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| Saucer (bowl) Pattern |
| A very slow and gradual change in trend
from up to down or from down to up. Volume diminishes as the
market makes its gradual turn, and then gradually increases as the
new direction begins to take hold. The cutlined pattern resembles
a bowl. |
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Secondary (intermediate) Trend |
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Represents corrections in the primary trend and usually lasts for three weeks to
three months. These intermediate relations usually retrace one-third to
two-third of the previous trend. Often the retracement will be about half, or
50%.
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Sentiment Indicators |
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Monitor the performance of
different groups such as odd lotters, mutual funds and
floor-specialists. Enormous importance is placed on
sentiment indicators that measure the overall market
bullishness and bearishness on the theory that the
majority opinion is usually wrong.
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Sideway Pattern
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A flat, horizontal price pattern.
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Simple Moving Average
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A moving average that employs an arithmetic mean. It
covers the average of a ten day period and assign
equal weight to each days price.
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| Support and Resistance |
Support level for a share is the price
level at which the said share finds its support in a falling
market. If a share breaks its support level then it falls very
fast towards its next support level.
Resistance level of a stock is a price level at which the said
share has resistance in a rising market. If a share successfully
crosses its resistance level then another price rally upwards to
the next resistance level of the share starts from there.
These support and resistance levels play a crucial role in the
movement of stock as well as commodity markets. Traders also try
to keep pivot points of the support resistance levels to monitor
the movements.
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Support
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A level or area on the chart under the market
where buying interest is sufficiently strong to
overcome selling pressure. Usually a support level is
identified beforehand by a previous reaction low. It
is a place in the stock market terminology where
buying comes and the stock stops falling. The concept
of buying at support is very important as once a major
support level is breached, it is the first warning
that the trend is changing to down.
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Symmetrical Triangle (coil)
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This pattern comes in to picture in a volatile
security, the volatility of which decreases with time.
The formation is such that the rallies fail to meet
the earlier top and decline fails to touch the earlier
low. It results in the top looking as Down
slanting boundary line and bottom looks as Up
slanting line. Both of these lines converge at the
apex, which forms a triangle called as Symmetrical
triangle. Normally for a good move, the pattern in
reference should try to take a break not near the apex
but before the apex as if it reaches the apex, the
intensity of the pattern is reduced. It is usually a continuation pattern, it represents a pause
in the existing trend after which the original trend
is resumed.
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Stock
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It is referred to as a share of the limited companies
in question and it confers the right of a part of a
company. The
loss and profit of a company is distributed as
dividend to the shareholder or stockholder.
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Stock Exchange
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Stock Exchange refers to the place where people or
companies or mutual funds buy and sell shares in a
given company. Example:-
In Indian context NSE, BSE are the main stock
exchanges.
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Stock Option
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Stock Option gives the right to buy or sell a stock at
a future date at a fixed price. Stock options are
traded on the stock exchanges.
The term stock option also refers to the
Employees Stock Option Scheme wherein they are granted
an option to buy the underlying stocks of a company at
a fixed price at a given date after they have worked
in the company for certain years.
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Straddle
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When an investor expects violent movements in the
market but he is not sure of the direction of it then
he may enter into a straddle strategy that means
buying a Call and a Put together of the same strike
price and same expiry. Normally this happens when some
major announcement is due in the market like results
of a company etc.
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S&P 500
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This Index represents the top 500 US companies traded
on New York Stock Exchange and NASDAQ.
In India, S&P 500 Nifty Index is just like
S&P 500 of US.
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