Market Definitions

Playing Markets

ECB

The European Central Bank (or ECB) is the central bank for the eurozone.  Similar to the Federal Reserve of the Bank of England, the ECB sets...

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...

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...

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...

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...

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...

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...

“Falling Knives”

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...

Capital Gains Tax

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...

Blow Off Top

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). ...

Descending Wedges

The opposite of an ascending wedge pattern.  A descending wedge pattern is a bullish technical indicator.  They typically begin wide at the top and...

Black Swan

An extremely unpredictable event that produces potentially drastic effects on markets.  Black swan events are characterized by their rarity, impact,...