Standalone reference
QMS dictionary
Core terms used across the QT Trading Lab curriculum. Open a term for related concepts, where the course teaches it, and a diagram where there is one.
39 terms
QMSFramework Quantitative Market Structure: the QT Trading Lab framework for measuring expansion, failure, rejection, acceptance, and transition.
SETFramework Structural Expansion Theory: the idea that trend is confirmed by measurable expansion beyond prior structure.
120 RuleStructure A QMS rule requiring a candle body close past the 127.2 level to confirm structural expansion. The rule keeps the name 120; the level it measures is the 127.2.
0 LevelStructure The starting point of the measured swing. In a bullish setup this is the swing low; in a bearish setup this is the swing high.
100 LevelStructure Completion of the prior swing. It marks the full prior structural move before expansion is measured.
120 LevelStructure The fib tool’s 120% line. It is not a QMS rule level — the 120 Rule measures the 127.2 — but some entry models use it to measure a reaction: a wick past the 127.2 that closes back inside the 120. That is a preference, not a requirement.
ELStructure Expansion Low: a low that produces an expansion beyond the 127.2 level of the immediate high. Becomes the 0 anchor for the next bullish measurement.
EHStructure Expansion High: a high that produces an expansion beyond the 127.2 level of the immediate low. Becomes the 0 anchor for the next bearish measurement.
Failure HighStructure A swing high that fails to expand beyond the 127.2 level of the immediate low. It is the contrast case to an EH, marks a stall in expansion, and is often where CHoCH risk first appears.
Failure LowStructure A swing low that fails to expand beyond the 127.2 level of the immediate high. It is the contrast case to an EL, marks a stall in expansion, and is often where CHoCH risk first appears.
Base CandleStructure The opposing-direction candle immediately preceding a confirmed expansion leg; its body anchors the minimum pullback depth for an ARM retest. In a trending market, structure reads as a repeating base → expansion sequence.
Comparable to what other frameworks call an order block, but defined here by measured rules rather than a drawn zone: it is the last counter-trend candle before a confirmed EL or EH, and the ARM entry requires price to pull back at least into its body.
VSLStructure Validated Structural Low: the low immediately preceding an EL. A VSL violation is a trade-through only; it does not require its own 127.2 close.
VSHStructure Validated Structural High: the high immediately preceding an EH. A VSH violation is a trade-through only; it does not require its own 127.2 close.
BOSStructure Break of Structure: a break in the direction of the current trend that supports continuation.
CHoCHStructure Change of Character: a confirmed directional flip. It requires structural invalidation by a close past the inverted 127.2 plus violation of the last VSH or VSL.
127.2 LevelExpansion The level the 120 Rule measures, and where the continuation entry is taken: a candle body close past it confirms structural expansion. The rule is named for the 120 because it is quicker to say, but the measurement is the 127.2.
138.2 LevelExpansion A stronger expansion extension that signals more forceful continuation beyond the prior structural range.
161.8 LevelExpansion An extreme expansion extension often used to identify stretched or highly directional conditions.
ExpansionMarket State A confirmed directional move produced by a candle body close past the 127.2 level of the prior structure.
AcceptanceMarket State A condition where price holds beyond the expansion area and treats the new structural zone as valid.
RejectionMarket State A wick or test beyond an important level that fails to close beyond it, showing insufficient confirmation.
FailureMarket State A condition where price cannot continue expansion and violates the structure required to keep the trend intact.
TransitionMarket State A confirmed shift toward the opposite direction after the market fails or reverses through opposing structure.
RSI ConfirmationIndicators Using RSI to confirm momentum after structure has already qualified, rather than using RSI as the entry trigger.
MACD DivergenceIndicators A momentum read used inside structural context to judge whether a QMS event is gaining or losing strength.
Bollinger Band ExpansionIndicators A volatility read showing range expansion after compression, useful when aligned with confirmed structure.
VWAPIndicators Volume Weighted Average Price, used as intraday context for whether price is trading above or below volume-weighted value.
Volume ProfileIndicators A study of traded volume by price, used to identify areas of acceptance, rejection, and high participation.
Top-Down AnalysisProcess The habit of reading higher timeframe bias first, then using lower timeframes for entry precision.
Bias TimeframeProcess The higher timeframe that defines the directional context before looking for execution.
Entry TimeframeProcess The lower timeframe used to refine timing after the higher timeframe has supplied context.
ECMStrategy Expansion Continuation Model: a momentum-breakout scalp entered on a single decisive close past the 127.2, stop behind the 100, targeting the next HTF reference. Continuation only.
ARMStrategy Acceptance Retest Model: a no-CHoCH trend-continuation entry at the accepted structure retest, gated by the base candle's body, with stop beyond structural invalidation and target at the next continuation reference.
EFMStrategy Expansion Failure Model: a counter-trend model that fades a failed expansion (a State 3 Rejection at the 127.2). Identified at the intermediate level; its execution is taught in the Advanced course.
PRMStrategy Purge & Revert Model: a trend-continuation model that uses purge behavior while full CHoCH requirements remain unconfirmed. Stop behind the purge wick, target the next valid continuation reference.
PRM lives in the CHoCH discipline gap: price may purge a reference or violate nearby structure, but without the inverted 127.2 close plus VSH/VSL violation, CHoCH has not confirmed. The model uses the purge wick for risk while trading with the still-valid trend.
ExpectancyRisk The average expected result of a strategy over many trades, combining win rate, average win, and average loss.
R MultipleRisk A way to measure trade outcome based on initial risk. A 2R winner made twice the amount initially risked.
DrawdownRisk The decline from an account equity peak to a later low, used to understand risk and emotional pressure.
Post-Loss ProtocolPsychology A rule-based pause after a losing trade, designed to reduce revenge trading and emotional decision-making.
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