Glossary

Camarilla Equation – a trading method discovered in 1989 by Nick Stott a successful bond trader in the financial markets. The ‘Camarilla’ equation quite simply expounds the theory that markets, like most time series, have a tendency to revert to the mean

Gartley – a powerful reversal trading pattern. It is named after H. M. Gartley who wrote a book in 1935 called “Profits in the Stock Market”.

Market profile – a graphic displaying price and volume on the vertical axis, with cleared price activity on the horizontal broken down by trading period.

Murrey Math – a trading system for all equities. This includes stocks, bonds, futures (index, commodities, and currencies), and options. The main assumption in Murrey Math is that all markets behave in the same manner (i.e. All markets are traded by a mob and hence have similar characteristics.). The Murrey Math trading system is primarily based upon the observations made by W.D. Gann in the first half of the 20′th century.

TD Lines – a technique developed by Tom DeMark and detailed in his books The New Science of Technical Analysis (John Wiley & Sons, 1994) and DeMark on Day Trading Options (McGraw-Hill, 1999). The complete methodology includes objective rules for plotting trendlines, rules for validating them, and rules to determine whether to trade or fade a trendline break.