Author: Thong Tran

Ascending Channel definition explanation

What is Ascending Channel?
An ascending channel is the price action contained between upward sloping parallel lines. Higher pivot highs and higher pivot lows are technical signals of an uptrend. Trendlines frame out the price channel by drawing the lower line on pivot lows, and the upper line is the channel line drawn on pivot highs. Price is not always perfectly contained but the channel lines show areas of support and resistance for price targets. A higher high above an ascending channel can signal continuation. A lower low below the low of an ascending channel can signal trend change. Read more for examples and further explanation including related video clips and also comments
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Aroon Indicator definition explanation

What is Aroon Indicator?
A technical indicator, developed by Tushar Chande in 1995, used for identifying trends in an underlying security and the likelihood that the trends will reverse. It is made up of two lines: one line is called “”Aroon up””, which measures the strength of the uptrend, and the other line is called “”Aroon down””, which measures the downtrend. The indicator reports the time it is taking for the price to reach, from a starting point, the highest and lowest points over a given time period, each reported as a percentage of total time. Both the Aroon up and the Aroon down fluctuate between zero and 100, with values close to 100 indicating a strong trend, and zero indicating a weak trend. The lower the Aroon up, the weaker the uptrend and the stronger the downtrend, and vice versa. The main assumption underlying this indicator is that a stock’s price will close at record highs in an uptrend, and record lows in a downtrend. Read more for examples and further explanation including related video clips and also comments
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Arbitrageur definition explanation

What is Arbitrageur?
A type of investor who attempts to profit from price inefficiencies in the market by making simultaneous trades that offset each other and captures risk-free profits. An arbitrageur would, for example, seek out price discrepancies between stocks listed on more than one exchange, buy the undervalued shares on one exchange while short selling the same number of overvalued shares on another exchange, thus capturing risk-free profits as the prices on the two exchanges converge. Read more for examples and further explanation including related video clips and also comments
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Announcement Effect definition explanation

What is Announcement Effect?
The impact on markets from the news that a change will occur at some future date. It can be used as a general term for the reaction to any development that affects trading, such as a change in dividend policy or a stock split. It is most often used, however, to describe investor reactions to changes in monetary policy, such as a hike or cut in a key interest rate level.

Also known as a “”signal effect.”” Read more for examples and further explanation including related video clips and also comments
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Andrew’s Pitchfork definition explanation

What is Andrew’s Pitchfork?
A technical indicator that uses three parallel trendlines to identify possible levels of support and resistance. The trendlines are created by placing three points at the end of identified trends. This is usually achieved by placing the points in three consecutive peaks or troughs. Once the points have been placed, a straight line is drawn from the first point that intersects the midpoint of the other two.

Also known as “”median line studies””. Read more for examples and further explanation including related video clips and also comments
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American Stock Exchange – AMEX definition explanation

What is American Stock Exchange – AMEX?
The third-largest stock exchange by trading volume in the United States. The AMEX is located in New York City and handles about 10% of all securities traded in the U.S. Read more for examples and further explanation including related video clips and also comments
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Alternative Trading System – ATS definition explanation

What is Alternative Trading System – ATS?
A trading system that is not regulated as an exchange, but is a venue for matching the buy and sell orders of its subscribers. Alternative trading systems are gaining popularity around the world and account for much of the liquidity found in publicly traded issues.

Regulation ATS was introduced by the SEC in 1998 and is designed to protect investors and resolve any concerns arising from this type of trading system. Regulation ATS requires stricter record keeping and demands more intensive reporting on issues such as transparency once the system reaches more than 5% of the trading volume for any given security. Read more for examples and further explanation including related video clips and also comments
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