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76 Cards in this Set
- Front
- Back
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TREND
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The general direction of a market or of the price of an asset.
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UPTREND
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Describes the price movement of a financial asset when the overall direction is upward.
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DOWNTREND
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Describes the price movement of a financial asset when the overall direction is downward
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SIDEWAYS
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Describes the horizontal price movement that occurs when the forces of supply and demand are nearly equal.
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FLAT TREND
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A series of steady actual values.
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TREND LINES
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a line on a graph indicating a statistical trend.
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PARTIAL
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FREQUENTLY COMPETES WITH PURELY SPECULATIVE FACTORS, WHICH INFLUENCE PRICE IN THE OPPOSITE DIRECTION
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INDIRECT
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ACTS THROUGH THE INTERMEDIARY OF PEOPLE'S SENTIMENTS AND DECISIONS
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DRAWDOWNS
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The peak-to-trough decline during a specific record period of an investment, fund or commodity
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BID
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An offer made by an investor, a trader or a dealer to buy a security.
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ASK
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The price a seller is willing to accept for a security, also known as the offer price.
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BID-ASK SPREAD
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The amount by which the ask price exceeds the bid.
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CIRCUIT BREAKERS
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Refers to any of the measures used by stock exchanges during large sell-offs to avert panic selling.
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DERIVATIVE
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A security whose price is dependent upon or derived from one or more underlying assets.
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UNDERLYING
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In derivatives, the security that must be delivered when a derivative contract, such as a put or call option, is exercised.
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COUNTERPARTY RISK
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The risk to each party of a contract that the counterparty will not live up to its contractual obligations.
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GOOD FAITH DEPOSIT
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A minimum standard that requires both the buyer and seller in a transaction to act honestly toward each other and to not mislead or withhold critical information from one another.
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NOISE
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Price and volume fluctuations in the market that can confuse one's interpretation of market direction.
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NOISE PLAYERS
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UNINFORMED MARKET PARTICIPANTS
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LIQUIDITY PLAYERS
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MARKET PARTICIPANTS WHO AFFECT PRICES IN THE MARKETS FOR OTHER REASONS THAN INVESTMENT OR TRADING
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FLOAT
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The total number of shares publicly owned and available for trading.
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UNWEIGHTED INDEX
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Equal weight is invested in each of the stocks in an index with equal dollar amounts invested in each underlying stock.
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CONFIRMATION
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The occurrence of two or more indicators corresponding with one another and thereby corroborating the predicted trend.
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RANGE
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THE DIFFERENCE BETWEEN THE LOW AND HIGH PRICE IN ANY BAR
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SHADOWS
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A small line found on a candle in a candlestick chart that is used to indicate where the price of a stock has fluctuated relative to the opening and closing prices.
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TRADING RANGE
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The spread between the high and low prices traded during a period of time.
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NEUTRAL
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A term that describes an option on a security or market that is neither bullish nor bearish.
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TRENDING
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THE WAY IN WHICH PRICES TREND
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SUPPORT
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The price level which, historically, a stock has had difficulty falling below.
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RESISTANCE
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The price at which a stock or market can trade, but not exceed, for a certain period of time.
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CONSOLIDATION
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The movement of an asset's price within a well-defined pattern or barrier of trading levels.
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CONGESTION AREA
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The movement of an asset's price within a well-defined pattern or barrier of trading levels.
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RECTANGLE FORMATION
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The movement of an asset's price within a well-defined pattern or barrier of trading levels.
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LINE FORMATION
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SMALL LATERAL PATTERNS
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RESISTANCE POINT
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The price at which a stock or market can trade, but not exceed, for a certain period of time.
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RESISTANCE ZONE
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WHEN MORE THAN ONE RESISTANCE LEVEL OCCURS AT ROUGHLY THE SAME PRICE
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SUPPORT POINT
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The price at which a stock or market can trade, but not FALL BELOW, for a certain period of time.
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ZONE
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AN AREA CONSTRUCTED BETWEEN THE HIGHEST AND LOWEST HORIZONTAL LINE
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CHANNEL
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A TRADING RANGE TIPPED AT AN ANGLE SUCH THAT IT TRENDS UPWARD OR DOWNWARD
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LINEAR REGRESSION
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y = ax + b
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REGRESSION LINE
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a smooth curve fitted to the set of paired data in regression analysis; for linear regression the curve is a straight line.
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FAN LINE
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THE OPPOSITE OF AN ACCELERATING TREND LINE, AKA A DESCENDING TREND LINE
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INTERNAL TREND LINE
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A LINE DRAWN THROUGH TRENDING PRICE ACTION SUCH THAT A LARGE NUMBER OF MINOR REVERSALS TOUGH THE LINE BOTH FROM ABOVE AND BELOW
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RETRACEMENTS
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A temporary reversal in the direction of a stock's price that goes against the prevailing trend.
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PULLBACKS
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A falling back of a price from its peak.
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THROWBACKS
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A price move back toward the entry level of a security that has broken beyond the barrier of a price pattern or trendline.
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BULLISH SUPPORT LINES
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UPWARD TREND LINES
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BEARISH RESISTANCE LINES
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DOWNWARD TREND LINES
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SPEED LINES
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This tool, consisting of three trendlines, is created by drawing the first trendline from the most recent low to the most recent high when the asset is in an uptrend, and from the most recent high to the most recent low when the asset is in a downtrend. The other two trendlines are drawn with smaller angles in an attempt to predict areas that will act as possible barriers in the event of a retracement.
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PIVOT POINTS
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A technical indicator derived by calculating the numerical average of a particular stock's high, low and closing prices.
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PROTECTIVE STOPS
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A strategy that aims to limit potential losses to a desired amount by using a stop-loss or stop-limit order.
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TRAILING STOPS
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A stop-loss order set at a percentage level below the market price - for a long position.
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ARITHMETIC MOVING AVERAGE
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Calculated by adding the closing price of the security for a number of time periods and then dividing this total by the number of time periods.
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EXPONENTIAL MOVING AVERAGE
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A type of moving average that is similar to a simple moving average, except that more weight is given to the latest data.
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ADX LINE
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An indicator used in technical analysis as an objective value for the strength of trend.
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BANDWIDTH INDICATOR
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THE LINE OF WHICH THE DIFFERENCE BETWEEN THE HIGH BAND AND LOW BAND IS PLOTTED
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CHANNEL
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The technical range between support and resistance levels that a stock price has traded in for a specific period of time.
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PATTERN
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In technical analysis, the distinctive formation created by the movement of security prices on a chart.
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FORMATION
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In technical analysis, the distinctive formation created by the movement of security prices on a chart.
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APEX
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THE POINT AT WHICH TWO LINES EXTEND AND CROSS OVER EACH OTHER
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CRADLE
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THE POINT AT WHICH TWO LINES EXTEND AND CROSS OVER EACH OTHER
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BASE
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THE DISTANCE BETWEEN THE FIRST HIGH REVERSAL POINT AND THE FIRST LOW REVERSAL POINT WITHIN A TRIANGLE
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DESCENDING TRIANGLE
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A bearish chart pattern used in technical analysis that is created by drawing one trendline that connects a series of lower highs and a second trendline that has historically proven to be a strong level of support.
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ASCENDING TRIANGLE
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A bullish chart pattern used in technical analysis that is easily recognizable by the distinct shape created by two trendlines.
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SYMMETRICAL TRIANGLE
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A chart pattern used in technical analysis that is easily recognized by the distinct shape created by two converging trendlines.
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WEDGE
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A technical chart pattern composed of two converging lines connecting a series of peaks and troughs.
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BROADENING PATTERN
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WHEN TWO LINES ARE DIVERGING REGARDLESS OF SLOPE
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DIAMOND PATTERN
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THE COMBINATION OF A BROADENING PATTERN WITH A TRIANGLE
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SYMMETRICAL
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TWO LINES WHICH HAVE THE SAME ANGLE BUT IN DIFFERENT DIRECTIONS
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COIL
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TWO LINES WHICH HAVE THE SAME ANGLE BUT IN DIFFERENT DIRECTIONS
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MEGAPHONE
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EXISTS WHEN ONE TAKES THE STANDARD RECTANGLE PATTERN AND DRAW LINES DIVERGING FROM EACH OTHER INTO THE FUTURE RATHER THAN CONVERGING AS IN A STANDARD TRIANGLE
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FUNNEL
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EXISTS WHEN ONE TAKES THE STANDARD RECTANGLE PATTERN AND DRAW LINES DIVERGING FROM EACH OTHER INTO THE FUTURE RATHER THAN CONVERGING AS IN A STANDARD TRIANGLE
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REVERSE TRIANGLE
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EXISTS WHEN ONE TAKES THE STANDARD RECTANGLE PATTERN AND DRAW LINES DIVERGING FROM EACH OTHER INTO THE FUTURE RATHER THAN CONVERGING AS IN A STANDARD TRIANGLE
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INVERTED TRIANGLE
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EXISTS WHEN ONE TAKES THE STANDARD RECTANGLE PATTERN AND DRAW LINES DIVERGING FROM EACH OTHER INTO THE FUTURE RATHER THAN CONVERGING AS IN A STANDARD TRIANGLE
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RISING WEDGE
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IF A LATER RALLY WITHIN THE CHANNEL FAILS TO REACH THE CHANNEL LINE, THE NEW CHANNEL LINE THROUGH THE NEW DOWNWARD REVERSAL AND THE LAST DOWNWARD REVERSAL WILL HAVE A LESSER SLOPE THAN THE UNDERLYING TREND LINE, AND IF PROJECTED INTO THE FUTURE, IT WILL EVENTUALLY MEET THE TREND LINE
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PERCENTAGE ENVELOPE
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REDUCES THE NUMEROUS UNPROFITABLE SIGNALS FROM CROSSING A MOVING AVERAGE WHEN THE TREND IS SIDEWAYS
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