Below is the
precise compilation of some of the stock market related technical terms
explained in simple vocabulary.
SUPPORT LEVEL
A chart point or range at which the stock price finds difficulty in falling below. Generally a
lot of buyers enter the market at this level. It is the level at which the
stock prices would be minimal.
RESISTANCE LEVEL
A chart point or range at which an increase in the level of a stock or
index over a period of time is observed. An area of resistance or resistance
level indicates that the stock or index is finding it tough to break through
it, and may head lower in the near
term. The more times that the stock or index has tried
unsuccessfully to break through the resistance level, the more formidable that
area of resistance becomes.
VOLUME
The number of shares or contracts traded in a security or an entire
market during a given period of time. It is simply the amount of shares that
trade hands from sellers to buyers as a measure of activity. If a buyer of a
stock buys 100 shares from a seller, then the volume for that
period increases by 100 shares based on that transaction.
BREAKOUT
It is a price fluctuation observed through a recognized level of support
or resistance, which is usually followed by heavy volume and increased volatility. Traders will buy the underlying
asset when the price breaks above
a level of resistance and sell when it breaks below support.
Hope it will be useful for beginners who wants to analysis the share market forecasts.
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