Divergence
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.
Related terms
Momentum
A series of technical studies (such as RSI, MACD and Stochastics) that assess the rate of change in prices.
Read full definitionTechnical Analysis
Analysis of historical price and volume data to forecast future movements. Technical analysts use charts, patterns and indicators to identify trading opportunities.
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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 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.
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 definitionConsolidation
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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