Glossary

The practice of buying and selling securities during a period of time when the major markets are officially closed. Once reserved for institutional investors, individual investors may now participate. Stocks are traded after hours on ECNs, which match buyers and seller with a computer system in order to execute trades.

An option which can be exercised at any time between the purchase date and the expiration date. Most options in the U.S. are of this type. This is the opposite of a European-style option, which can only be exercised on the date of expiration. Since an American-style option provides an investor with a greater degree of flexibility than a European style option, the premium for an American style option is at least equal to or higher than the premium for a European-style option which otherwise has all the same features. also called American option.

American Stock Exchange. The second-largest stock exchange in the U.S., after the New York Stock Exchange (NYSE). In general, the listing rules are a little more lenient than those of the NYSE, and thus the AMEX has a larger representation of stocks and bonds issued by smaller companies than the NYSE.

The price a seller is willing to accept for a security, also known as the offer price. Along with the price, the ask quote will generally also stipulate the amount of the security willing to be sold at that price.

A condition in which the strike price of an option is equal to (or nearly equal to) the market price of the underlying security.

A method of displaying the open, high, low and close prices for a financial instrument for a specific period.

Bar charts use single, vertical bars to illustrate a stock's price range and opening/closing prices for a designated time period. The bars may illustrate daily, weekly, or monthly periods. For example on a weekly chart, each bar represents one week and on a daily chart, each bar represents one day.

The top of the bar indicates the stock's highest price of the period. The bottom of the bar represents the stock's lowest price for that period. The small perpendicular bar on the left designates the stock's opening price. The one on the right shows the stock's closing price.

An investor who believes that a particular security or market is headed downward. Bears attempt to profit from a decline in prices. Bears are generally pessimistic about the state of a given market.

Bearish refers to falling stock prices.

An offer made by an investor, a trader or a dealer to buy a security. The bid will stipulate both the price at which the buyer is willing to purchase the security and the quantity to be purchased.

The amount by which the ask price exceeds the bid. This is essentially the difference in price between the highest price that a buyer is willing to pay for an asset and the lowest price for which a seller is willing to sell it.

A term for a rise in a security's price above a resistance level (usually its previous high) or a drop below a support level (usually its previous low).

The price threshold, defined by the pattern, that a stock's price must cross in order to confirm that the pattern has formed.

A person that buys or sells an investment vehicle for you (securities, bonds, commodities, etc.,) in exchange for a fee which is called a commission.

An option contract giving the owner the right (but not the obligation) to buy a specified amount of an underlying security at a specified price within a specified time. A call becomes more valuable as the price of the underlying asset (stock) appreciates.

A charting method used to display open, high, low and close prices for a security, Candlesticks were invented by a 17th century Japanese rice broker, Munehisa Homma, who was one of the first Japanese traders to use price history to predict future prices. His trading theories and principles evolved into the candlestick charting techniques used today.

A candlestick uses the top and bottom of its bar to indicate high and low prices of the time frame indicated. The bar is referred to as a "real body" and connects the opening and closing prices. The real body shows the opening and closing prices with a clear, or a dark, rectangle. When the rectangle or real body is clear, it means that the stock closed above its opening price. When the real body is dark, it means that the stock closed below its opening price. The bars that extends above and below the real body are called the upper shadow and lower shadow respectively. Candlestick patterns can be used alone, but are extremely powerful when used in conjunction with other charting indicators.

Chart Type describes the format of the chart to be presented. A chart is a graphical method of showing where stock prices have been over specific time frames and is used by stock market analysts. A chart has an x-axis (horizontal) and a y-axis (vertical). Typically, the x-axis represents time and the y-axis represents price. There are many different types of charts that can be used to display stock prices. Two such types are a Bar Chart or a Candlestick Chart.

Classic is a term used to refer to a group of patterns that typically have a longer-term horizon (greater than 12 days) and which have distinct price swings such that the price swings form distinctive patterns. The names of classic patterns often reflect the shape of the formation such as the Double Top, Double Bottom, Head and Shoulders Top, Ascending Triangle and so on.

The price of the financial instrument at the close of trading on the day that the event was detected. The close price is set as the last trading price before the exchange or market on which it is traded closes for the day. With after-hours trading, however, the opening price at the start of the next trading day may be different from the closing price the day before.

A basic good used in commerce that is interchangeable with other commodities of the same type. Commodities are most often used as inputs in the production of other goods or services. The quality of a given commodity may differ slightly, but it is essentially uniform across producers. When they are traded on an exchange, commodities must also meet specified minimum standards, also known as a basis grade.

Confirmation or validation that an event has occurred. Events are first recognized and deemed to have occurred based on the definition of the event type. The date on which an event is "found" is referred to as the "event date". Each event type must pass additional criteria to be considered "confirmed". This provides additional assurance that the event is valid.

The date on which the event meets this additional confirmation criteria is referred to as the "confirmation date". Many events are "confirmed" on the same date that they are "found". In this case, the "event date" is the same as the "confirmation date". However some events are "found" on one date, and then "confirmed" at a later date.

The date on which it was confirmed that an event had occurred.

The confirmation type indicates how the event was confirmed to have occurred. Classic Patterns are found or recognized based on the price movements creating a specific formation. The pattern is finally confirmed when the price of the stock breaks through the "breakout price" of the instrument. The breakout price is a price threshold determined by the definition of the pattern type. Valid confirmation types for Classic Pattern events are:

* Confirmed because the Close Price penetrated Breakout Price
* Confirmed because the Price penetrated Breakout Price by 3%
* Confirmed because the Price penetrated Breakout Price by any amount

Price Crosses Moving Average, an indicator, is recognized when the price of the instrument crosses the moving average. However it is not confirmed until the moving average turns in the direction of the anticipated price move, within a specific time period. If the appropriate turn does not occur within the specific time period, the event is considered "not confirmed". Therefore valid confirmation types for Price Crosses Moving Average Indicator events are:

* Undecided. This means that the price crossed the moving average, and confirmation is being watched for.
* Not Confirmed. This means that the price crossed the moving average, however the event has not been confirmed, and confirmation is no longer being watched for.
* Confirmed. This means that the price crossed the moving average, and the event was confirmed by the moving average taking a turn in the
direction of the anticipated price move.

Event types not mentioned here are always considered confirmed. They are not considered found unless they pass the additional confirmation criteria as well. Therefore the event date is the same as the confirmation date.

The risk that a country will not be able to honor its financial commitments.

A contractual agreement in which a borrower receives something of value now, with the agreement to repay the lender at some date in the future. Also, the borrowing capacity of an individual or company.

Any form of money that is in public circulation. Currencies are represented as the amount of that currency required to equal one US dollar.

A debenture is an instrument indicating the indebtedness of a company. It is not secured by assets or property, but only the credit of the issuer. Investors should also consider examining Technical Analysis for the underlying stock when researching convertible debentures. Technical Analysis may be considered less indicative for non-convertible debentures. Technical Analysis should be used as one piece of additional information within additional research regarding these instruments.

A situation in which the price of an asset and an indicator, index or other related asset move in opposite directions. In technical analysis traders make transaction decisions by identifying situations of divergence, where the price of a stock and a set of relevant indicators, such as the money flow index (MFI), are moving in opposite directions.

A Doji Line is a type of candlestick line which depicts a situation in which the open and close prices are the same (or almost the same). Different varieties of doji lines (such as a gravestone or long-legged doji) depend on where the open and close are in relation to the entire range. Doji lines are among the most important individual candlestick lines as many times they predict a shift in, or even a reversal of a current trend. Doji lines often predict a shift in, or a reversal of a current trend.

Technical Analysis are divided into four event classes based on their common features: Classic Patterns, Short-term Patterns, Indicators and Oscillators

The date on which the Technical Analysis occurred.

The risk due to unforeseen events partaken by or associated with a company. The risk associated with a changing portfolio value due to large swings in market prices. Also referred to as "jump risk" or "fat-tails".

Event Type describes the specific type of event. Examples of Event Types are: Head and Shoulders Bottom, Bearish Engulfing Line, Double Top, Price Crosses Moving Average and Momentum.

The market that performs and tracks the actual trades in equities and other financial instruments. Major exchanges include the New York Stock Exchange (NYSE) and the NASDAQ.

A security that tracks an index, a commodity or a basket of assets like an index fund, but trades like a stock on an exchange, thus experiencing price changes throughout the day as it is bought and sold. Because it trades like a stock whose price fluctuates daily, an ETF does not have its net asset value (NAV) calculated every day like a mutual fund does.
By owning an ETF, you get the diversification of an index fund as well as the ability to sell short, buy on margin and purchase as little as one share. Another advantage is that the expense ratios for most ETFs are lower than those of the average mutual fund. When buying and selling ETFs, you have to pay the same commission to your broker that you'd pay on any regular order. One of the most widely known ETFs is called the SPDR (Spider), which tracks the S&P 500 index and trades under the symbol SPY.

This is a rating applied to each Classic Pattern that represents how a professional Technical Analyst might assess this pattern. The rating ranges from 0 to 100 with 100 representing a "perfect" example of this pattern type.

The foreign exchange (also known as "forex" or "FX") market is the place where currencies are traded. The overall forex market is the largest, most liquid market in the world with an average traded value that exceeds $1.9 trillion per day and includes all of the currencies in the world.

A method of evaluating a security by attempting to measure its intrinsic value by examining related economic, financial and other qualitative and quantitative factors. Fundamental analysts attempt to study everything that can affect the security's value, including macroeconomic factors (like the overall economy and industry conditions) and individually specific factors (like the financial condition and management of companies).

A break between prices on a chart that occurs when the price of a stock makes a sharp move up or down with no trading occurring in between. Gaps can be created by factors such as regular buying or selling pressure, earnings announcements, a change in an analyst's outlook or any other type of news release.

The monetary value of all the finished goods and services produced within a country's borders in a specific time period, though GDP is usually calculated on an annual basis. It includes all of private and public consumption, government outlays, investments and exports less imports that occur within a defined territory.

Making an investment to reduce the risk of adverse price movements in an asset. Normally, a hedge consists of taking an offsetting position in a related security, such as a futures contract.

The price trend leading into an event. The Inbound Trend is important in two ways:

1. The height of the Inbound Trend is an indication of the possible price move away from the breakout price of the event
2. The slope of the Inbound Trend provides an indication of the strength of an event.

A very strongly sloped Inbound Trend (large height, short duration) is a stronger indicator of a reversal than a shallow Inbound Trend (small height, large duration).

The length, in days, of the trend leading into the event.

An index is a grouping of stocks used by the financial markets as a benchmark of performance. Examples of indices follow.

* The Dow Jones Industrial Average(DJIA): A price-weighted index of thirty giants of American Industry. Price-weighted means that higher-priced stocks receive more weighting than lower-priced ones. Examples of stocks in the DJIA are IBM, General Motors, and Microsoft.
* The New York Stock Exchange Composite Index: A price-weighted index made up of all NYSE stocks.
* Standard & Poors 500 Index: A market capitalization weighted index (shares outstanding multiplied by stock price per share).
* The Nasdaq Composite Index: A statistical measure that indicates changes in the Nasdaq Stock Market by measuring all Nasdaq common stocks. It is price-weighted.

While one cannot directly trade indices, there is value in reviewing Technical Analysis for indices. For example, if there is a bearish event for a technology-based index, an investor might want to rebalance his/her portfolio to protect against bearish price movements in technology-based stocks. Or if a strong bullish pattern appears in a pharmaceutical company, but a pharma-based index shows a bearish event, then an investor may think again about taking a position in the pharmaceutical company since the industry is moving in the opposite direction.

This is a Technical Analysis category. Some Technical Analysis are based on indicators.

A basic category of business activity. While businesses in the same industry achieve their own unique financial goals, they generally experience the same overall market trends that other businesses within the same industry experience. For example, while Sears and WalMart compete, they are both also hurt by a slow down in consumer spending.

Examples of financial instruments include: stock, index, mutual fund, currency.

The identification used by the exchange for a financial instrument. The symbol is usually a short alphabetic representation of the company name. e.g. MSFT for Microsoft.

The symbol may also include a punctuation mark to identify the type of instrument the symbol represents, such as Security (Preferred Stock, Warrant, Debenture, Right, US Funds, Trust Unit, Index, Mutual Fund or Currency). Symbols are not unique across exchanges. For example the same three letter symbol may be used for two different stocks on the New York Stock Exchange and the Toronto Stock Exchange.

The type of financial instrument. Security and Index are currently available for technical analysis.

A component of the Employment Situation Summary, reported monthly by the Bureau of Labor Statistics. The job growth figure is expressed as the gross number of jobs created in the American economy in the previous month.

A chart that shows a line representing the close price.

The risk stemming from the lack of marketability of an investment that cannot be bought or sold quickly enough to prevent or minimize a loss.

Long refers to a bullish trading situation with the following implications:

* If you already have a short position you may consider closing it out.
* If you already have a long position you may consider holding or accumulating.
* If you don't have a position you may consider taking a long position.

A trend-following momentum indicator that shows the relationship between two moving averages of prices. The MACD is calculated by subtracting the 26-day exponential moving average (EMA) from the 12-day EMA. A nine-day EMA of the MACD, called the "signal line", is then plotted on top of the MACD, functioning as a trigger for buy and sell signals.

A large buy or sell early in the trading day of a market in an attempt to affect the price of the security during the day.

A Mutual Fund is a professionally managed investment that pools the capital of thousands of investors to trade in stocks, bonds, options, futures, currencies, or money market securities. Funds have different objectives. They may vary from very aggressive and volatile, to those that only buy blue chip stocks.

Mutual Funds hold a large number of securities and therefore offer investors the opportunity to diversify, as well as the benefits of portfolio management.

A large buy or sell before the close of a market in an attempt to affect the close price of the security.

A rating that represents the "noise" present in the pattern. Pattern Noise represents the price fluctuation as a result of price moves expected by the pattern and its structure. Most experts believe that too much noise will reduce the significance of a pattern.

A financial derivative which represents a contract sold by one party (option writer) to another party (option holder). The contract offers the buyer the right, but not the obligation, to buy (call) or sell (put) a security or other financial asset at an agreed-upon price (the strike price) during a certain period of time or on a specific date (exercise date).

* Options are extremely versatile securities that can be used in many different ways. Traders use options to speculate, which is a relatively risky practice, while hedgers use options to reduce the risk of holding an asset.
* In terms of speculation, option buyers and writers have conflicting views regarding the outlook on the performance of an underlying security.
* For example, since a the option writer will need to provide the underlying shares in the event that the stock's market price will exceed the strike, an option writer that sells a call option believes that the underlying stock's price will drop relative to the option's strike price during the life of the option, as that is how he or she will reap maximum profit.
* This is exactly the opposite outlook of the option buyer. The buyer believes that the underlying stock will rise, because if this happens, the buyer will be able to acquire it for a lower price and then sell it for a profit.

Each contract will have a well defined contract size. For example, most equity options have a contract size of 100 shares. So, if the option is exercised, 100 shares of the underlying company must be transferred between the option holder and writer.

A way of quoting options prices through a list of all of the options for a given security.

This is a Technical Analysis category. Some Technical Analysis are based on oscillators. Oscillators are based on mathematical formulas that incorporate historical or recent prices of the stock.

* A situation in which the demand for a certain asset unjustifiably pushes the price of an underlying asset to levels that do not support the fundamentals.
* In technical analysis, this term describes a situation in which the price of a security has risen to such a degree - usually on high volume - that an oscillator has reached its upper bound. This is generally interpreted as a sign that the price of the asset is becoming overvalued and may experience a pullback.

* A condition in which the price of an underlying asset has fallen sharply, and to a level below which its true value resides. This condition is usually a result of market overreaction or panic selling.
* A situation in technical analysis where the price of an asset has fallen to such a degree - usually on high volume - that an oscillator has reached a lower bound. This is generally interpreted as a sign that the price of the asset is becoming undervalued and may represent a buying opportunity for investors.

Pattern Types have been grouped into several categories based on their behavior or the method that is used to detect the pattern. Examples of Pattern Categories are Bullish, Bearish, Classic, Short-term, Continuation and Reversal.

The number of days over which the pattern formed. Pattern Duration is equivalent to Pattern Length. In searching for Technical Analysis, one may specify the pattern duration in days. Longer duration patterns generally forecast price movement over a longer period of time. For example, a 90 day pattern anticipates price movement over the long term, compared to a shorter-term 30 day pattern.

Pattern Length is equivalent to Pattern Duration.

The specific type of pattern for pattern-based events. Examples of Pattern Types are: Head and Shoulders Bottom, Bearish Engulfing Line, Double Top. Refer to the detailed descriptions of each pattern for specific recommendations for the use of the pattern in trading.

The financial risk that a country's government will suddenly change its policies. Also known as "geopolitical risk".

The percentage of the breakout price that the price is expected to move based on this event. To calculate the Possible Target Price multiply the Possible Percentage Price Move by the Breakout Price. Take the result and add for Bottom patterns and subtract for Top patterns from the Breakout Price.

The price range that the instrument is expected to reach. This price range is determined by analyzing the event that has occurred.

A preferred stock is a class of stock entitling the holder to receive a specified dollar value per share upon liquidation of the company, and a fixed dividend paid before the common stock holders. Voting rights are usually limited to special situations such as when a certain number of dividends have been missed. Investors should also consider examining Technical Analysis for the underlying stock when researching convertible preferred shares. Technical Analysis may be considered less indicative for non-convertible preferred shares. Technical Analysis should be used as one piece of additional information within greater research regarding these instruments.

The risk that the value of a security or portfolio of securities will decline in the future

A significant short-term reversal in the price of a financial instrument or of a market in general. Prices for a security may often pullback immediately after a pattern is formed. For example a Double Top is pattern which indicates that the price of a stock is descending. When the price breaks through the confirmation point of this pattern it will often pullback or rise for a few days after the pattern has formed. It will then continue its downward trend.

An option contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time. The buyer of a put option estimates that the underlying asset will drop below the exercise price before the expiration date. When an individual purchases a put, they expect the underlying asset will decline in price.

Formerly the QQQ, this is the ticker symbol for the Nasdaq 100 Trust, which is an ETF that trades on the Nasdaq. This security offers broad exposure to the tech sector by tracking the Nasdaq 100 Index, which consists of the 100 largest and most actively traded non-financial stocks on the Nasdaq. It is also known as "cubes" or the "quadruple-Qs".

A significant short-term recovery in the price of a financial instrument or of a market in general after a period of decline.

The part of the candlestick that connects the opening and closing prices. The real body shows the opening and closing prices with a clear, or a dark, rectangle. When the rectangle or real body is clear, it means that the stock closed above its opening price. When the real body is dark, it means that the stock closed below its opening price.

The price at which a stock or market can trade, but which it cannot exceed, for a certain period of time. Often referred to as "resistance level". Acts like a ceiling.

A right is an instrument entitling current common stock-holders to purchase additional common shares directly from the company at a specified price within a specified time period. The price upon issue is usually at a discount. Investors should also consider examining Technical Analysis for the underlying stock when researching rights. Technical Analysis should be used as one piece of additional information within greater research regarding these instruments.

The chance that an investment's actual return will be different than expected. This includes the possibility of losing some or all of the original investment. It is usually measured by calculating the standard deviation of the historical returns or average returns of a specific investment.

This is capital that you can lose without having to risk your lifestyle. Investors who speculate in options or futures contracts should only use risk capital. The money that a person allocates to investing in high-risk securities.

The principle that potential return rises with an increase in risk. Low levels of uncertainty (low risk) are associated with low potential returns, whereas high levels of uncertainty (high risk) are associated with high potential returns. In other words, the risk-return tradeoff says that invested money can render higher profits only if it is subject to the possibility of being lost.

Relative Strength Index (RSI) is an oscillator that measures a particular stock's current relative strength compared to its own price history. The RSI is plotted on a vertical scale numbered from 0 to 100. A security is considered to be oversold when it falls below 30 and overbought when it rises over 70. Failure swings occur when in a downtrend the RSI fails to set a new low and then goes on to set a new high or in an uptrend when the RSI fails to set a new high and then goes on to set a new low.

* An area of the economy in which businesses share the same or a related product or service.
* A group of securities in the same industry or market.

The general name for stocks and shares of all types. A security is a financial instrument that shows that you own shares in a company (by owning stocks), have loaned money to a company, government, or municipality (by investing in bonds), or have rights to future ownership (as with options or warrants).

The bars that extend above and below the real body on a candlestick are called the upper and lower shadows. They indicate the high and low of the price for the period being depicted.

A candlestick with no lower shadow. A bottom reversal signal with confirmation the next trading bar.

A candlestick with no upper shadow. A bullish pattern during a downtrend and a bearish pattern during an uptrend.

Short refers to a bearish trading situation with the following implications:

* If you already have a short position you may consider holding or accumulating.
* If you already have a long position you may consider closing it out.
* If you don't have a position you may consider taking a short position.

Also known as taking a short position this is the process of selling a stock with the hope of buying it back at a lower price. Short sellers believe the price will decline. The uptick rule requires short sellers to sell only on an uptick (the sale must be executed at a price higher than the last trade). This is to prevent short sellers from driving down the price and creating a self-fulfilling prophecy.

Short selling involves borrowing stock (usually from a broker) to sell short and then using margin to finance the borrowing. If the price of the stock in question rises too far, the short seller will receive a margin call and be required to put up more money. A short squeeze occurs when the price advances so fast that short sellers are forced to cover their positions (buy the stock back), which drives prices even higher.

This is a Technical Analysis category. Some Technical Analysis represent the confirmation that a short-term pattern has formed. Short-term patterns are based on the shape and relationship of the candlestick(s) or price bar(s) representing one or multiple consecutive trading days. This includes patterns such as the Hanging Man and the Gap Up. The Technical Analysis is the confirmation that the pattern has formed in the price bar(s). These Technical Analysis are useful for suggesting possible short-term price movement. They are also useful for supporting or refuting the possible price movement suggested by classic patterns. Short-term patterns are often considered as supplementary information.

Standard Industrial Classification (SIC) code. A numbering system established by the U.S. Office of Management and Budget that identifies companies by industry. SIC codes are used to group companies and to promote the comparability of economic factors from various areas of the U.S. economy.

A candlestick pattern with a long upper shadow, long lower shadow and small real body. One long shadow represents some form of a reversal. The small body shows little movement from open to close, and the shadows indicate that both bulls and bears were active during the session. Even though the session opened and closed with little change, prices moved significantly higher and lower during the session.

A technical momentum indicator that compares the magnitude of recent gains to recent losses in an attempt to determine overbought and oversold conditions of an asset. A trader using RSI should be aware that large surges and drops in the price of an asset will affect the RSI by creating false buy or sell signals. The RSI is best used as a valuable complement to other stock-picking tools.

A situation in which an analyst or investor uses a systematic form of analysis to conclude that a particular stock will make a good investment and, therefore, should be added to his or her portfolio. The position can be either long or short and will depend on the analyst or investor's outlook for the particular stock's price.

An order placed with a broker to sell a security when it reaches a certain price. It is designed to limit an investor's loss on a security position.

The price level which, historically, a stock has had difficulty falling below. It is thought of as the level at which a lot of buyers tend to enter the stock. Often referred to as the "support level". Acts like a floor.

A rating of the symmetry of specific classic patterns. The rating ranges from 0 to 100 with 100 being a perfectly symmetrical pattern. Some experts consider the symmetry of a pattern to be important.

Technical Analysis is the practice of anticipating price changes of a financial instrument by analyzing prior price changes and looking for patterns and relationships in price history. Technical Analysis occur when a significant pattern has formed or a significant price activity has occurred in a financial instrument. Technical Analysiss highlight price situations that may be worth considering in researching an investment activity.

Technical Analysis can be used by investors to make more informed decisions about when to:

* Enter a new position (either a Long position or a Short position);
* Close an existing position;
* Wait for a better time to take action.

Technical Analysis supports and complements additional Investment Research, such as Fundamental Analysis.

Technical Analysis is the quantitative side of investment research. It is distinct from Fundamental Analysis, where investors use company and market information (such as earnings, balance sheet, interest rates etc.) to make investment decisions. In contrast, Technical Analysis is based on patterns and relationships in price history.

When researching warrants, convertible preferred shares or convertible debentures, investors should consider technical analysis for the underlying stock. Technical analysis may be considered less indicative for non-convertible preferred shares and non-convertible debentures. Technical analysis should be used as one piece of additional information within greater research for an instruments.

Events have been classified into four categories: Classic Patterns, Short-term Patterns, Indicators and Oscillators.

* Examples of Classic Patterns are Double Tops, Head and Shoulders Bottom, Ascending Continuation Triangle (Bullish).
* Examples of Short-term Patterns are Gap Up, Engulfing Line (Bearish), Island Top.
* Examples of Indicators are Moving Averages, Moving Average Crossovers.
* Examples of Oscillators are the RSI (Relative Strength Index) and MACD (Moving Average Convergence Divergence).

A line which is constructed by connecting a series of descending peaks or ascending troughs. The more times a trendline has been touched increases the significance of a break in the trendline. A trendline can act as either a support line or a resistance line.

Describes the price movement of a financial asset when the overall direction is upward. A formal uptrend is when each successive peak and trough is higher than the ones found earlier in the trend.

Refers to the amount of uncertainty or risk about the size of changes in a security's value. A higher volatility means that a security's value can potentially be spread out over a larger range of values. This means that the price of the security can change dramatically over a short time period in either direction. Whereas a lower volatility would mean that a security's value does not fluctuate dramatically, but changes in value at a steady pace over a period of time.

The number of shares or contracts traded in a security or an entire market during a given period of time. It is simply the amount of shares that trade hands from sellers to buyers as a measure of activity. If a buyer of a stock purchases 100 shares from a seller, then the volume for that period increases by 100 shares based on that transaction.
Volume is an important indicator in technical analysis as it is used to measure the worth of a market move. If the markets have made strong price move either up or down the perceived strength of that move depends on the volume for that period. The higher the volume during that price move the more significant the move.

A warrant is an instrument entitling current stockholders to purchase additional shares at a specified price within a specified time period. Investors should also consider examining Technical Analysis for the underlying stock when researching warrants. Technical Analysis should be used as one piece of additional information within additional research regarding these instruments.

A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity dates. The most frequently reported yield curve compares the three-month, two-year, five-year and 30-year U.S. Treasury debt. This yield curve is used as a benchmark for other debt in the market, such as mortgage rates or bank lending rates. The curve is also used to predict changes in economic output and growth.

When the indicator hooks back from the zero line in the MACD, CCI, or similar indicator