Chart Patterns
This chart pattern is characterized by a series of higher lows and higher highs.
What is an ascending triangle?
This indicator measures the speed and change of price movements and is used to identify overbought and oversold conditions.
What is the Relative Strength Index (RSI)?
This is the strength of the trend and is determined by the slope and angle of the trend line.
What is trend strength?
These are signals that indicate a potential price movement but do not guarantee the actual price movement.
What are false signals?
This is a technique used to identify profitable investments based on the historical performance of the asset and its underlying financial and economic factors.
What is fundamental analysis?
This chart pattern is formed when the price movement creates a series of lower highs and a support level.
What is a descending triangle?
This indicator is used to identify the trend direction and momentum of a stock or asset by smoothing out price fluctuations.
What is a Moving Average (MA)?
This is the direction of the trend and is determined by the direction of the trend line.
What is trend direction?
This limitation of chart trend analysis is due to the lack of historical data to analyze.
What is limited historical data?
This is a technique used to identify profitable investments based on the analysis of past price movements and trends.
What is technical analysis?
This chart pattern is a sign of a potential trend reversal, characterized by three peaks with the middle peak being the highest.
What is a head and shoulders pattern?
This indicator combines two moving averages to identify trend direction and momentum, and is used to signal buy and sell opportunities.
What is Moving Average Convergence Divergence (MACD)?
This is a potential trend reversal point where the price movement changes direction and forms a new trend.
What is a reversal point?
This limitation of chart trend analysis ignores factors that affect the price of an asset, such as company performance or economic news.
What is ignoring fundamental analysis?
This is a popular investing strategy that involves buying and holding a diversified portfolio of low-cost index funds over the long term.
What is passive investing?
This chart pattern is a sign of a potential trend reversal, characterized by three troughs with the middle trough being the lowest.
What is an inverse head and shoulders pattern?
This indicator measures the volume flow of an asset, helping to confirm price trends and forecast future price movements.
What is On-Balance Volume (OBV)?
These are levels where the price movement has difficulty breaking through in the opposite direction, indicating a support or resistance level.
What are support and resistance levels?
This limitation of chart trend analysis is due to the subjective nature of the analysis and can lead to different interpretations of the same chart pattern.
What is the discretionary nature?
This is a popular investing strategy that involves actively buying and selling securities in an attempt to beat the market.
What is active investing?
This chart pattern is a consolidation phase characterized by two parallel lines and signals a period of uncertainty before the price movement breaks out in one direction.
What is a rectangle pattern?
This indicator uses standard deviation to create upper and lower bands around the moving average to identify high and low volatility periods.
What are Bollinger Bands?
This is a technical analysis tool used to connect the highs or lows of the price movement to identify a trend direction.
What is trend line analysis?
This limitation of chart trend analysis is due to sudden changes in market sentiment, causing price movements to deviate from the expected trend.
What is market volatility?
This is a retirement savings account that allows individuals to invest a portion of their pre-tax income in a variety of assets to grow tax-free until retirement age.
What is a 401(k) plan?