Technical Analysis & Chart Patterns — 65 Terms Defined

Resistance Technical Analysis & Chart Patterns ₹ A price level at which selling has previously been sufficient to halt an advance. Test: price has reversed downward from approximately this level on at least two prior occasions

Retest Technical Analysis & Chart Patterns qualitative A return of price to a level it has recently broken through, to see whether that level now holds from the other side. Test: price returns to within a small band of the broken level after the initial breach

Rising Wedge Technical Analysis & Chart Patterns qualitative A formation in which both boundaries slope upward but converge, with the lower boundary rising more steeply than the upper. Test: higher highs and higher lows, with the line through the lows rising faster than the line through the highs

Rounding Bottom Technical Analysis & Chart Patterns qualitative A gradual, curved transition from decline to advance over an extended period, with no sharp low. Test: successive lows form a shallow concave curve over many periods, with volume typically contracting into the base and expanding on the advance

Shooting Star Technical Analysis & Chart Patterns qualitative A candlestick with a small body near the bottom of its range and a long upper wick, appearing after an advance. Test: Upper Wick is at least twice the Body, Lower Wick is minimal, and the candle follows an advance

Spinning Top Technical Analysis & Chart Patterns qualitative A candlestick with a small body and long wicks on both sides, indicating a wide range that closed near the open. Test: Body is a small fraction of the range, with both Upper and Wick Lower substantial and roughly comparable

Support Technical Analysis & Chart Patterns ₹ A price level at which buying has previously been sufficient to halt a decline. Test: price has reversed upward from approximately this level on at least two prior occasions

Symmetrical Triangle Technical Analysis & Chart Patterns qualitative A formation with a falling upper boundary and a rising lower boundary converging at similar angles. Test: successively lower highs and successively higher lows converging toward an apex

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

Uptrend Technical Analysis & Chart Patterns qualitative A price sequence in which each significant high exceeds the previous high and each significant low exceeds the previous low. Test: current swing high > previous swing high, and current swing low > previous swing low