Trader's Dictionary: What is TVH and Main Trading Terms

To succeed in trading on financial markets, it is essential to understand key terminology. TVX is one of the most important concepts that every trader should know from the very first days of learning.

TVX — the foundation of any trading strategy

TVX (Entry Point) is the price at which a trader opens their position. In other words, it is the initial cost of the trade, which determines the subsequent profit or loss calculation. Identifying the correct entry point is a critical aspect of trading, as a mistake at this stage can lead to significant losses even before the price movement begins.

Basic trading directions: Long and Short

There are two main directions in trading. Long — buying an asset with the goal of selling it later at a higher price and profiting from the increase. Short — the opposite strategy, where the trader sells an asset expecting to buy it back cheaper and profit from the price decline. In both cases, setting the correct TVX is crucial for success.

Tools for protecting and locking in profits

After opening a position at the set TVX, traders use additional tools. Stop — a pending order placed in advance to limit losses if the market moves against the open position. When the price reaches the stop level, the position is automatically closed.

Take Profit (TP) — the opposite tool, allowing traders to lock in profits at a predetermined level. Together, Stop and Take Profit form a Setup — a complete trading scenario that includes the entry point (TVX), protection level, and target profit level.

Advanced market analysis concepts

As traders develop their skills, they encounter more complex concepts. MTF/STF refer to lower and higher timeframes — the periods used for analysis at different scales.

Trap — a situation where the market generates a false buy or sell signal, creating the illusion of a certain price movement, but then unexpectedly reverses direction. This is one of the most dangerous moments for a trader, especially if the TVX was chosen without considering this possibility.

Correction — a natural price movement against the main trend. Understanding the difference between a correction and a full market reversal helps traders set the TVX correctly and avoid opening positions at unfavorable points.