13 terms
Charts & technicals
Price-and-volume analysis: what each indicator computes, and what it cannot know.
- Bear marketA fall of 20% or more from a peak; a correction is 10%, and a bull market is a sustained rise.
- Bollinger bandsBands drawn a set number of standard deviations above and below a moving average.
- Candlestick chartA chart where each period is drawn as a body between open and close, with wicks to the high and low.
- Golden cross and death crossWhen a shorter moving average crosses above or below a longer one.
- MACDAn indicator showing the gap between two exponential moving averages, with a signal line.
- MomentumThe tendency of recent winners to keep outperforming, and losers to keep underperforming, over months.
- Moving averageThe average price over a trailing window, used to smooth out day-to-day noise.
- OHLCThe four prices summarising a period: open, high, low and close.
- Relative strengthHow one security has performed compared with another or with an index.
- Relative strength indexAn oscillator from 0 to 100 measuring how one-sided recent price moves have been.
- Support and resistancePrice levels where buying or selling has repeatedly appeared in the past.
- Technical analysisStudying price and volume history to inform decisions, rather than studying the business.
- TrendA sustained directional movement in price over time.
Educational reference only. Nothing here is investment advice or a recommendation to buy or sell anything, and tax treatment depends on your own circumstances and the country you are in.