TECHNICAL ANALYSIS TERMS (ALPHA C)

Candlestick

What Does Candlestick Mean?
A price chart that displays the high, low, open, and close for a security each day over a specified period of time.

Investopedia explains Candlestick
There are many trading strategies based upon patterns in candlestick charting.

Chaikin Oscillator

What Does Chaikin Oscillator Mean?
An oscillator created by subtracting a 10-day EMA from a 3-day EMA of the accumulation/distribution line.

Investopedia explains Chaikin Oscillator
This indicator is named after its creator, Marc Chaikin.

Chande Momentum Oscillator

What Does Chande Momentum Oscillator Mean?
A technical momentum indicator invented by the technical analyst Tushar Chande. It is created by calculating the difference between the sum of all recent gains and the sum of all recent losses and then dividing the result by the sum of all price movement over the period. This oscillator is similar to other momentum indicators such as the Relative Strength Index and the Stochastic Oscillator because it is range bounded (+100 and -100).

Investopedia explains Chande Momentum Oscillator
The security is deemed to be overbought when the momentum oscillator is above +50 and oversold when it is below -50. Many technical traders add a nine-period moving average to this oscillator to act as a signal line. Bullish signals are generated when the oscillator crosses above the signal, and bearish signals are generated when the oscillator crosses down through the signal.

Channel

What Does Channel Mean?
1. The system of intermediaries between the producers, suppliers, consumers, etcetera, for the movement of a good or service. 

2. The technical range between support and resistance levels that a stock price has traded in for a specific period of time.

Investopedia explains Channel
1) There are different types and flavors of channels. Examples are sale channels, distribution channels, Internet channels, and so forth. 

2) A breakout of a technical channel is seen as a bullish (on an upward breakout) or bearish signal (on a downward breakout).

Chartered Market Technician - CMT

What Does Chartered Market Technician - CMT Mean?
A professional designation given by the Market Technicians Association (MTA) to financial professionals who prove their proficiency in technical analysis.

Investopedia explains Chartered Market Technician - CMT
To be granted the designation, a candidate must pass three examination levels and agree to be bound by the MTA code of ethics. Also, to register for the CMT program, an individual must be a paying member of the MTA.

Chartist

What Does Chartist Mean?
Another name for a technical analyst. This is a person who uses charts to identify patterns that can suggest future activity.

Investopedia explains Chartist
Chartists use technical analysis for just about any type of financial security, especially stocks and commodities.

Chikou Span

What Does Chikou Span Mean?
A component of the Ichimoku Kinko Hyo indicator that is created by plotting recent price movement 26-periods behind the latest closing price. The number of periods used to lag the Chikou span is customizable so that transaction signals are generated more or less frequently.
 
Also known as the "lagging span".

Investopedia explains Chikou Span
The trend is deemed to be upward when the Chikou span is located above the closing prices and downward when the indicator is located below them. Many traders watch for the Chikou span to cross below the closing prices as a signal that the price of the asset is getting exhausted and is likely to experience a pullback.

Choppy Market

What Does Choppy Market Mean?
A stock market condition whereby prices swing up and down considerably but with no resulting overall price movement in either direction.

Climax

What Does Climax Mean?
Following a protracted period of selling or buying, a point wherein market trends are retarded or discontinued.

Close Location Value - CLV

What Does Close Location Value - CLV Mean?
A measure used in technical analysis to determine where the price of the asset closes relative to the day's high and low. The CLV ranges between +1 and -1, where a value of +1 means the close is equal to the high and a value of -1 means the close is equal to the day's low.

Commodity Channel Index - CCI

What Does Commodity Channel Index - CCI Mean?
An oscillator used in technical analysis to help determine when an investment vehicle has been overbought and oversold.  The Commodity Channel Index, first developed by Donald Lambert, quantifies the relationship between the asset's price, a moving average (MA) of the asset's price, and normal deviations (D) from that average. It is computed with the following formula:

Commodity Selection Index - CSI

What Does Commodity Selection Index - CSI Mean?
A technical momentum indicator that attempts to identify which commodities are the most suitable for short-term trading. The larger the CSI value, the stronger is the trend and volatility characteristics associated with the asset. This indicator should only be used by traders who can handle large amounts of volatility as it indicates strong trending, but reversals are always possible.

Common Gap

What Does Common Gap Mean?
A price gap found on a price chart for an asset. These gaps are brought about by normal market forces and, as the name implies, are very common. They are represented graphically by a non-linear jump or drop from one point on the chart to another point. 

Confirmation

What Does Confirmation Mean?
1. The occurrence of two or more indicators corresponding with one another and thereby corroborating the predicted trend. 

2. The written acknowledgment provided by a broker indicating that a trade has been completed. This includes details such as the date, price, commission, fees and settlement terms of the trade. 

Confirmation On A Chart

What Does Confirmation On A Chart Mean?
An indicator or chart pattern that provides evidence that the initial trading alert in question is indicative of an actual trading opportunity. Traders look to other technical indicators to confirm their expected prediction so that they can have as many technical factors working in their favor as possible. This increases the probability of making a highly successful trade.

Congestion

What Does Congestion Mean?
1. A market situation whereby the demand of contract holders wishing to exit their existing positions exceeds the supply of willing participants wishing to enter into the offsetting position. 

2. A period of time when a stock trades either below resistance or above support, or both.

Consolidation

What Does Consolidation Mean?
In technical analysis, the movement of an asset's price within a well-defined pattern or barrier of trading levels. Consolidation is generally regarded as a period of indecision, which ends when the price of the asset breaks beyond the restrictive barriers. Periods of consolidation can be found in charts covering any time interval (i.e. hours, days, etc.), and these periods can last for minutes, days, months or even years. Lengthy periods of consolidation are often known as a base.

Continuation Pattern

What Does Continuation Pattern Mean?
A technical analysis pattern that suggests a trend is exhibiting a temporary diversion in behavior and will eventually continue on its existing trend.

The symmetrical triangle charts displayed below are both exhibiting a continuation pattern. Notice how the chart extends above (below) its existing pattern.

Coppock Curve

What Does Coppock Curve Mean?
A long-term price momentum indicator used primarily to recognize major bottoms in the stock market. It is calculated as a 10-month weighted moving average of the sum of the 14-month rate of change and the 11-month rate of change for the index. 

Also known as the "Coppock Guide".

Count

What Does Count Mean?
A trend analysis using point and figure charts to estimate the vertical movement of prices.

Countertrend Strategy

What Does Countertrend Strategy Mean?
A trading strategy where an investor attempts to make small gains through a series of trades against the current trend. It is also known as "counter-trend trading".

Crossover

What Does Crossover Mean?
The point on a stock chart when a security and an indicator intersect. Crossovers are used by technical analysts to aid in forecasting the future movements in the price of a stock. In most technical analysis models, a crossover is a signal to either buy or sell. 

Below we have a stock that falls below its 20-day moving average - a bearish sign.

Cumulative Volume Index - CVI

What Does Cumulative Volume Index - CVI Mean?
A momentum indicator that gauges the movement of funds into and out of the entire stock market by adding the difference between advancing and declining stocks to a running total.

Cup and Handle

What Does Cup and Handle Mean?
A pattern on bar charts resembling a cup with a handle. The cup is in the shape of a "U" and the handle has a slight downward drift. The right-hand side of the pattern has low trading volume. It can be as short as seven weeks and as long as 65 weeks. 

As the stock comes up to test the old highs, the stock will incur selling pressure by the people who bought at or near the old high. This selling pressure will make the stock price trade sideways with a tendency towards a downtrend for four days to four weeks... then it takes off. Below is an example of a cup and handle chart pattern: