What are some technical terms commonly used in stock trading?

In stock trading, several technical terms are commonly used to describe market dynamics, trading strategies, and financial instruments. Here are some of the most frequently encountered technical terms: Bid ask , bid ask spread, volume, market order, limit order, stoploss order, market order,margin trading, moving average,rsi read less

Here are some commonly used technical terms in stock trading: 1. **Moving Average (MA)**: A calculation to analyze price trends by smoothing out fluctuations. 2. **RSI (Relative Strength Index)**: A momentum oscillator that measures the speed and change of price movements. 3. **MACD (Moving Average Convergence Divergence)**: A trend-following momentum indicator that shows the relationship between two moving averages. 4. **Bollinger Bands**: Volatility bands placed above and below a moving average, indicating potential overbought or oversold conditions. 5. **Support and Resistance**: Levels where the price tends to stop and reverse direction. 6. **Volume**: The number of shares traded during a given period, indicating market activity. 7. **Candlestick Patterns**: Patterns formed by the open, high, low, and close prices of a security over a certain period, used to predict market movements. 8. **Fibonacci Retracement**: A method of technical analysis for determining support and resistance levels based on the Fibonacci sequence. 9. **Breakout**: When the price of a security moves above or below a certain level, indicating a potential change in trend. 10. **Short Selling**: Selling borrowed shares with the intention of buying them back at a lower price. Understanding these terms can help traders make informed decisions and analyze market movements effectively. read less