Earnings

The post-taxation net income.  Earnings are also referred to as profits.  They are also the most studied measurement of a company and the company’s financial statements.  The earnings reports show a company’s actual profitability, historical performance,...

Double Bottom

A very bullish technical reversal pattern.  A double bottom occurs when a stock or asset hits two consecutive lows with a slight increase between them.  Once the price rises above the high between the lows, bullish momentum is confirmed.  A double bottom is the...

Double Top

A very bearish technical reversal pattern.  A double top occurs when a stock or asset reaches a high two consecutive times with a slight decline between the highs.  Once the price falls below a support level equal to the low between the two highs, the bearish momentum...

Death Cross

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...

Cup and Handle

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...

Compound Interest

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,...