by Henry Liverman | May 7, 2021 | Market Definitions
A horizontal trading pattern created by drawing trendlines on a price chart along a converging price range. Characterized as continuation patterns, triangles are used in technical analysis to determine the direction of a trend. Triangles are made up of ascending,...
by Henry Liverman | May 7, 2021 | Market Definitions
Mathematical calculations plotted and tracked on a price chart that can help traders identify signals and trends within the market. There are 4 main types of indicators: trend (eg MACD), momentum (eg RSI), volatility, and volume. Many other types of indicators have...
by Henry Liverman | May 7, 2021 | Market Definitions
An indicator that identifies a turning point in the price trend and indicates a price pause, pullback, or reversal is likely. In essence, if a chart shows nine consecutive candles above or below the closure of 4 prior candles, it indicates a TD9 sell signal. The...
by Henry Liverman | May 7, 2021 | Market Definitions
Generally considered to be a foreign country that offers foreign individuals very low “effective” taxation rates. While there is no set definition of a tax haven country, some common characteristics are low to no income taxes, minimal financial reporting,...
by Henry Liverman | May 6, 2021 | Market Definitions
A trading strategy based around attempting to force other traders out of their stop positions. The stop hunter attempts to trigger the stop loss orders of other traders to trigger a temporary period of high volatility in the market in order to profit. Stop hunting...
by Henry Liverman | May 6, 2021 | Market Definitions
All the shares of a corporation into which ownership is divided. Meaning that a stock represents fractional ownership of a corporation. Also known as equity, they make up the foundation of many investor’s portfolios. They are most prominently sold on stock...
by Henry Liverman | May 6, 2021 | Market Definitions
An oscillating momentum indicator that makes use of support and resistance levels. It is bound within a range of 0 to 100 and used to track the momentum of a price (as opposed to the actual price itself). A stochastic oscillator compares a particular closing price...
by Henry Liverman | May 5, 2021 | Market Definitions
A combination of stochastic and the Relative Strength Index. Essentially, a Stochastic RSI is a Stochastic indicator applied to the RSI indicator. It was developed to take advantage of both momentum indicators. By using RSI values with a Stochastic formula, traders...
by Henry Liverman | May 5, 2021 | Market Definitions
A short position is created when a trader sells an asset or security with the intention of repurchasing it later. A trader may take a short position on a security if they believe that the price of that security is likely to decrease substantially in the near future. ...
by Henry Liverman | May 5, 2021 | Market Definitions
A prolonged period of above-average returns where drawdowns are relatively shallow and recoveries from pullbacks are relatively rapid. This is in contrast to a Secular Bear Market, or a prolonged period of below-average total returns where drawdowns are severe and...