Crypto Pattern Basics: Terms, Abbreviations

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Cryptopatterns uses a lot of abbreviations and terms in our newsletter and charts.  Here’s a summary of terms and other basic information to help you improve your trading skills.  We’ve also added a BASICS – EDUCATIONAL category where we’ll tag posts that offer helpful (we think) fundamental information.

If you see anything on a post where something is unclear please write us at

cryptopatterns@gmail.com

You’re probably not the only reader who needs clarification, so we’ll add our answer here.  Just like all the information we share, we hope you find this information helpful in your understanding,  investing and trading the crypto market.

cryptopatterns terms and abbreviations

bears, bearish = price pattern or indicator likely to go down
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bulls bullish= price pattern or indicator likely to go up
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divergence= price, volume and/or indicators not in sync.  Example: Price going up while volume or some other indicator flat or down
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hs = head and shoulders pattern – generally bearish
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high prob = high probability – typical outcome figure 70% of the time
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ihs inverse head and shoulders pattern
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IT = Intermediate term trade length varies but typically 7-90 days
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large crypto = larger cryptocurrencies mostly traded on the USDT exchange on Poloniex platform
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low prob = the least likely path (but still possible)
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LT = long term trade -length varies by investor but typically 30-365+ days
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margin = The ability to borrow funds to trade – usually required to sell short.  Not recommended during LT bull markets and generally much higher risk — can lose more than you have in investment account.
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mod prob = moderate probability generally 51/49 edge
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pattern failure = price volume or indicator has violated pattern parameters AND confirmed by staying in violation for an additional period (period can vary depending on trade, could be hours, day or days)
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pattern target = pattern has achieved its anticpated target
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position management (pos mgmt) = Managing entries and scaling in and out of trades
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prob = probability or probabilities
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runner = last piece of investment in a trade that’s left in the trade until move clearly offers no more profit (or chance to recover loss) opporutnity
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scale in = developing an entry strategy for trades that invests money in phases.  example 30% then 30% then 40%
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scale out = developing a strategy for exiting trades example 30% off after 1st target reached (targets should be set for GAINS AND LOSSES) then 30% at 2nd target then 30% at agreesive target with 10% left over as “runner”
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small crypto = smaller cryptocurrencies mostly traded on the BTC exchange on Poloniex platform
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stop loss = specified price where you will exit trade
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stop loss range = a price range where you will execute a scale out strategy for trade
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ST = short term trade – length varies but typically 1 – 30 days
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target = price volume or indicator projected to be reached based on pattern
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trading strategy = specific trading plan for a particular trade and entire portfolio.  includes investment amounts, scale in strategy, stop loss range and/or scale out strategy.
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USDT = US dollar tethers.
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USDT Exchange = Exchange on the Poloniex platform that most charts are from
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vst = VERY short term trade = expected to last for minutes or hours. These are generally low probability trades and pattern trading VST generally far less reliable
volume = the number of currency (in dollars, btc or some currency…shares if stock) traded during a specified period
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This site is for informational and entertainment purposes only and not in any way intended to be investment or trading advice.  You are 100% responsible for your financial decisions at all times.  It is highly recommended you DO NOT  make any investment or trading decisions depending upon what you read on this blog/newsletter!
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