This refers to a long period during which the market is in a downtrend.
Bands used to calculate the volatility of the asset class at any given time.
An increase in a stock’s price that results in the price breaking the previous high or a resistance level is
known as a breakout. This is generally accompanied with an increase in volume.
The opposite of a breakout, a breakdown refers to a security breaching its previous low or price support, or breaking down from a price pattern. This is generally accompanied with an increase in volume.
This refers to a long period during which the market is in an uptrend.
A period during which a security trades sideways.
When a stock opens outside the previous day’s trading range, a gap is created, which has technical significance.
Moving Average Convergence and Divergence, is a trend following momentum indicator.
This refers to the particular method used to study the market, e.g., fundamental and technical
These are secondary analysis tools that are derived from primary data, such as price. They are used to determine the market trend as well as overbought and oversold conditions, among others.
The average price (or volume) of a stock over a certain period is known as the moving average. This is generally plotted on the graph to smoothen out the trends. Therefore, this is basically a smoothened trend line.
The price of a security when rapidly moves down, the momentum indicator (like RSI) dips sharply. Thus
when the momentum indicator is over sold a bounce in the security is expected.
The opposite of oversold, overbought condition occurs when price rapidly moves up. The momentum
indicator (like RSI) as a result rises sharply. Such overbought levels for a momentum indicator like RSI indicate a
correction is expected for the stock.
The price at which selling would increase and intensify enough to halt the price rise, at least in the near
term, is called resistance.
RSI (Relative Strength Index):
Momentum indicator which is oscillates between 0 and 100. Generally used as an
oversold and overbought indicator.
This refers to the price at which buying would increase and intensify enough to stem the price decline, at
least in the near term. It is the opposite of resistance.
The general direction of the market/security over a given time period is known as the trend.
The line that connects two consecutive troughs or peaks and defines a trend is called a trend line.
This refers to the number of shares (or contracts of assets under consideration) traded over a certain period. Generally, the time period is a single trading session.To know more about us or our services, kindly visit www.aceinvestmentadvisory.comAce Investment Advisory
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