Trading Glossary
Every term you will see on WhipAlgo charts, in the guides and in the Discord, in plain English. Signals, trend strength, levels, timeframes and risk.
26 terms
Signals
- BUY / SELL
An early signal. The trend has flipped on your timeframe, but the broader trend has not agreed yet. A better price, with more risk.
Whip Trend Confirmation guide- CONFIRM BUY / CONFIRM SELL
A confirmed signal. The flip on your timeframe and the broader trend agree. A later entry, and the setup the system rates higher.
Whip Trend Confirmation guide- Trend flip
The moment the trend changes direction. Whip Trend Confirmation labels each flip once, so a new label means the trend actually changed.
- Final on candle close
A label can appear and disappear while a candle is still forming. Once the candle closes, the label is final and does not change. Act on closed candles.
- Confirmation trading
Waiting for a second, independent condition to agree before acting on a signal, such as a trend flip plus the broader trend. Fewer trades, fewer false starts.
Double confirmation trading
Strength (Whip Trend Core)
- Trend line
The main Whip Trend Core reading: buying pressure minus selling pressure. Above 0, buyers are winning. Below 0, sellers are.
Whip Trend Core guide- Balanced zone (±2)
Readings between -2 and +2. Neither side has a clear edge, so expect chop and wait for a break above +2 or below -2.
- Saturation
A reading beyond the saturation level (±8 by default). The move is stretched. It is a reason to stop chasing, not a signal that the trend will turn.
Choosing the saturation level- Buying and selling columns
Bars in the Trend Core panel showing who is pushing hard right now. Purple for buyers, black for sellers. Shrinking columns mean the push is fading.
- Divergence
Price makes a new high or low but the Trend line does not. The push behind the move is weakening, which often shows up before a flip.
Location (Whip Channel Pro + S/R)
- Channel
An adaptive band around price: a center line (fair value) with upper and lower boundaries. Near a boundary, price is stretched; at the center, it has room both ways.
Whip Channel Pro + S/R guide- Squeeze
The channel narrows to one of its tightest widths in a while. The market is quiet and coiling, and a bigger move often follows, in either direction.
- Breakout (expansion)
Price closes outside the range and the channel widens in that direction. Breakouts without a confirmed signal fail more often.
Avoiding false signals- Support and resistance (S1, R1 …)
Prices where buyers (support, below price) or sellers (resistance, above price) stepped in before. S1 and R1 are the nearest; S2 and R2 the next.
- Confluence level
A level more than one timeframe agrees on, tagged like (1H/4H) and drawn thicker. Usually the strongest levels on the chart.
- Broken level (flip)
A level price recently crossed, drawn dashed and stopping where price crossed it. Old resistance often becomes support, and the reverse.
- Stale level
A level price has not reacted to for a long time, drawn more faintly. It may matter less now.
Timeframes and risk
- Multi-timeframe reading
Reading the same market on more than one timeframe: 4H for direction, 1H for confirmation and 30m for timing. A 30m signal against the 4H trend is usually a pullback.
Multi-timeframe trading strategy- ATR (Average True Range)
The average size of each candle, a measure of volatility. Used to set stops that sit outside normal noise and to compare markets.
ATR indicator explained- Risk : reward
What you lose if the stop is hit compared with what you make at the target. A 4.00 stop and a 12.00 target is 1 : 3.
Position size calculator- Position size
How much to buy or sell so a stop-out costs a planned amount: the money you will risk divided by the distance from entry to stop.
Position size calculator- Leverage and margin
Leverage lets a smaller deposit (margin) control a larger position: $1,000 at 10x controls $10,000. It changes the margin you put up, not the dollars lost at the stop.
- Liquidation price
Where an exchange closes a leveraged position because the margin is used up. At 10x on isolated margin it sits roughly 9 to 10% from entry.
Plans
- Whip Signals
The signals plan: real-time trading signals and market analysis in the WhipAlgo Discord, for when you want the setups found for you.
Pricing- Full Suite
Everything in Whip Signals plus the three Whip indicators on your own TradingView charts, the setup guide and priority support.
Pricing- Invite-only script
A TradingView indicator you get access to by subscription. Once access is granted, it appears under Indicators, then Invite-only scripts.