Glossary of Princeton Terminology

Terms Used In Princeton Forecasting Reports

TURNING POINT

A target that can be either a high or a low. It is a cyclical target that amounts to a turning point irrespective of the event (high/low).

VOLATILITY

Volatility can be measured in many ways. We have volatility that can be from the previous close to the next open, high to low within the same session, or a previous close to the current close. Hence, volatility can take many forms.

PANIC CYCLE

A Panic Cycle is a target that normally exceeds either one direction up or down forcefully, but it is also a target that can be an OUTSIDE REVERSAL either to the upside or downside (meaning it exceeds the the previous session high and penetrates the low). Hence, a Panic Cycle can be a move either to the upside whereby it begins lower than the previous session and then exceeds the high or a outside reversal to the downside whereby it begins strong exceeding the previous high and then penetrating the previous low.

OUTSIDE REVERSAL

A trading session that exceeds the previous high or low and thus it can be a session that exceeds both directions.

Cyclical Strength:

Indicates the strength of time-related trends. This indicator tends to pick highs and lows in extremely volatile moves (see “How to Use the Indicating Ranges”).

Long-term Trend:

The long-term direction of a market (see “How to Use the Indicating Ranges”).

Momentum: 

The market’s ability to move quickly in either direction (speed) (see “How to Use the Indicating Ranges”).

System Support/Resistance:

Refers to levels of market support or resistance as represented by the PEl REVERSAL SYSTEM and the PEl INDICATING RANGES (see “How to Use the Reversal System” and “How to Use the Indicating Ranges”).

Technical Support/Resistance: 

Refers to levels of market support or resistance as determined through chart analysis (see ”Technical Trading Lines”).

Princeton Bifurcation Analysis: 

Refers to a proprietary methodology developed by Princeton Economics which attempts to find a specific point in time and price that acts as a “strange attractor” in market or economic movement.

Trading Orders Used in PEl Reports

1. BXCO (Buy Stop Close Only)

Example: BUY YEN 73.25BXCO. An order to buy Yen only if the close is at 73.25 or HIGHER.

This type of order would be used if our computer models indicated that a close at or ABOVE a specific price would warn of a breakout to the upside.

2. GTC (Good Till Cancelled)

Example: BUY GOLD 375.60BXCO GTC (OR SELL GOLD 366.60SXCO GTC). GTC orders are used when the order is to remain in force for longer than 1 day. Usually, all orders are day orders and expire at the end of that day if they are not filled. Entering a GTC order signifies that the order is to remain in force until it is either filled or the order is cancelled. This is also called an “OPEN” order.

3. GTW (Good Through the Week)

Example: BUY GOLD 375.60BXCO GTW (OR SELL GOLD 366.60SXCO GTW). Same explanation as above except the order will be cancelled at the end of the current week if not executed.

4. IDBX (Intraday Buy Stop)

Example: BUY YEN 73.35 IDBX. An order to buy Yen only if it trades at a price of 73.35 or HIGHER. This order would be placed above the current price and be used to initiate a long position.

5. IDSX (Intraday Sell Stop)

Example: SELL YEN 73.35 IDSX. An order to sell Yen only if it trades at a price of 73.35 or LOWER. This order would be placed below the current price and be used to initiate a short position.

6. IDPBX (Intraday Protective Buy Stop)

Example: BUY GOLD 371.5IDPBX. This order would be used to protect a short position against an unexpected move to the upside. The short position would be covered (bought back) only if Gold rose to a price of at least 371.5. If this occurred, then the order would become a market (buy at the prevailing price) order and the short position would be closed (offset). This type of order is usually placed as soon as the original short position is entered into.

7. IDPSX (Intraday Protective Sell Stop)

Example: SELL GOLD 366.5 IDPSX. This order is used to protect a long position against an unexpected move to the downside. The long position would be liquidated (sold out) only if Gold fell to 366.5 at which time the order would become a market order to sell. This type of order is usually placed as soon as the original long position is entered.

8. LIMIT

Example: SELL S&P 374.45 IDSX 37145 LIMIT. An IDSX is entered at 374.45, but may not be executed below 371.45.A limit establishes a maximum price level beyond which the order may not be executed.

9. MIT (Market If Touched)

Example: BUY SWISSFRANCS 62.20MIT. An order to Buy is placed BELOW the current market price. If the market trades DOWN to this price or LOWER, a market order will be executed by the broker. This type of order is used for profit taking for a short position. It could also be used for entry into a long position.

Example: SELL YEN 75.25MIT. An order to SELL is placed ABOVE the current market price. If the market trades UP to this price or HIGHER, a market order to sell will be executed by the broker. This type of order is used for profit taking for a long position. It could also be used for entry into a short position.

10. OCO (One Cancels the Other)

Example: BUY CRUDE OIL 22.31 IDPBX OCO 21.91PBXCO. This is a dual order consisting of an INTRADAY PROTECTIVE BUY STOP (IDPBX) and a PROTECTIVE BUY STOP CLOSE ONLY (PBXCO). The IDPBX will always be at a higher price than the PBXCO. Execution of ONE order will CANCEL the OTHER order. (OCO)

Example: SELL GOLD 362.4 IDPSX OCO 364.5 PSXCO. This is a dual order consisting on an INTRADAY PROTECTIVE SELL STOP (IDPSX) and a PROTECTIVE SELL STOP CLOSE ONLY (PSXCO). The IDPSX will always be at a lower price than the PSXCO. Execution of ONE order will CANCEL the OTIIER order. (OCO)

11. PBXCO (Protective Buy Stop Close Only)

Example: BUY GOLD 369.5PBXCO. Unlike the IDPBX, this order is only executed on the close. The short position would be closed out (bought) only if the closing range of the market was ATLEAST 369.5 or HIGHER. This order would be used if our models indicated that a CLOSE at or ABOVE this price indicated a change in trend and a short position was no longer warranted.

12. PSXCO (Protective Sell Stop Close Only)

Example: SELL STERLING 159.80PSXCO. A long position in Sterling would be closed (sold) if the closing range of Sterling was AT LEAST 159.80 or LOWER. This order would be used if our models indicated that a CLOSE at or BELOW this price indicated a change in trend and a long position was no longer warranted.

13. SXCO (Sell Stop Close Only)

Example: SELL D-MARKS 55.22 SXCO. An order to sell D-marks only if the close is at 55.22 or LOWER. This order would be used if our computer models indicated that a close at or BELOW a specific price would warn of a downward move.