Technical Analysis & Chart Patterns

A formation in which both boundaries slope downward but converge, with the upper boundary falling more steeply than the lower.

Test: lower highs and lower lows, with the line through the highs falling faster than the line through the lows qualitative

A move beyond a defined level that reverses back into the prior range shortly afterwards.

Test: price breaches the level and then closes back inside the range within a stated number of periods qualitative

Technical Analysis & Chart Patterns

Levels projected beyond a prior move at set multiples of its size, used to mark possible areas where an advance may pause.

Extension Level = Retracement Low + (High - Low) x Ratio, where common ratios are 127.2%, 161.8%, 200% and 261.8% %

Technical Analysis & Chart Patterns

Horizontal levels drawn at set percentages of a prior price move, used to mark potential areas where a pullback may pause.

Retracement Level = High - (High - Low) x Ratio, where common ratios are 23.6%, 38.2%, 50%, 61.8% and 78.6% %

Technical Analysis & Chart Patterns

A short, shallow consolidation in a small parallel channel that slopes against the direction of a sharp preceding move.

Test: a steep prior move, followed by a brief parallel-sided consolidation retracing only a small portion of it qualitative