Technical Analysis & Chart Patterns
5 terms
Candlestick
Technical Analysis & Chart Patterns
qualitative
A chart element showing a period's open, high, low and close as a body between open and close with wicks to the extremes.
Body = distance between Open and Close; Upper Wick = High - max(Open, Close); Lower Wick = min(Open, Close) - Low
Channel
Technical Analysis & Chart Patterns
qualitative
A pair of parallel trendlines enclosing price movement, one along the swing highs and one along the swing lows.
Test: an upper and a lower line of equal slope contain the price series over the period examined
Chart Timeframe
Technical Analysis & Chart Patterns
qualitative
The period each bar or candle on a chart represents, from one minute to one month.
Test: the timeframe states the duration aggregated into a single plotted period
Consolidation
Technical Analysis & Chart Patterns
qualitative
A period in which price moves within a bounded range without establishing a directional sequence.
Test: successive highs and lows fall within a defined band, with neither the higher-high nor lower-low condition satisfied
Cup and Handle
Technical Analysis & Chart Patterns
qualitative
A rounded base followed by a smaller, shallower pullback near the prior high, resembling a cup with a handle.
Test: a rounded recovery to near the prior high, then a shallow consolidation typically retracing less than a third of the cup's depth