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Definition of Bar Chart A bar chart is a type of graph that uses rectangular bars to represent data. The length or height of each bar corresponds to the value it represents — longer bars mean higher numbers, shorter bars mean lower numbers. In finance, bar charts are commonly used to show things like stock prices, company earnings, revenue growth, or expense comparisons over time.

Definition of a Candlestick Chart A Candlestick Chart is a type of financial chart that shows how an asset’s price moves over a specific time period—whether that’s one minute, one day, or one month. Each “candlestick” represents four key data points...

Definition of Bollinger Bands In simple terms, Bollinger Bands show when a price may be overbought (too high) or oversold (too low) based on how far it moves from its average. In Plain English:Think of Bollinger Bands as a “mood ring” for market prices. When the bands expand outward, the market’s emotions are running hot—there’s higher volatility and larger price swings. When the bands tighten, the market’s taking a breather—lower volatility and smaller price moves.

Definition of RSI (Relative Strength Index) RSI is a momentum indicator used in technical analysis that measures the speed and change of price movements. It ranges from 0 to 100 and helps investors identify whether an asset—like a stock, ETF, or cryptocurrency—is potentially overbought or oversold.

Definition of MACD MACD (pronounced “mack-dee”) stands for Moving Average Convergence Divergence. It’s a popular technical indicator used by traders to analyze stock price trends and momentum. In simple terms, it shows the relationship between two moving averages of a stock’s price — usually the 12-day and 26-day exponential moving averages (EMAs).

Definition of Moving Average A moving average (MA) is a calculation that helps smooth out price data by creating a constantly updated average price over a specific time period. Investors and traders use moving averages to identify trends and potential buy or sell signals by filtering out short-term price noise.

Definition of Fibonacci Retracement A Fibonacci Retracement is a technical analysis tool that helps traders identify potential levels where a stock (or any financial asset) might reverse or “bounce back” after a price move.It’s based on the famous Fibonacci sequence — 0, 1, 1, 2, 3, 5, 8, 13, etc. — where each number is the sum of the two before it.

Definition of a Flag Pattern A Flag Pattern is a chart pattern in technical analysis that signals a short pause in a strong trend — like a pit stop before the market continues racing in the same direction. It looks just like it sounds: a small rectangular “flag” that forms after a sharp “flagpole” move up or down.

Definition of Cup and Handle A Cup and Handle is a chart pattern that signals a potential continuation of an uptrend after a brief period of consolidation. Imagine the price forms a “U” shape — that’s the cup. Then it drifts slightly downward or sideways — that’s the handle. When the handle finishes forming, the price often breaks out above the resistance line, signaling that buyers are back in control. It’s like the market taking a sip of coffee before charging full steam

Definition of Head and Shoulders A Head and Shoulders is a classic chart pattern used in technical analysis to predict a potential reversal in the price of a stock, commodity, or index. The pattern looks—quite literally—like a head with two shoulders...

Definition A Double Bottom is a chart pattern in technical analysis that signals a potential reversal in a downward trend. Picture the letter “W.” The price of a stock (or index, or crypto) falls, bounces up a bit, falls again to roughly the same low point, and then rises once more.

Definition of Double Top A Double Top is a chart pattern in technical analysis that signals a possible trend reversal. Imagine a stock price climbing, hitting a peak, pulling back a little, then climbing again—only to hit about the same peak a second time. After failing to break through that “ceiling” twice, the price often turns downward.

Definition of Dead Cat Bounce A dead cat bounce is a temporary recovery in the price of a declining stock or market before it continues to fall further. It looks like a rebound, but it’s short-lived. The name comes from the grim idea that “even a dead cat will bounce if it falls from a great height.” In other words: don’t mistake a quick uptick for a full recovery.

Definition of Bull Trap A Bull Trap happens when investors are tricked into thinking a falling market has turned around and started to rise, but the rally is only temporary. After pulling in optimistic buyers, the market quickly reverses downward again—“trapping” those who bought in too early. Think of it like stepping onto what looks like solid ground, only to discover it’s quicksand.

Definition of Bear Trap A bear trap is a false technical signal that tricks traders into thinking a market or stock is heading downward (bearish), only for it to quickly reverse upward (bullish). It often happens when prices break below a support level, making it look like a downtrend is starting, but then the market rebounds—“trapping” those who sold short or exited too early. In simple terms: a bear trap is when the market fakes you out on the downside.

Definition of Market Correction A market correction is when a stock market index (like the S&P 500 or Dow Jones) drops by 10% or more from its recent high but less than 20%. If the decline goes beyond 20%, that’s considered a bear market. Corrections are a normal part of the market cycle and usually don’t last very long—historically, they often resolve in a few months.

Definition of Volatility Index (VIX) The VIX is calculated by the Chicago Board Options Exchange (CBOE). It’s derived from the prices of S&P 500 index options. Higher option prices often mean investors are bracing for bigger swings in the market, which pushes the VIX higher.

Definition of MSCI MSCI stands for Morgan Stanley Capital International, a company that provides some of the most widely used investment indexes and analytics in the world. Think of MSCI as the “scorekeeper” for global stock markets. When you hear about funds that track the MSCI World Index or the MSCI Emerging Markets Index, what they’re really doing is following the performance of groups of stocks MSCI has bundled together.

Definition of Shanghai Composite Index The Shanghai Composite Index (often called the Shanghai Composite) is the main stock market index that tracks all the stocks listed on the Shanghai Stock Exchange (SSE) in China. Think of it as China’s version of the S&P 500 or Dow Jones in the U.S.—a barometer for how Chinese companies are doing and how investors feel about the Chinese economy.