Furu to Guru

A user posted a comment in a previous post asking if I could explain the abbreviations and terms that I use in my posts, which I completely understand. And that's the goal of this post, to thoroughly explain the abbreviations, acronyms, and terms that I use on a daily basis. If you think I missed something or if there's a term you'd like me to explain in more detail, please let me know in the comments section below! Trend      Consists of higher highs and higher lows (bull trend) or lower highs and lower lows (bear trend). Trading range      Consists of sideways price action, big up, big down, failed breakouts, and big confusion. Channel      A channel is synonymous with a trend. For example, a bull channel is a bull trend. Trend bar      A trend bar either closes above its open (bull trend bar) or below its open (bear trend bar). Doji bar      A doji bar opens then closes near its open (one bar trading range).

When it comes to a great trading system, just about every successful trader can agree on one characteristic: KISS (keep it simple stupid). Furthermore, a significant body of research in cognitive science highlights the limited capacity of the human brain and how difficult it is to retain even a few pieces of information in working memory ( check out Dr. Brett's article for example ). Because of these points, I wanted to condense my own detailed trading system down to its most crucial points. If I can succeed in creating a simple trading system that can be intuitively recalled in the heat of trading, I stand to gain immense confidence and decisiveness in the face of rapidly changing price action, horrendous volatility, and seemingly unpredictable markets. What I learned while trying to condense my trading system into a simpler form is that it ain't easy. It takes a lot of effort! Additionally, simplicity isn't enough on its own. I realized over time that I had to pair sim