VIDEO LESSON - Price Action: Terms and Tips
30 April 2015, 21:11
- Trend: two successively higher tops and bottoms (uptrend)
- Trend: two successively lower tops and bottoms (downtrend)
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Other names for a positive trend: run up/bull run/rally
- Other names for a negative trend: run down/bear run/decline
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Trading range: the market moves up and down within a consistent range without establishing a definitive trend in one direction
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Consolidation: the range of price's movement constricts as the market becomes directionless
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Reversal: the market moves in the opposite direction from the previous trend, implying the end of that trend
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Retrace: the market moves some amount in the opposite direction from the
previous trend before the trend is eventually reinstated
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2 Attempts Rule: the idea that if the market attempts to do something twice and fails, the opposite will happen
- Break-out: the market breaks out of a trading range or a resistance level
- Clear-out: the market's break-out in one direction is quickly followed by its movement in the opposite direction
- Throwback: retracement after a break above
- Pullback: retracement after a break below
