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...
by Henry Liverman | May 11, 2021 | Market Definitions
A trading pattern showing showing a rapid and substantial rise in price and volume preceding a rapid drop in price (ie, it produces a Λ shape). These patterns appear in all markets and is a very volatile trading pattern. It must be approached smartly, as a poorly...
by Henry Liverman | May 10, 2021 | Market Definitions
The opposite of an ascending wedge pattern. A descending wedge pattern is a bullish technical indicator. They typically begin wide at the top and constrict as prices continue to lower. This action forms a triangle shape as the reaction highs and lows converge. ...
by Henry Liverman | May 10, 2021 | Market Definitions
An extremely unpredictable event that produces potentially drastic effects on markets. Black swan events are characterized by their rarity, impact, and general belief “we should have seen it coming.” Examples of a black swan event are 9/11, the 2008...
by Henry Liverman | May 10, 2021 | Market Definitions
A bearish technical indicator created by price moves that show a horizontal line across swing highs and a rising line across the swing lows. These two lines create an rising triangle pattern. They typically begin wide at the bottom and constrict as the prices rise...
