Ever read a stock analysis and wonder what some of those terms mean? They rarely come out and say, "Buy this now." There are new terms are popping up. If you're a savvy investor (or even a beginner), you'll want to become familiar with these. The following list can help you get the most valuable information and make profitable trades.
Behavioral Exhaustion - An over-bought and oversold behavioral pattern.
Bottoming - There is downward pressure on the stock but the pressure is lessening with each passing day.
Bottom Reversal - An indication that a stock has bottomed, has formed a solid support level, and is looking to break to the upside. This is a bullish indication.
Convergence - Indicates two behavioral patterns are approaching equal value.
Divergence - Indicates two behavioral patterns are moving further apart.
Failure to fail or FTF - The stock has tested support and has failed to break through support. This is a positive, upward movement indication.
Failure to succeed or FTS - The stock has tested resistance and has failed to break through it. This is a negative, downward movement indication.
Negative convergence or NC - Indicates two behavioral patterns are approaching equal value. An example is the 17 day SMA (Simple Moving Average) crossing and moving below the 50 day SMA. This is a bearish indication.
Neutral - There is currently no clear indicator. The general direction is sideways with equal risk and reward.
Negative Reversal - An indication that a substantial change has or will soon occur in which the stock will see a reversal in trend from up to down.
Positive - An upward moving price trend.
Positive Convergence or PC - when 2 behavioral patterns are of or approaching equal value. An example is the 17 day SMA (Simple Moving Average) crossing and moving above the 50 day SMA. This is a bullish indication.
Positive Slope Convergence - A mathematical calculation of a behavioral factor represented by a curve or arc.
Positive Slope Shift - An early buy indicator.
Slope Shift - A transition of slope from negative to positive, or positive to negative.
Upside Breakout - The price of the stock has broken through resistance. This is a bullish indication.
Upside Reversal - An indication that a substantial change has or will soon occur in which the stock will see a reversal in trend from down to up.
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