A technical pattern that acts as an extension of an established upward trend. It can be identified by a strong move upwards followed by a consolidation near the top of the pole (forming the flag). The stock then breaks out of consolidation and continues on an upward...
A stock price moving outside a defined support or resistance level with increased volume. A breakout trader monitors securities that have been resistant to moving above defined price level and waits for it to move beyond its previous resistance point. Then the...
An instrument of indebtedness of the bond issuer to the bond holder, typically corporate or governmental. They’re also units of corporate debt issued by companies and securitized as tradable assets. Bond prices also have an inverse relationship with interest...
A centerline with two price channels (or “bands”) above and below it. The centerline acts as an exponential moving average, while the bands are the standard deviation of the stock in question. The bands will expand or contract as the price action becomes...
Bearish engulfing patterns are one of the most well-known candlestick patterns because they are easily identified and give a clear signal. Since candlesticks are the basic building block of most technical analysis, the ability to recognize different candlestick...
When a market shows a prolonged decline in prices. It’s generally used to describe a situation where market prices fall 20% or more from recent highs. Also marked by pessimism and negative investor forecasts.
A technical pattern that acts as an extension of an established downward trend. It’s identifiable from a strong move down followed by a consolidation in an upward direction. The strong downward trend is referred to as the “flagpole” while the...
A type of chart pattern used to identify trading opportunities. They’re created by price movements that allow for a line to be drawn from a peak (or “swing high”) along a rising trendline across the swing lows. These two lines create a triangle. ...
