Trend Terms

Consolidation is a sideways trading range where buyers and sellers balance out before the next directional move.

A continuation pattern signals that a trend is likely to resume after a brief consolidation, such as flags or triangles.

A correction is a counter-trend move that retraces part of the prior advance or decline, often creating better entry prices.

A death cross occurs when a short-term moving average drops below a long-term moving average, confirming bearish momentum.

A downtrend features lower highs and lower lows, signalling persistent selling pressure and bearish sentiment.

An exhaustion gap appears near the end of a trend when price gaps beyond prior extremes but quickly fails, signaling trend fatigue and potential reversal.

A golden cross occurs when a shorter-term moving average crosses above a longer-term average, signaling a potential shift to bullish momentum.

An impulse wave is the five-leg move in Elliott Wave Theory that drives price in the direction of the dominant trend with expanding momentum.

Mean reversion assumes price will return to its average after deviations, using statistical tools to fade overextended moves.

Momentum measures the speed or velocity of price changes in a market, with high momentum indicating strong trends and potential continuation of directional moves.

A pullback is a temporary pause or minor reversal during an ongoing trend, offering lower-risk entry opportunities before the primary trend resumes.

A ranging market oscillates between horizontal support and resistance levels, reflecting balanced order flow without sustained trend direction.

A reversal represents a complete change in the primary trend direction, where an uptrend transitions to a downtrend or vice versa, marking a fundamental shift in market sentiment.

A trend is the general direction a market is moving. Uptrends show higher highs and higher lows, downtrends show lower highs and lower lows.

An uptrend is a market condition characterized by prices consistently making higher highs and higher lows, indicating sustained buying pressure and bullish momentum.