Glossary - P, Q, R
face value of a security.
one in which the bulk of the trading takes place outside the range of
the high and low as well as the range for several previous sessions.
Pinocchios represent exhaustion whipsaw moves and can develop in up or
pennant is a short-term counter-cyclical price pattern the trading range
for which is bounded by two converging trendlines . The lines slope in
different directions. Volume declines during the formation of the
pennant and usually expands on the breakout.
to describe the frequency, amplitude, and phase of all frequency
components of the signal.
Used to describe the frequency, amplitude, and phase of all frequency components of the signal.
charts as a series of x’s and o’s. X’s record a series of
pre-determined rising price units and 0’s declining ones. Time is
ignored in these calculations. Reversals occur after the price has
reversed by a specified amount. Point and Figure charts are interpreted
using trendline and price patterns.
commitment. A buyer of a futures contract would be in a long
position and, conversely, a seller of futures contracts would
have a short position.
ratio of the price of a stock to the earnings per share, i.e., the total
annual profit of a company divided by the number of shares outstanding.
Price Limit Order
The price specified by a customer order at which a trade can be executed.
a trend reverses direction, the price action typically traces out a
formation known as a reversal pattern. The larger and deeper the
pattern, the greater is its significance.
Patterns that are formed at market tops are called distribution
formations, i.e., the stock or market is assumed to be undergoing
distribution from strong, informed hands to weak, uninformed buyers.
Price patterns at market bottoms are known as accumulation
formations, may also represent temporary interruptions of the prevailing
trend, in which case they are called continuation patterns.
of new issues of securities.
contract to sell a specified amount of a stock or commodity at an agreed
time at the stated exercise price.
brisk rise following a decline or consolidation of the general price
level of the market.
theory that says there is no sequential correlation between prices from
one period to the next and that prices will act unpredictably as they
seek a level in response to supply and demand.
difference between the high and low price during a given period.
momentum indicator in which today's closing price is divided by the
closing price n periods ago. Multiply by 100. Subtract 100 from this
value. ((C today/Cn) * 100) - 100.
counter-cyclical short-term decline in price.
horizontal trading ranges where buyers and sellers are evenly matched.
They can be reversal or consolidation price patterns and develop in up
and down trends.
comparative relative strength
momentum indicator developed by J. Welles Wilder and used among other
things to ascertain overbought/oversold readings and divergences. The
RSI can be calculated for any time span, but 14 periods is the accepted
default. Overbought and oversold lines are generally plotted at 70 and
30 for this time span.
agreement. An agreement to sell and repurchase an asset.
concentration of supply sufficient to halt a rally.
price movement that develops in the opposite direction of the prevailing
executed stop, which acts as, a signal to reverse the current trading
position. Also known as a stop and reverse system.
variable that represents a degree of uncertainty
Changing leadership within the stock market during the course of the business cycle. Rotation is normally associated with industry groups.
Previous - Next
© 1995-2008 Pring Graphics
All rights reserved