Reference

Trading Glossary

Plain-English definitions of the futures and smart money concepts we teach. We define jargon — we don't hide behind it.

BISI / SIBI: Buy-Side Imbalance, Sell-Side Inefficiency (bullish FVG) and Sell-Side Imbalance, Buy-Side Inefficiency (bearish FVG) — the directional labels for fair value gaps.
Consequent Encroachment (CE): The 50% midpoint of a fair value gap. Price reacting to the CE rather than the full gap is a precision read used for entries and targets.
Displacement: A strong, decisive move that breaks structure and typically leaves a fair value gap behind — evidence of intent rather than noise.
Drawdown: The peak-to-trough decline in account equity. Controlling drawdown is central to survival — a 50% loss requires a 100% gain just to recover.
Expectancy: The average expected return per trade: (Win% × Avg Win) − (Loss% × Avg Loss), measured in R. Positive, rising expectancy — not win rate — determines profitability.
Fair Value Gap (FVG): A three-candle price imbalance where the wicks of the first and third candle do not overlap, leaving an inefficiency the market often returns to fill. Bullish (BISI) or bearish (SIBI).
Killzone: A defined high-probability time window for trading (e.g., the morning macro or the 10:00 window). 'Time first, then price' — setups are only hunted at the right times.
Liquidity: Resting orders above old highs (buy-side) and below old lows (sell-side). Markets are drawn toward liquidity; identifying the 'draw on liquidity' frames a session's bias.
Opening Range Gap (ORG): The gap between the prior session's settlement and the new session's open, used as a reference level and the basis of a core Blueprint setup.
Order Block: The last opposing candle before a strong, displacing move. Defined by specific body-based prices (not a loose zone), often acting as support or resistance on return.
Plan Adherence: The percentage of trades that fully followed your written plan. The headline discipline metric — a target of ≥90% — and a better signal of skill than P&L.
Premium / Discount (PD Array): Relative to a dealing range's equilibrium (50%), price above is at a premium and below is at a discount. The Blueprint buys discount and sells premium, not the reverse.
R-Multiple: Profit or loss expressed in units of initial risk (R). Thinking in R keeps dollar amounts from clouding judgment.
Trailing Drawdown: A funded-account rule where the maximum loss threshold trails your highest balance, tightening as you profit. A common reason traders pass a challenge but fail to keep the account.

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