Fair Value Gap
A three-candle pattern where the first candle's wick and the third candle's wick do not overlap, leaving a price range that traded through in one direction only. It marks an imbalance — an area price moved through too fast for two-sided trade.
Gaps frequently get revisited, so traders use them as targets or as entries on the fill. They are not magic: an imbalance is simply a place where little business was done, and price often returns to do it.
Liquidity Sweep
A move that pushes just beyond an obvious high or low — where stop orders cluster — and then immediately reverses. The break triggers those stops, providing the volume a larger participant needs to fill, after which price returns inside the range.
A sweep that reclaims the level quickly is a reversal signal; one that holds beyond it is a genuine break. The difference is the reclaim, and confusing the two is the single most expensive mistake in this whole framework.
Break of Structure
Price closing beyond the most recent swing high in an uptrend, or swing low in a downtrend — confirming the existing trend is continuing. A BOS is trend continuation, not reversal, and it requires a close rather than a wick.
A BOS tells you the direction still has control, so pullbacks are worth buying rather than fading. Traders mark the broken level and treat it as support on the retest.
Change of Character
The first break against the prevailing trend — an uptrend making a lower low, or a downtrend a higher high. Where a break of structure confirms continuation, a change of character is the earliest structural warning that control may be shifting.
A CHoCH is a signal to stop taking trend continuations, not a signal to reverse immediately. Traders wait for structure to build in the new direction before treating it as a trend.
Premium & Discount
The dealing range split at its midpoint. Above the 50% mark is premium — expensive for buyers; below is discount — cheap for buyers. The framework says to buy in discount and sell in premium, relative to the range you are trading.
It is a location filter, and the most useful thing in the toolkit. A perfect setup bought in premium has a worse risk-to-reward than the same setup bought in discount, which is why location is scored separately.
Killzones
Specific windows when institutional volume concentrates — typically the London open, the New York open, and the London close. The claim is that the day's decisive moves usually originate in these windows rather than in the quiet hours between them.
Useful as a filter on when to trade rather than what to trade. The underlying fact is real — liquidity genuinely concentrates around session opens — even where the terminology around it is oversold.