Our Craft Language

Key terms and concepts used in the Fractal Edge Framework and Dr. Ken Long's trading methodology.

ATR (Average True Range)
A volatility indicator that measures the average price range over a specified period, used for assessing risk and setting stop losses, and for determining position sizes.
Bollinger Bands
A volatility indicator based on the standard deviation of closing prices over a lookback period. Used to determine when prices are outside one standard deviation or stretched at three standard deviations or higher.
Collapsing Dragon
A core pattern. Bearish signal indicating the reversal attempt to the upside is failing and price is likely to fall back and continue the primary downtrend.
Craft Knowledge
Practical skills and experience gained from doing something over and over, combining the 'art' and 'science' of trading into actionable techniques.
Doji
A candlestick pattern with a small body and roughly equal upper and lower wicks, indicating market indecision. On a daily time frame, a Doji suggests potentially large moves the next day when price breaks outside the zone. Dr. Long's command: 'Green Doji Go.'
FQN (Frog Quality Number)
A statistical indicator measuring the desirability of stocks for intraday trading. Higher FQN = directional price movements; low FQN = choppy action. Symbols with FQN 3.0+ are highlighted in Dr. Long's nightly analysis.
Owl
A core pattern. Bullish signal indicating the breakout of price to the upside.
R (Risk/Reward)
A measure of risk — the maximum amount that can be lost if the trade fails. Also used as a unit of reward multiples. Risking $200 = 1R. A $300 gain = 1.5R.
Supported Fall Crossing (SFC)
A core pattern. Bearish signal expecting a reversal of the most recent uptrend.
Supported Spring Crossing (SSC)
A core pattern. Bullish signal indicating the reversal of the most recent downtrend.
TC2000
A trading analysis, charting, scanning, and trade execution platform used by the Fractal Edge Framework team.