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Technical Terminology


1. Line chart

A single line that connects stock prices is called a line chart.

2. Bar charts

A chart that has open, high, low, and close data sets in a vertical line in the form of a bar. It’s also referred to as an open-high-low-close (or OHLC) chart.

3. Candlestick charts

A chart that has open, high, low, and close data sets in a candle form.

4. Support

A straight line that connects three or more of a stock’s data points. It usually indicates the stock is going down.

5. Resistance

A straight line that connects three or more of a stock’s data points. It usually indicates the stock is going up.

6. Trend

The directional movement of a stock price.

7. Uptrend

Stocks are in an uptrend when they’re making higher highs and higher lows.

8. Downtrend

Stocks are in a downtrend when they’re making lower highs and lower lows.

9. Sideways trend

Stocks that trade in a range are in a sideways trend.

10. Patterns

Price patterns are trends that occur in stock charts. The patterns form recognizable shapes.

11. Triangle pattern

The pattern is in the form of a triangle.

12. Rectangle pattern

The pattern that’s formed when stock trades sideways.

13. Head and shoulder pattern

A reversal pattern that has three consecutive peaks.

14. Double top and bottoms

Two consecutive peaks between two horizontal lines is called double top. Two consecutive bottoms between two horizontal lines is called double bottom.

15. Triple top and bottoms

Three consecutive peaks between two horizontal lines is called triple top. Three consecutive bottoms between two horizontal lines is called triple bottom.

16. Simple moving average

An average of the closing price of the stock over a specified number of periods.

17. Volume

The measure of the number stock’s shares traded on the stock exchange in a day or a period of time.

18. Relative Strength Index

The Relative Strength Index (or RSI) is a measure of the overbought and oversold position of a stock.

19. Stochastic indicator

An indicator that compares the closing price of the stock with the stock price over a given time period.

20. Moving Average Convergence Divergence

Moving Average Convergence Divergence (or MACD) is the difference between two moving averages.

21. Bollinger Bands

Bollinger Bands are a channel of moving averages over the stock prices.