Some Technical Analysis Terms and Examples

19 days ago
1 Min Read
291 Words

Many read my technical analysis posts but don't always understand the terms being used - so let's cover many I use and even some I don't so that everyone can understand what all the techno babble is about.


Glossary of Basic Terms

  • Candle Stick:

Shows the open, close, high and low price for a given time period. The body of the candle represent the difference in open and closing price, while the upper and lower wicks mark the high and low for the period.

  • Support/Resistance Line:

A price area that represents price stopping or reversing two or more times.

  • Ascending Triangle:

A chart pattern where higher lows are being made while price fails to make new highs.

  • Descending Triangle:

A chart pattern where lower highs are being made but price does not make new low prices.

  • Moving Average:

The average closing price of a coin over a specified period of time.

  • Catching a Falling Knife:

A term referring one's attempt to buy the bottom of an asset that is consistently falling in price.

Those are just a handful of the commonly used terms in technical analysis posts. There are plenty more, but these basics will get you started.

Advanced indicators like bollinger bands, fibanocci levels and RSI are all defined from price and moving average data so understanding the basics is the key.

More detailed lessons

You can watch videos I made on:

  • Spotting support/resistance levels
  • Recognizing Bullish U-turn patterns
  • Using multiple time frame analysis
    On my scaredycatguide website. The video course is free to view for the time being, but that won't last!

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