Trading Terms Reference

These are educational definitions. They explain how each term is used in the Slow Burn Trader method. They are not trading signals or instructions.

Price Action

TermDescription
ImpulseA large directional candle with a full body. Used to see which side took control.
BalanceA small-bodied candle, or a run of them, where price moves sideways.
ImbalanceA move where one side clearly outweighs the other, up or down.
EquilibriumA period where buying and selling pressure are roughly even.

Timeframes

TimeframeDescription
MonthlyThe broad structure. Shows where price sits in the larger picture.
WeeklyConfirms the trend and whether the timeframes agree.
DailyWhere setups are reviewed and planned.
Multi-timeframe alignmentWhen the same area appears on more than one timeframe.

Zones and Order Flow

TermDescription
Institutional order flow (IOF)Areas where large buy or sell orders were likely placed. The method looks for these areas on the chart.
Supply zoneAn area where sellers were dominant. Marked in red on our charts.
Demand zoneAn area where buyers were dominant. Marked in green on our charts.
Unfilled orders (UFOs)Orders that were not fully filled at a level. The method watches for price to return to that level.
Block orderA large order. The method focuses on institutional size, not retail size.

Trade Structure

TermDescription
Risk-to-reward ratioPotential gain compared with potential loss on a planned trade. The method uses a 3:1 minimum and passes on any setup below it.
RetestPrice returning to an earlier zone after leaving it.
Liquidity trapA move that runs through obvious stop levels before reversing. Reviewed to avoid being caught in it.

Patterns

TermDescription
Impulse-balance-impulseA strong move, a pause, then a strong move in the opposite direction.
Pivot reversalA change in direction that marks a possible area of interest.
Breakaway gapA large gap away from a consolidation area. Treated as a strong imbalance.
CandlestickA price bar showing the open, high, low, and close for a set period.

Trend

TermDescription
UptrendHigher highs and higher lows.
DowntrendLower highs and lower lows.
Non-directionalNo clear trend. Changes how a setup is approached.