by Henry Liverman | May 12, 2021 | Market Definitions
A chart pattern indicating a major bearish shift. A death cross occurs when a stock’s short-term moving average crosses below its long-term moving average. The death cross is also considered a long-term indicator, as the most common moving averages used to...
by Henry Liverman | May 11, 2021 | Market Definitions
A bullish trading signal where a security’s price chart shows an elongated “u” shape followed by a slight downward drift (forming a shape resembling a cup with a handle). Generally, cups with a longer “u” bottom provide a stronger signal...
by Henry Liverman | May 11, 2021 | Market Definitions
The addition of interest to the principal sum of a loan or deposit. Or, interest on your interest. This interest calculated on the initial principal also includes all of the accumulated interest from previous periods. Interest can be compounded on any schedule,...
by Henry Liverman | May 11, 2021 | Market Definitions
A shortened version of the colloquial term “don’t try to catch a falling knife.” When it comes to trading, this term translates to “wait for the price to hit a bottom before buying it.” There is no defined amount a stock must fall in...
by Henry Liverman | May 11, 2021 | Market Definitions
A tax on the profit made from selling assets (eg stocks, real estate, or other investments). The “capital gain” being taxed is the total price of the sale subtracted from the original cost of the asset. When the assets themselves have been sold, the...