What are some technical terms commonly used in stock trading?

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