Glossary - T
art of identifying a trend reversal at a relatively early stage and
riding on that trend until the weight of the evidence proves that the
trend has reversed.
shows the change in an option's price (in points) due to the effect of
time alone. The longer the
time until expiration, the less effect that time has on the option’s
price. As it nears
expiration, the effect can be great, particularly on out-of-the-money
options. Theta is also
referred to as "time decay."
minimum fluctuation of a tradable security.
the number of stocks traded on a specific exchange whose last trade was
an uptick or a downtick.
order that designates the time during which it can be executed.
difference between a nation's exports and imports of merchandise.
period in which prices fluctuate within specific price levels.
A trading range reflects an overall balance between buyers and
stop-loss order that is continually changed to follow the prevailing
tendency of a set of statistical data as related to time to move in a
specific overall direction.
up sloping or down sloping trading range where it is possible to
construct two parallel trendlines, one joining a series of peaks, the
other a series of troughs.
line drawn that connects a series of highs in a downtrend or a series of
lows in an uptrend. Up trendlines represent support and down trendlines
resistance. Trendline penetrations either result in consolidation moves
or an actual reversal in trend. Their significance is determined by
their length, the number of times they have been touched or approached
and the steepness of the angle of ascent or descent.
moving average in which each day's data is multiplied by a weight that
increases in value at steady increments to a peak value and then
declines to zero at equivalent increments. The sum of the weighted daily
data is divided by the number of variables.
are formed when the price breaks out from a trading range that is
confined by two converging trendlines. When one line is ascending and
the other descending the pattern is known as a “symmetrical
triangle’. When one of the lines is at right angles to the vertical
axis it is known as a “right angled triangle”. Ascending
right-angled triangles develop in uptrends and descending right-angled
triangles develop in downtrends.
known as the ARMS index: It is an oscillator of market breadth indicator
that also uses volume in its construction. It moves inversely with the
market, which means that a low number
i.e. between 30-50 is bullish and a high one, in excess of 150 is
bearish.. The index is often smoothed with a simple moving average.
largest of the following: Today's high minus today's low, today's high
minus yesterday's close, today's low minus yesterday's close.
Day (bar) Reversal
patterns develop after a persistent trend. The first opens on the low
(high in a downtrend) and closes on the high(low in a downtrend). The
second opens at the same level as the previous sessions close and then
closes at or close to the previous session’s low (high in a downtrend)
Bottoms and Tops
A two period candlestick formation where both candles have identical highs and lows.
Previous - Next
© 1995-2008 Pring Graphics
All rights reserved