Technical Analysis & Chart Patterns
8 terms
Technical Analysis
Technical Analysis & Chart Patterns
qualitative
The study of past price and volume data in order to describe market behaviour and frame trading decisions.
Test: the conclusion is drawn from price, volume and derived series alone, without reference to the issuer's financial statements
Three Black Crows
Technical Analysis & Chart Patterns
qualitative
Three consecutive falling candles with substantial bodies, each opening within the previous body and closing near its own low.
Test: three consecutive candles with Close < Open, each Open inside the previous body, each Close near its own Low
Three White Soldiers
Technical Analysis & Chart Patterns
qualitative
Three consecutive rising candles with substantial bodies, each opening within the previous body and closing near its own high.
Test: three consecutive candles with Close > Open, each Open inside the previous body, each Close near its own High
Trend
Technical Analysis & Chart Patterns
qualitative
A sustained directional tendency in price, described as up, down or sideways over a stated timeframe.
Uptrend: successively higher highs and higher lows; Downtrend: successively lower highs and lower lows
Trend Following
Technical Analysis & Chart Patterns
qualitative
A rules-based approach that enters in the direction of an established price move and exits when that move ends.
Test: entry and exit are determined by a stated trend rule, with no forecast of turning points and no valuation input
Trendline
Technical Analysis & Chart Patterns
qualitative
A straight line drawn to connect successive swing lows in a rise or successive swing highs in a fall.
Test: the line touches at least two swing points and is confirmed by a third touch without being violated between them
Triple Bottom
Technical Analysis & Chart Patterns
qualitative
Three troughs at approximately the same price level separated by two peaks.
Test: three lows within a small percentage of each other, with the highest intervening peak acting as the completion level
Triple Top
Technical Analysis & Chart Patterns
qualitative
Three peaks at approximately the same price level separated by two troughs.
Test: three highs within a small percentage of each other, with the lowest intervening trough acting as the completion level