SWING TRADING DEFINITIONS
Abandoned Baby -- A 3-bar candlestick reversal pattern. A single bar gaps up or down but then immediately gaps back in the opposite direction on the next bar. The shadow of the lone candle never crosses the shadow of the bar before the first gap or after the second gap.
Accumulation-Distribution (Acc-Dis) -- The underlying buying or selling pressure within a particular stock.
Adam and Eve (A&E) -- Top or bottom reversal pattern noted by its sharp, volatile first high (low) and slower, rounded second high (low).
Ascending Triangle -- A common continuation pattern that forms from a rising lower trendline and a horizontal top resistance line.
AvgLOSS -- A performance measurement that shows the total losses divided by the number of losing trades.
AvgWIN -- A performance measurement that shows the total profits divided by the number of winning trades.
Bear Hug -- A trading strategy that finds short-sale opportunities in weak markets that rally into resistance or narrow range bars on the verge of breakdown.
Bollinger Bands (BB) -- Elastic support and resistance channels above and below price bars that respond to the tendency of price to draw back to center after strong movement in either direction. The Bollinger Band center band sets up at the moving average chosen for the indicator.
Breakaway Gap -- A classic gap popularized in Technical Analysis of Stock Trends that signals the start of a new trend after a prolonged basing period.
Bucket Shops -- The stock gambling parlors that catered to short-term speculation in the early 20th century. Fictional trader Jesse Livermore discusses his experiences in them in the classic Reminiscences of a Stock Operator.
Charting Landscape -- A three-dimensional view that evaluates complex price action through multiple layers of information on a single price chart.
Coiled Spring -- A trading strategy that executes a position at the interface between a range- bound market and a trending market.
Continuation Gap -- A classic gap popularized in Technical Analysis of Stock Trends that signals the dynamic midpoint of an ongoing trend.
Convergence-Divergence (C-D) -- The tendency of two or more charting landscape features to confirm or refute an expected price outcome.