Basic Technical Analysis Terms

I'm only going to list the most basic and common terms at this time. When
(and if) you purchase any technical analysis software, you'll get a set of
operation instructions that will cover all the terms for each application.
You should order a technical analysis book from Equis. (page 27)

Accumulation  Occurs when the supply of a security is less than the
demand.

Bottom  A low for a security or the overall market.

Breadth  The number of stocks advancing minus those declining.

Channel  Trading range between two parallel lines in which prices move.

Congestion Area  A sideways trading range where supply and demand
balance out.

Consolidation Area  A trading range in which prices move until continu-
ing in the same direction as the trend prior to the consolidation area.

Cycle  A price pattern of movement that regularly occurs in a given time
interval.

Distribution  Occurs when the demand for a security is less than the
supply.

Envelope  Also known as a trading band. Parallel lines above and below
a graph containing normal price fluctuations.

Exhaustion  When buying power is no longer enough to move prices up
or when selling power is no longer enough to move prices down.

False Breakout  A breakout of a chart pattern that aborts.

Gap  Represents a price range on a chart at which no trading occurs.

Momentum  The rate of expansion of a security's price or volume.