Continuation Pattern
What is a Continuation Pattern? A continuation pattern, commonly referenced in technical analysis, is a pattern that forms within a trend that generally signals a trend continuation. In contrast to reversal patterns, continuation patterns signal a temporary consolidation in the middle of a trend. Common Types of Continuation Patterns Continuation patterns may be identified on...
Pennant Pattern
What is a Pennant Pattern? A pennant pattern, referred to in technical analysis, is a continuation pattern that is seen when a security experiences a large movement to the upside or downside, followed by a consolidation period, before subsequently moving in the same direction. Key Characteristics of a Pennant Pattern When looking at a pennant...
Market Correction
What is a Market Correction? A market correction refers to a dip of 10%-20% in a stock market index. It can precede a bear market, which is a drop of 20% or greater in a stock market index. More broadly, a correction is a 10% to 20% drop in a stock market index or individual...
Bear Market
What is a Bear Market? A bear market is a finance jargon used to describe a steep drop of 20% or greater in an asset from its most recent high, which may happen over the course of weeks or months and may be attributable to many reasons. The term is most commonly used to describe...
Paper Trading
What is Paper Trading? Paper trading is a form of simulated trading where an individual makes trades without committing real money. This is done by writing the trade on paper (hence the term “paper trading”) rather than placing a real order through a brokerage. Understanding Paper Trading Paper trading is frequently used by first-time traders...
