developing Value Area High (Dev VAH) – Today’s highest price in the developing value area.

Developing Value Area Low (Dev VAL) – Today’s lowest price in the developing value area.

TPO’s (Brackets) – Each half-hour of the trading day is designated by a letter. If a certain price is traded during a given half-hour, the corresponding letter, or TPO, is marked next to the price.

Initial Balance Area (IB) – The price range resulting from market activity during the first two time periods (the first hour).

Double the Initial Balance (Dynamic Support/Resistance) – Take the range of the initial balance area added to the high of the initial balance area = dynamic resistance. Subtract from the low of the initial balance area = dynamic support.

Range Extension Up – Price trades at least 3 ticks above the high of the initial balance area.

Range Extension Down – Price trades at least 3 ticks below the low of the initial balance area.

Single Ticks – A price that has been traded at during only one half hour (TPO) time frame. Significant when occurs inside the distribution curve.

Neutral Day – A day that has range extension to both sides. 2nd range extension will probably not go very far.

Normal Day (Normal Distribution) – Usually has a very large initial balance area. A day that has no range extension to either side. Any range extension comes very late in the day and does usually not got very far.

Normal Variation Day – Has range extension to only 1 side.

Initial Range - The range of the first minute of trading of the RTH session. (See also Opening Range Trade.)

MacGyver - Try to work a better position by adding to a losing trade and placing a break-even exit order for the original trade.