Bullish Harami Definition

[Bullish Harami Definition]

The bullish harami is used to show the reversal of a previous downtrend, and the resumption of an uptrend. It is a signal to go long on an asset.

[Bullish Engulfing Pattern Definition]

The bullish engulfing pattern is used to signify that the price of the asset will rise, as the second candle (the bullish one which engulfs the smaller bearish first candle) is a sign that buyers have driven prices back upwards from the previous lows.

[Bullish Belt Hold Definition]

This is a bullish reversal candlestick pattern which is not very reliable as a stand-alone signal. It must be combined with other methods of technical analysis to be successful.

[Bullish Abandoned Baby Definition]

It is a highly reliable candlestick pattern which shows clearly that buyers have entered and taken over the market.

[Breakout Trader Definition]

A breakout trader will typically wait for the price to break a key support level or a key resistance level. Breakout traders typically use Stop orders for their trades.

[Breakdown Definition]

Breakdowns typically occur when there is a heavy buildup of traders whose short positions push hard against a key level of support. So we speak of breakdowns when there is heavy selling pressure at a support, and this leads to a break of support with heavy falls in price. These can be traded with stop orders in the sell direction.

[Breakaway Gap Definition]

The breakaway gap is caused by sudden increase in the volume of an asset in the direction of the previous trend. This leads to a massive movement in the price of the asset, in the direction of the gap. A good example is the gap of 400 pips which occurred in crude oil prices on the weekend the Libyan civil war erupted in February 2011.

[Breadth Thrust Indicator Definition]

It is used as a trend indicator to detect long term trends in the equity markets.

[Breadth of Market Theory Definition]

The breadth of market theory simply serves to predict market direction as a function of the number of companies whose prices are advancing to those whose prices are declining. This provides information as to the sustainability of the current trend.

[Breadth Indicator Definition]

It is used by investors to verify whether a market is bullish, bearish or neutral.

[Box Size Definition]

This is a user-specified price interval in a point and figure chart that is required for the chart to move. It is the amount of price movement that is required to create a new X or O column on the chart.

[Bollinger Band® Definition]

This is a trend determining tool that can be used to trade range-bound markets or trending markets in combination with other technical indicators.It is a registered trademark of John Bollinger who developed it and it is used to give a working definition of a security’s upper and lower price limit, which is to show if volatility is increasing, decreasing or staying the same.

[Blow-Off Top Definition]

It signals a bearish trend.

[Blowoff Definition]

The blowoff effect is caused by the latecomers to the bullish party, entering bullish positions in an already overbought asset. This is soon followed by bearishness as the initial traders offload their positions on these traders.

[Bell Curve Definition]

It is a graph of a normal distribution, which is a reflection of most human activity, with the best and worst on the extremes and most being located in the centre of the chart distribution.

[Bearish Harami Definition]

This is a bearish reversal candlestick pattern which can be used to initiate a short position in the financial markets.

[Bearish Engulfing Pattern Definition]

This is a bearish reversal candlestick pattern which can be used to initiate a short position in the financial markets.

[Bearish Belt Hold Definition]

This is a bearish reversal candlestick pattern which is not very reliable as a stand-alone signal. It must be combined with other methods of technical analysis to be successful.

[Bearish Abandoned Baby Definition]

It is a highly reliable candlestick pattern which shows clearly that sellers have entered and taken over the market, thereby checkmating the prior trend.

[Basing Definition]

It implies that the market trend is unlike to be bullish or bearish in the near future.

[Bar Definition]

A bar shows a vertical line and four short horizontal lines at right angles from the long vertical line to indicate the open, high, low and close prices of an asset.

[Ax Definition]

Day traders mostly trade in the same direction of the Ax.

[Average True Range - ATR Definition]

ATR is an index of volatility, with high ATR indicating high volatility and low ATR indicating low volatility.

[Average Directional Index - ADX Definition]

ADX being direction-independent, can be used to determine entrance and exit points for an investment.

[Autoregressive Definition]

Autoregression is the basis of technical analysis, which aims to use certain setups that produced certain trade results in the past to reproduce the same effect whenever they occur again and again.