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Price Channels
A price channel is a pair of parallel trend lines that form a chart pattern for a stock or commodity. Channels may be horizontal, ascending or descending. When prices pass through and stay through a trendline representing support or resistance, the trend is said to be broken and there is a "breakout".Murphy, pages 400-401 References * John J. Murphy, ''Technical Analysis of the Financial Markets'', New York Institute of Finance, 1999, See also * Bollinger bands *Control chart *Donchian channel *Richard Donchian Richard Davoud Donchian (September 1905, in Hartford, Connecticut – April 24, 1993, in Fort Lauderdale, Florida) was an American commodities and futures trader, and a pioneer in the field of managed futures. The first publicly managed ... {{technical analysis Chart overlays ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Trend Line (technical Analysis)
In finance, a trend line is a bounding line for the price movement of a security. It is formed when a diagonal line can be drawn between a minimum of three or more price pivot points. A line can be drawn between any two points, but it does not qualify as a trend line until tested. Hence the need for the third point, the test. Trend lines are commonly used to decide entry and exit timing when trading securities. They can also be referred to as a Dutch line, as the concept was first used in Holland. A support trend line is formed when a securities price decreases and then rebounds at a pivot point that aligns with at least two previous support pivot points. Similarly a resistance trend line is formed when a securities price increases and then rebounds at a pivot point that aligns with at least two previous resistance pivot points. Stock often begin or end trending because of a stock catalyst such as a product launch or change in management. Trend lines are a simple and widely u ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Chart Pattern
A chart pattern or price pattern is a pattern within a chart when prices are graphed. In stock and commodity markets trading, chart pattern studies play a large role during technical analysis. When data is plotted there is usually a pattern which naturally occurs and repeats over a period. Chart patterns are used as either reversal or continuation signals. There are three main types of chart patterns which are used by technical analysts: traditional chart patternHarmonic Patterns* candlestick pattern Traditional Chart Pattern Included in this type are the most common patterns which have been introduced to chartists for more than a hundred years. Below is a list of the most commonly used traditional chart patterns: Reversal Patterns: # Double Top Reversal # Double Bottom Reversal # Triple Top Reversal # Triple Bottom Reversal # Head and Shoulders # Key Reversal Bar Continuation Patterns: # Triangle # Flag and Pennant # Channel # Cup with Handle Harmonic Pattern Harmonic ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Support (technical Analysis)
In stock market technical analysis, support and resistance are certain predetermined levels of the price of a security at which it is thought that the price will tend to stop and reverse. These levels are denoted by multiple touches of price without a breakthrough of the level. Support versus resistance A support level is a level where the price tends to find support as it falls due to an increase in demand for the asset. This means that the price is more likely to "bounce" off this level rather than break through it. However, once the price has breached this level, by an amount exceeding some noise, it is likely to continue falling until meeting another support level. A resistance level is the opposite of a support level. It is where the price tends to find resistance as it rises due to an increase in selling interest. Again, this means that the price is more likely to "bounce" off this level rather than break through it. However, once the price has breached this level, by a ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Resistance (technical Analysis)
In stock market technical analysis, support and resistance are certain predetermined levels of the price of a security at which it is thought that the price will tend to stop and reverse. These levels are denoted by multiple touches of price without a breakthrough of the level. Support versus resistance A support level is a level where the price tends to find support as it falls due to an increase in demand for the asset. This means that the price is more likely to "bounce" off this level rather than break through it. However, once the price has breached this level, by an amount exceeding some noise, it is likely to continue falling until meeting another support level. A resistance level is the opposite of a support level. It is where the price tends to find resistance as it rises due to an increase in selling interest. Again, this means that the price is more likely to "bounce" off this level rather than break through it. However, once the price has breached this level, by a ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Control Chart
Control charts is a graph used in production control to determine whether quality and manufacturing processes are being controlled under stable conditions. (ISO 7870-1) The hourly status is arranged on the graph, and the occurrence of abnormalities is judged based on the presence of data that differs from the conventional trend or deviates from the control limit line. Control charts are classified into Shewhart individuals control chart (ISO 7870-2) and CUSUM(CUsUM)(or cumulative sum control chart)(ISO 7870-4). Control charts, also known as Shewhart charts (after Walter A. Shewhart) or process-behavior charts, are a statistical process control tool used to determine if a manufacturing or business process is in a state of control. It is more appropriate to say that the control charts are the graphical device for Statistical Process Monitoring (SPM). Traditional control charts are mostly designed to monitor process parameters when the underlying form of the process distributions ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Donchian Channel
The Donchian channel is an indicator used in market trading developed by Richard Donchian. It is formed by taking the highest high and the lowest low of the last ''n'' periods. The area between the high and the low is the channel for the period chosen. It is commonly available on most trading platforms. On a charting program, a line is marked for the high and low values visually demonstrating the channel on the markets price (or other) values. The Donchian channel is a useful indicator for seeing the volatility of a market price. If a price is stable the Donchian channel will be relatively narrow. If the price fluctuates a lot the Donchian channel will be wider. Its primary use, however, is for providing signals for long and short positions. If a security trades above its highest ''n'' periods high, then a long is established. If it trades below its lowest ''n'' periods low, then a short is established. Originally the ''n'' periods were based upon daily values. With today's trad ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Richard Donchian
Richard Davoud Donchian (September 1905, in Hartford, Connecticut – April 24, 1993, in Fort Lauderdale, Florida) was an American commodities and futures trader, and a pioneer in the field of managed futures. The first publicly managed futures fund, Futures, Inc., was started by Donchian in 1949. He also developed the trend timing method of futures investing and introduced the mutual fund concept to the field of money management. Richard Donchian is considered to be the creator of the managed futures industry and is credited with developing a systematic approach to futures money management. His professional trading career was dedicated to advancing a more conservative approach to futures trading. Biography Donchian's parents were Armenian immigrants from Western Armenia, which was occupied by the Ottoman Empire in the 1880s, and had come to settle in the United States. As a young man Donchian went to school in Connecticut, later graduating from Yale University with a ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
