Downtrend

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

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...