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Glossary A - C

 

Technical Analysis contains many terms with specific meanings.
Some of them are described here.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z


A

ABSOLUTE VALUE

The absolute value of a number is the number’s value ignoring the sign of the number. For example, the absolute value (abbreviated ABS) of +100 is 100. This is shown as ABS(100) = 100. The absolute value of minus 80 is 80. ABS(-80) = 80. See Average True Range.

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ACCUMULATION

A process that is the result of buying issues in small lots, with the objective of minimizing a price increase. See also Distribution.

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ADOBE PORTABLE DOCUMENT FORMAT (PDF)

A widely utilized file format that preserves fonts, tables and other complex elements. Adobe provides their reader at no charge. If you don't have Adobe Acrobat Reader installed on your computer, you may get a copy of it from www.adobe.com web site or by clicking the "Get Adobe Reader" icon below.

Get Adobe Reader

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ADX - See Average Directional Movement Index

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ALGORITHM

A step-by-step computational procedure for solving a problem in a pre-defined manner.

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AMERICAN STANDARD CODE FOR INFORMATION INTERCHANGE
(ASCII)

ASCII is one of the oldest computer code standards, describing 128 characters: the upper and lower case letters “A” through “Z”, the digits zero through nine, punctuation symbols, and a few text-based control characters.

The term “high order ASCII” is a misnomer for a similar specification for text, coded by the decimal values 128-255. These are actually ASCII “extensions” developed to handle graves, tildes and other accented or non-English characters.

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ARMS' EASE OF MOVEMENT

The Ease of Movement technical analysis indicator (TAI) relates price change and volume. It calculates the “ease” at which prices are moving. The larger the price move and the lighter the volume, the easier the movement. More about this TAI . . .

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AROON 270

Aroon 270 is a long-term use of the Aroon Oscillator. It consists of three associated leading trend indicators: two lines, Aroon(up) and Aroon(down), and Aroon(oscillator), which is the difference of the two. Aroon is used to determine whether an issue is trending or non-trending and how strong the trend is. More about this technical analysis indicator . . .

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AROON UP / DOWN / OSC - See Aroon(up)(down)(oscillator)

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AROON (UP)(DOWN)(OSCILLATOR)

The Aroon(up)(down)(oscillator)is a useful gauge trend strengths both up and down. More about this technical analysis indicator . . .

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ASCII - See AMERICAN STANDARD CODE FOR INFORMATION INTERCHANGE

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ATR - See Average True Range

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AVERAGE DIRECTIONAL MOVEMENT INDEX (ADX)

ADX is an n-period exponential smoothing indicator developed by Wilder, one of a set of indicators he developed. ADX is used to determine the existence and strength of the current environment. Is it trending or non-trending? If trending, is the trend strong or weak? More about this technical analysis indicator . . .

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AVERAGE TRUE RANGE (ATR)

Average True Range (ATR) measures only volatility, not direction or trend duration. Also see Standard Deviation. More about the ATR technical analysis tool . . .

 

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B

BEARISH

Think the market is headed down. See Bullish

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BOTTOM

The bottom is the lowest point or price for an issue, which is then followed by an increase. It also refers to a particular support level, or the lowest price during a specific time frame. See also Top.

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BOLLINGER BANDS

Bollinger Bands provide a comparison of volatility and price levels over a prescribed period. The three “bands” are a simple moving average SMA between an upper band (SMA plus a number of standard deviations (SDs) and a lower band (SMA minus the same number of SDs). More about this technical analysis indicator . . .

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BREAKAWAY GAP - See GAP – Breakaway

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BULLISH

Thinking the market is headed up. See Bearish.

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BUY

The trade of an issue when initiated by a buyer. The transaction must be completed before it can be called a buy. For every trade there is a buyer and a seller. See also Sell.

 


C


CCI - See Commodity Channel Index (CCI)

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CHAIKIN (ACCUMULATION/DISTRIBUTION) OSCILLATOR

Also called Chaikin Oscillator, Chaikin Accumulation/Distribution Oscillator or Chaikin A/D Oscillator. Do not confuse this TAI with the Chaikin Money Flow Oscillator (below). The Chaikin Oscillator is based on the Accumulation-Distribution Line, upon which it depends. Hence it is an indicator of an indicator. More about this technical analysis indicator . . .

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CHAIKIN MONEY FLOW OSCILLATOR (CMF or CVAP)

Sometimes called Chaikin Money Flow, Chaikin’s Money Flow Oscillator, Chaikin’s Money Flow, or just Money Flow. Also known as Volume Accumulation Oscillator or Chaikin Volume Accumulation Percent. Do not confuse this TAI with the Chaikin Oscillator (above). This technical analysis indicator (TAI) compares today’s closing price to the daily high-low range to determine the volume flowing into (or out of) a security; it then compares today’s volume to the total volume. More about this TAI . . .

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CHAIKIN OSCILLATOR - See Chaikin (Accumulation/Distribution) Oscillator

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CHAIKIN VOLUME ACCUMULATION PERCENT - See Chaikin Money Flow Oscillator (CMF or CVAP)

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CHANDE MOMENTUM OSCILLATOR (CMO)

The Chande Momentum Oscillator, often abbreviated to CMO, primarily looks for extreme overbought and oversold conditions and differs from other momentum oscillators by using both up and down day’s data to measure momentum directly. The CMO can also be used to look for trends. More about this technical analysis indicator . . .

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CMO - See Chande Momentum Oscillator

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COMMA-SEPARATED VARIABLE FILE (CSV)

CSV is a common file format used to transfer organized data between databases, spreadsheets, and other programs that handle organized data. Characters in a CSV file are all plain text ASCII characters. Each line up to the line-end character(s) (formerly called the carriage return-line feed from older typewriter technology) is a record. The fields (or items) within a record are divided by a comma. Hence the “comma-separated.” Each record must have the same number of fields (commas). An advantage of CSV is that it is a very low level format and can be read by a wide range of computers from some personal digital assistants to the most advanced super computer. CSV is also operating system non-specific, it can be used under Windows of all varieties, Unix of many varieties (including Linux) and MacIntosh operating systems.

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COMMON GAP - See GAP – Common

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COMMODITY CHANNEL INDEX (CCI)

CCI is a price oscillator used to find trend changes and strength. Despite the word “commodity” in its name, the CCI can be applied to a wide range of issues. More about this technical analysis indicator . . .

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CONFIRMING TECHNICAL ANALYSIS INDICATOR
or CONFIRMING (TAI)

This term describes a case where a TAI will generate a positive development only if another independent TAI is already generating a positive development. A confirming TAI may also be a dependent TAI. For an example, see Bollinger Bands and their relationship to Volume * Price Momentum Oscillator.

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CONSOLIDATION

In technical analysis (as opposed to accounting), consolidation refers to price movement within a well-defined pattern or within a range-bound series of trading levels. See Non-Trending.

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CONTINUATION GAP - See GAP – Continuation

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CMF - See Chaikin Money Flow Oscillator (CMF)

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CPD - See Cumulative Positive Development

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CRABBING MARKET - See Non-Tending

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CROSS OVER - See x+

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CROSS UNDER - See x-

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CSV - See Comma-Separated Variable File

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CUMULATIVE POSITIVE DEVELOPMENT (CPD)

A Cumulative Positive Development (CPD) exists when a previously new positive development (NPD) remains positive. Every CPD is either a NPD today or was an NPD in the past.

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CYCLICAL MARKET

Smaller cyclical markets occur during the longer and larger secular markets. See also Secular Markets.

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CVAP - See Chaikin Money Flow Oscillator (CMF)

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A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

 

 

 
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