Uptrend

What Is an Uptrend? In trading and investing, an uptrend is a period of sustained price increases.  It is characterized by a period of successive higher highs and higher lows.  The uptrend is active as long as price does not begin making lower highs and lower lows. As...

Continuation

What Is a Continuation? A continuation is a resumption of trending price action following consolidation.  In other words, it is when an uptrend or downtrend continues.  They are a fundamental aspect of price action that are present in all markets, and therefore a...

Reversal

What Is a Reversal? A reversal is a change in the direction of an ongoing trend.  This could be a shift from an uptrend to a downtrend, or vice versa.  They are a fundamental aspect of price action that are present in all markets, and therefore a crucial concept for...

Unicorn Company

A term used by many in the financial world to describe a privately-owned startup with a valuation of more than $1 billion.  The term was first used by venture capitalist Aileen Lee implying that finding one of these companies is so rare they may as well be unicorns. ...

Retracement

A minor pullback or change in the direction of a stock, index, or other financial instrument.  Retracements differ from reversals in the sense that once they are over, there should be a continuation of the previous trend.  Also, in a reversal, the price of a security...

Residual Income

Income that one continues to receive post-completion of income-producing work.  This is found in royalties, rental or real estate income, and investment accounts.  Residual income is also referred to as “passive income” for an individual or company.  For...