Tuesday, January 20, 2015

Basic Technical Analysis terminology

Below is the compilation of basis of technical analysis in simple language.  You need to understand these terms in order to learn technical analysis of stock market, forex, Gold, Silver etc.

Technical Analysis
The study of markets and securities based on historic price.

Moving Average
Price average that, for a specific period (eg 30 days), picks up the price for the latest day and drops the price for the earliest day.

Support Level
The level at which a stock price stops falling due to market demand.

Resistance Level
The level beyond which a stock price can not rise due to selling pressure in the market.

Total number of shares of a security traded in a certain period.

When a stock rises above its resistance level and continues to rise at a rapid pace.

Top Out
The end of a period of increase in a stock price or market level which signals it will begin to fall.

Chart Pattern
Graphic illustration of price performance using historic data that is used to predict the next price move.

Technical Analysis
Studies based on historical market value of the securities.

Moving Average
A price-index, in a certain period (eg 30 days) use a recent day’s price, excluding the first day’s price.

Support line
Because the stock market drop in a line needs to stop.

Resistance line
The stock market sell-off due to the pressure of a line of stopped rising.

The total turnover of securities transactions for a certain period.

Shares break through resistance line continues to rise rapidly.

Increased fatigue
Tail rose during the show will begin to fall.

Technical Graphics
By using historical data to predict stock price volatility for the next illustration.

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