Bollinger Bands
A technical analysis tool consisting of a band plotted two standard deviations either side of a simple moving average, used to find support and resistance levels.
Related terms
Support
A price level where a market tends to encounter buying pressure and struggles to fall below, formed when buyers repeatedly step in at the same point. Technical analysts chart support alongside resistance to understand market trends and identify potential reversal points.
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A price level where a market tends to encounter selling pressure and struggles to rise above, formed when more traders repeatedly sell than buy at that point. Identified through technical analysis, resistance levels mark potential reversal points.
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A series of technical studies (such as RSI, MACD and Stochastics) that assess the rate of change in prices.
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Bar Chart
A chart type built from four significant points: the high and low prices, which form the vertical bar; the opening price, marked with a horizontal line to the left of the bar; and the closing price, marked with a horizontal line to the right.
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A chart pattern showing when demand and supply of a product are almost equal, resulting in a narrow trading range and the merging of support and resistance levels.
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A chart type used to analyse a market’s price. Unlike bar charts, candlestick charts show the market’s high, low, open and closing price within each period.
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A trader who analyses a market’s price history to determine future price trends, using a range of analytical tools and indicators to conduct technical analysis on a price chart.
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A period of range-bound activity after an extended price move, in which a market neither continues nor counters the longer-term trend.
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A technical analysis pattern named for its resemblance to a tea cup: a shallow, rounded saucer with a downward-trending handle extending from the right-hand side. The formation can occur over anything from several weeks to an entire year.
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