Skip to main content

Research Terminology

Plain-English definitions of terms used in withSahib research notes.

Entry Zone

The price range within which a position can be initiated. Not a single price — a zone that accounts for execution variance.

Stop Loss (SL)

The price at which a trade is closed to limit losses. Defined before entry. Non-negotiable once set.

Target 1 / T1

The first profit-taking level. Conservative — typically 40–50% of the expected move.

Target 2 / T2

The extended profit target. For positions that develop strongly.

R:R (Risk-to-Reward)

Ratio of potential loss to potential gain. A 1:2 R:R means risking ₹1 to make ₹2. Minimum 1:2 on all withSahib recommendations.

Open Interest (OI)

Total number of outstanding derivative contracts. Rising OI with rising price = bullish confirmation.

PCR (Put-Call Ratio)

Ratio of put open interest to call open interest. Above 1.0 = more puts = bearish sentiment.

IV Rank

Implied Volatility Rank. Measures current IV vs. 52-week range. High IV rank = expensive options.

EMA

Exponential Moving Average. Gives more weight to recent prices. 20 EMA used for short-term, 50 EMA for medium-term trend.

Support

A price level where buying interest is expected to emerge. A floor.

Resistance

A price level where selling pressure is expected. A ceiling.

Breakout

When price moves above resistance on high volume. Confirms strength.

Expiry Day

The day F&O contracts expire (weekly for index options, monthly for stock options).

FII / DII

Foreign / Domestic Institutional Investors. Their net buying/selling is tracked for market direction.

Wyckoff Accumulation

A price pattern indicating institutional buying before a markup phase.

Terms and definitions are used consistently across all withSahib research reports published under SEBI RA registration INH000026266. If a term in a report is unclear, email connect@withsahib.com

Book a 1-on-1 session with Sahib

30-minute strategy call — limited slots — SEBI Registered Analyst

Book Now →