Consolidation
A period of range-bound activity after an extended price move, in which a market neither continues nor counters the longer-term trend.
Related terms
Range
When a security trades between consistent high and low price points for a given period, identified by charting the highs and lows across horizontal trendlines, for example a 52-week trading range.
Read full definitionBasing
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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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.
Read full definitionBollinger 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.
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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.
Read full definitionCup and Handle
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.
Read full definitionDivergence
When a security’s price deviates from a technical indicator, for example the indicator signals bullish conditions while the price falls, or signals bearish conditions while the price rises.
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