Glossary · 127 terms
Technical Analysis
All technical analysis terms in the EquitiesIndia.com glossary — plain-English definitions written for Indian retail investors.
Abandoned Baby(Abandoned Baby Bullish)
The Abandoned Baby is a rare three-candle candlestick reversal pattern characterised by a large directional candle, followed by a Doji that gaps away from the prior candle, and completed by a strong opposite-coloured candle that gaps away from the Doji — forming a visual island of isolation.
Acceleration/Deceleration Oscillator(AC Oscillator)
The Acceleration/Deceleration Oscillator (AC), developed by Bill Williams, measures whether the momentum of price movement (captured by the Awesome Oscillator) is accelerating or decelerating, functioning as a leading derivative of the AO signal.
Accumulation/Distribution Line(A/D Line)
The Accumulation/Distribution Line is a volume-weighted indicator developed by Marc Chaikin that uses the relationship between a security's closing price and its intraday high-low range to measure cumulative buying and selling pressure.
Adaptive Moving Average(KAMA)
The Adaptive Moving Average (AMA), developed by Perry Kaufman, is a trend-following indicator that automatically adjusts its sensitivity based on a market efficiency ratio — moving quickly during directional trending conditions and slowly during sideways, noisy markets.
Algorithmic Strategy Types(Algo Strategy Types)
Algorithmic strategy types in equity and derivatives markets encompass distinct approaches including trend following, mean reversion, momentum, statistical arbitrage, and market making — each characterised by a different view of price behaviour and designed to perform well in specific market conditions.
Alligator Indicator(Williams Alligator)
The Alligator Indicator, created by Bill Williams, consists of three smoothed moving averages — the Jaw (13-period, offset 8 bars), the Teeth (8-period, offset 5 bars), and the Lips (5-period, offset 3 bars) — used to identify the presence of a trend and the market's 'sleeping' versus 'waking' state.
Anchored VWAP(AVWAP)
Anchored VWAP is a technical indicator that calculates the Volume-Weighted Average Price from a specific user-defined anchor point — such as an IPO listing date, a major earnings announcement, or a significant price extreme — rather than from the standard start-of-day anchor.
Ascending Triangle(Ascending Triangle pattern)
The Ascending Triangle is a chart pattern defined by a flat horizontal resistance line at a consistent price level and a rising lower trendline connecting progressively higher swing lows, historically observed as a bullish continuation pattern in uptrends and studied as evidence of accumulation building pressure against a fixed resistance level.
ATR(Average True Range)
Average True Range (ATR) measures the average price range of an asset over a specified period, accounting for overnight gaps, making it a measure of market volatility rather than price direction. ATR is used on NSE Nifty and Bank Nifty charts to contextualise the typical daily price movement and to size positions proportionally.
Average Directional Index (ADX)(ADX)
The Average Directional Index (ADX) is a trend-strength indicator developed by J. Welles Wilder that quantifies how strongly a market is trending in either direction, with higher ADX values indicating stronger trends regardless of whether they are upward or downward.
Awesome Oscillator(AO)
The Awesome Oscillator (AO), developed by Bill Williams, measures market momentum by computing the difference between a 5-period and 34-period simple moving average of the midpoint price (median bar price), displayed as a histogram that turns green when rising and red when falling.
Backtesting (Concept)(Historical Strategy Testing)
Backtesting is the process of applying a defined trading strategy to historical price data to evaluate how that strategy would have performed in the past, used as a research tool to assess strategy viability before committing real capital.
Belt Hold(Bullish Belt Hold)
The Belt Hold is a single-candle candlestick pattern where the candle opens at its extreme (the low for a Bullish Belt Hold or the high for a Bearish Belt Hold) with no shadow on that side, historically interpreted as a potential trend reversal signal reflecting decisive directional intent from the opening price.
Bollinger Bands(BB)
Bollinger Bands consist of a simple moving average flanked by upper and lower bands set two standard deviations above and below the SMA. They expand during periods of high volatility and contract during low-volatility periods, providing a dynamic range context for price movement on Nifty and Bank Nifty charts.
Break of Structure (BOS)(BOS)
In Smart Money Concept and market structure analysis, a Break of Structure occurs when price closes beyond a prior significant swing high (in an uptrend) or swing low (in a downtrend), confirming continuation of the existing trend structure.
Breakaway Gap(Breakaway Gap pattern)
A Breakaway Gap is a price gap that forms as price leaves a consolidation range, base, or well-defined chart pattern, historically observed at the beginning of a new trend phase and studied as one of the higher-conviction gap types because it typically occurs on significantly elevated volume.
Candlestick(Japanese Candlestick)
A candlestick is a price chart element that represents the open, high, low, and close of a security for a given time period, using a filled body for the open-close range and wicks for the high and low extremes. Candlestick charting, originating in Japan, is the dominant chart type used on Indian equity and F&O trading platforms.
Chandelier Exit(Chandelier Stop)
The Chandelier Exit is an ATR-based trailing stop-loss indicator developed by Chuck LeBeau that hangs a stop price a fixed number of ATR multiples below the highest high (for long positions) or above the lowest low (for short positions) reached since trade entry.
Change of Character (CHoCH)(CHoCH)
In Smart Money Concept analysis, a Change of Character is the first violation of existing trend structure — when price closes beyond a prior opposing swing point — signalling a potential shift from bullish to bearish conditions, or vice versa.
Channel Trading(Price Channel)
Channel Trading is a technical analysis technique where price action is defined by two parallel trendlines — a channel line and a base trendline — creating a bounded range within which historical price oscillations have occurred and from which measured move projections can be derived.
Chart Timeframe Selection(Multiple Timeframe Analysis)
Chart timeframe selection in technical analysis is the process of choosing the appropriate price chart interval — from 1-minute intraday charts through weekly and monthly charts — based on trading style, holding period, and the analytical purpose of the chart.
Choppiness Index(CHOP)
The Choppiness Index (CHOP) is an indicator developed by E.W. Dreiss that measures the degree of trendiness versus choppiness in a market on a scale of 0 to 100, where high values (above 61.8) indicate a sideways, non-trending market and low values (below 38.2) indicate a strongly trending market.
Commodity Channel Index (CCI)(CCI)
The Commodity Channel Index (CCI) is a momentum oscillator developed by Donald Lambert that measures how far a security's typical price has deviated from its statistical mean, identifying overbought conditions, oversold conditions, and emerging trends.
Cumulative Delta(CD)
Cumulative Delta is an order flow indicator that tracks the running net difference between buying volume (trades executed at the ask) and selling volume (trades executed at the bid) over a defined period, providing insight into whether buyers or sellers have been more aggressive in a given price move.
Cup and Handle(Cup with Handle)
The Cup and Handle is a chart pattern described by William O'Neil in which price traces a rounded U-shaped decline and recovery (the cup) followed by a brief consolidation with a slight downward drift (the handle), historically observed as a continuation pattern within an uptrend after a period of correction and base-building.
Dark Cloud Cover(Dark Cloud Cover candle)
Dark Cloud Cover is a two-candle bearish reversal pattern where a large bullish candle is followed by a bearish candle that opens above the prior close and then closes well into — at least halfway through — the body of the prior bullish candle, historically observed at price highs as a sign of potential reversal.
Death Cross(Bear Cross)
A Death Cross occurs when a shorter-period moving average crosses below a longer-period moving average — typically the 50-day SMA crossing below the 200-day SMA. On Nifty 50 charts, this event has historically been cited as a bearish structural development by Indian market analysts.
Descending Triangle(Descending Triangle pattern)
The Descending Triangle is a chart pattern defined by a flat horizontal support line at a consistent price level and a falling upper trendline connecting progressively lower swing highs, historically observed as a bearish continuation pattern in downtrends and studied as evidence of distribution building pressure against a fixed support level.
Divergence (RSI/MACD)(RSI divergence)
A technical condition where the direction of a price move and the corresponding direction of an oscillator such as RSI or MACD diverge from each other, historically associated with weakening momentum and potential trend reversals.
Doji
A doji is a candlestick pattern where the open and close prices are virtually equal, resulting in a very small or absent body with wicks extending above and below. It reflects indecision between buyers and sellers and is observed frequently on Nifty 50 and Bank Nifty intraday and daily charts.
Donchian Channel(Donchian Channels)
A Donchian Channel is a trend-following indicator developed by Richard Donchian that plots the highest high and lowest low over a specified look-back period as an upper and lower band, with the midline representing their average.
Double Bottom
A Double Bottom is a bullish reversal chart pattern where an asset's price reaches a similar low on two separate occasions with a moderate rally between them, suggesting that declining pressure failed to push prices lower on the second attempt. It has been observed on Nifty 50 and Bank Nifty charts at historically significant lows.
Double Top
A Double Top is a bearish reversal chart pattern where an asset's price reaches a similar high on two separate occasions, separated by a moderate pullback, suggesting that upward momentum failed to sustain beyond that level on the second attempt. This pattern has been observed historically on Nifty 50 and individual stock charts in India.
Dragonfly Doji(Dragonfly Doji Candlestick)
The Dragonfly Doji is a Doji candlestick variant with a very long lower shadow and virtually no upper shadow, historically observed at potential market bottoms and interpreted as a sign that sellers drove prices significantly lower during the session but buyers ultimately reclaimed the opening price level.
Elder Ray Index(Bull Power)
The Elder Ray Index is a momentum indicator developed by Dr. Alexander Elder that measures the power of bulls and bears in the market by calculating the difference between a 13-period EMA and the period's high (Bull Power) and between the EMA and the period's low (Bear Power).
Elliott Wave Theory(EWT)
Elliott Wave Theory, proposed by Ralph Nelson Elliott in the 1930s, holds that market prices move in recognisable fractal patterns — five-wave impulse sequences in the direction of the dominant trend and three-wave corrective sequences against it — governed by Fibonacci ratios.
EMA(Exponential Moving Average)
The Exponential Moving Average (EMA) applies progressively greater weight to recent prices, making it more responsive to new market information than the SMA. The 20-day and 50-day EMAs are commonly used in technical analysis of Nifty 50 and Bank Nifty charts.
Engulfing Pattern(Bullish Engulfing)
The Engulfing Pattern is a two-candle reversal formation where the second candle's real body completely engulfs the first candle's body — the Bullish Engulfing appears near price lows (a large bullish candle engulfs a prior bearish candle) while the Bearish Engulfing appears near price highs (a large bearish candle engulfs a prior bullish candle), both historically studied as potential signs of a decisive shift in the balance between buyers and sellers.
Evening Star(Evening Star candle)
The Evening Star is a three-candle bearish reversal formation consisting of a long bullish candle, a small-bodied candle that gaps higher, and a large bearish candle that closes well into the body of the first candle, historically observed near price peaks and studied as evidence of a potential transition from bullish to bearish control.
Exhaustion Gap(Exhaustion Gap pattern)
An Exhaustion Gap is a price gap that appears near the end of a prolonged trend, reflecting a final burst of directional momentum that is typically followed by a reversal or significant pullback, historically studied as one of the gap types most likely to be filled quickly as the trend it accompanies reaches terminal velocity.
Fair Value Gap (FVG)(FVG)
A three-candle price pattern where the wicks of the first and third candles do not overlap, leaving a price gap (imbalance) on the chart that represents an area of inefficient price delivery, often revisited by the market as it seeks to fill the imbalance.
Fibonacci Extension(Fibonacci Projection)
Fibonacci extensions are price projection levels derived from Fibonacci ratios applied beyond the 100 percent retracement of a prior swing, used to identify potential price targets in a trending move that has exceeded the starting point of its base swing.
Fibonacci Retracement(Fib Retracement)
Fibonacci Retracement is a technical analysis tool that identifies potential support and resistance levels by applying key ratios derived from the Fibonacci sequence — primarily 23.6%, 38.2%, 50%, 61.8%, and 78.6% — to a prior significant price move. These levels are widely plotted on Nifty 50 and Bank Nifty charts by Indian technical analysts.
Flag Pattern(Bull Flag)
The Flag Pattern is a short-term continuation chart formation consisting of a sharp, nearly vertical price move (the flagpole) followed by a brief rectangular consolidation that drifts in the opposite direction to the pole (the flag), historically observed as a pause within a strong trend before the prior directional move was resumed.
Footprint Chart(Footprint Candlestick)
A Footprint Chart is an advanced order flow visualisation tool that displays the volume of transactions at the bid and ask price for every individual price level within each candle, revealing the precise location where buyers and sellers were most active within a given time period.
Forward Testing (Paper Trading)(Paper Trading)
Forward testing, commonly called paper trading, is the practice of simulating trades in real time using live market data without committing actual capital, allowing a trader to validate a strategy in current market conditions before transitioning to live trading.
Fractal Indicator(Williams Fractal)
The Fractal Indicator, developed by Bill Williams, identifies local turning points in price by marking bars where a high or low is the extreme of a five-bar sequence — two bars with lower highs on each side for an up fractal, or two bars with higher lows on each side for a down fractal.
Gann Fan(Gann Angles)
A Gann Fan is a technical analysis tool developed by W.D. Gann consisting of a series of diagonal lines emanating from a significant price pivot, each representing a different rate of price ascent or descent expressed as a price-per-time ratio, with the 1x1 (45-degree) line considered the most important.
Gann Theory(W.D. Gann)
Gann Theory is a market analysis approach developed by W.D. Gann that uses geometric angles, price-time relationships, and natural cycle lengths to forecast future price movements and identify significant support and resistance levels.
Gap Down
A gap down occurs when a security's opening price is lower than the previous session's low, leaving a visible void on the chart. On NSE, gap downs in Nifty and Bank Nifty are common following adverse global market sessions, negative domestic macro announcements, or significant company-specific negative news for individual stocks.
Gap Up
A gap up occurs when a security's opening price is higher than the previous session's high, leaving a visible price gap on the chart where no trading occurred. On NSE, gap ups in Nifty and Bank Nifty futures frequently reflect overnight developments in global markets or significant domestic news events.
Golden Cross(Bull Cross)
A Golden Cross occurs when a shorter-period moving average crosses above a longer-period moving average — most commonly the 50-day SMA crossing above the 200-day SMA. This event on Nifty 50 charts has historically been discussed in Indian financial media as a longer-term bullish structural observation.
Gravestone Doji(Gravestone Doji Candlestick)
The Gravestone Doji is a Doji candlestick variant with a very long upper shadow and virtually no lower shadow, historically observed at potential market tops and interpreted as evidence that buyers initially drove prices significantly higher but were completely overwhelmed by sellers before the session closed.
Hammer
A hammer is a candlestick pattern with a small body at the upper end of the trading range and a long lower wick at least twice the length of the body, suggesting that a significant intraday decline was rejected and prices recovered to close near the high. It has been observed on Nifty and individual stock charts as a historically notable pattern at potential lows.
Hanging Man(Hanging Man candle)
The Hanging Man is a single-candle formation with a small real body near the session high, a long lower shadow at least twice the length of the body, and little to no upper shadow, historically observed at the upper end of price advances and studied as a potential sign that selling pressure is beginning to emerge beneath current prices.
Harami Pattern (Bullish/Bearish)(Bullish Harami)
The Harami is a two-candle candlestick pattern where a large candle is followed by a smaller candle whose body is completely contained within the prior candle's body, historically signalling indecision and a potential pause or reversal in the prevailing trend.
Harmonic Patterns(Harmonic Trading)
Harmonic Patterns are price chart formations defined by specific Fibonacci ratio relationships between their swing points, including the Gartley, Butterfly, Bat, and Crab patterns, that signal high-probability reversal zones where price is expected to change direction.
Head and Shoulders(H&S)
The Head and Shoulders is a chart pattern comprising three successive peaks — a central peak (head) higher than the two flanking peaks (shoulders) — with a neckline connecting the troughs between them. On Nifty 50 and large-cap stock charts, this pattern has been historically associated with observations of potential trend reversal from uptrend to downtrend.
Heikin-Ashi(Heiken-Ashi)
Heikin-Ashi is a Japanese charting technique that uses modified candlestick values calculated from averaged price data to smooth out price noise and make trend direction and reversals easier to identify visually.
High Wave Candle(High Wave Candlestick)
The High Wave Candle is a candlestick pattern characterised by a very small real body with exceptionally long upper and lower shadows on both sides, historically associated with extreme indecision and market uncertainty at potential turning points or within consolidation zones.
Ichimoku Cloud(Ichimoku Kinko Hyo)
The Ichimoku Cloud is a comprehensive Japanese charting system that defines support, resistance, trend direction, and momentum through five lines and a shaded cloud region drawn directly on the price chart.
Intermarket Analysis(Cross-Market Analysis)
Intermarket Analysis is the study of the relationships between equities, bonds, commodities, and currencies to forecast market trends, with the premise that all four asset classes are interlinked and that price movements in one lead or confirm movements in the others.
Inverted Hammer(Inverted Hammer candle)
The Inverted Hammer is a single-candle formation with a small real body near the session low, a long upper shadow at least twice the length of the body, and little to no lower shadow, historically observed at the lower end of price declines and studied as a potential sign that buyers attempted an upward thrust, which may set the stage for a recovery.
Island Reversal(Island Reversal pattern)
An Island Reversal is a chart pattern in which a cluster of price action becomes isolated from surrounding price bars by two gaps — one gap separating the island cluster from prior price action and a second gap in the opposite direction separating it from subsequent price action — historically observed as a sign of sharp, decisive reversal of the prior trend.
Keltner Channel(Keltner Bands)
Keltner Channels are a volatility-based technical indicator that plots bands above and below an exponential moving average using a multiple of the Average True Range, creating an envelope that adapts dynamically to market volatility.
Kicker Pattern(Bullish Kicker)
The Kicker Pattern is a two-candle candlestick signal regarded as one of the strongest reversal formations, occurring when a candle in the direction of the current trend is immediately followed by an opposite-coloured candle that gaps open in the reverse direction, completely negating the prior candle's signal.
Liquidity Sweep(stop hunt)
A price movement in which the market briefly penetrates a well-known level where stop-loss orders are clustered — such as a prior high or low — triggering those stops before reversing, commonly described as a stop hunt or false breakout.
MACD(Moving Average Convergence Divergence)
MACD (Moving Average Convergence Divergence) is a trend-following momentum indicator that plots the difference between a 12-period EMA and a 26-period EMA, with a 9-period EMA of that difference serving as the signal line. It is one of the most frequently referenced indicators on Nifty and Bank Nifty charts in India.
Market Facilitation Index(Williams MFI)
The Market Facilitation Index (MFI), developed by Bill Williams, measures the price movement per unit of volume, indicating how efficiently the market is facilitating price change and whether market participants are committed to the current move.
Market Profile(TPO Chart)
Market Profile is a charting methodology developed by J.P. Steidlmayer that organises price and time into Time Price Opportunity (TPO) distributions, revealing the market's auction structure over a session.
Market Regime Detection(Regime Filter)
Market regime detection is the process of classifying the current market environment as trending, ranging, or high-volatility using quantitative tools such as the ADX, choppiness index, or volatility measures, to align strategy selection with prevailing market conditions.
Marubozu(Marubozu candle)
A Marubozu is a candlestick with a full or near-full body and no shadows (or extremely minimal shadows), indicating that price moved from open to close in one direction without significant retracement, and historically studied as evidence of dominant directional conviction during the session.
Money Flow Index(MFI)
The Money Flow Index (MFI) is a volume-weighted momentum oscillator that incorporates both price and volume to measure the strength of money flowing into and out of a security, producing readings between 0 and 100.
Morning Star(Morning Star candle)
The Morning Star is a three-candle bullish reversal formation consisting of a long bearish candle, a small-bodied candle that gaps lower, and a large bullish candle that closes well into the body of the first candle, historically observed near price troughs and studied as evidence of a potential shift from bearish to bullish control.
Moving Average(MA)
A moving average is a continuously updated average of a security's price over a defined lookback period, used to smooth out short-term fluctuations and identify the prevailing trend direction. Moving averages are among the most widely referenced indicators on Nifty 50 and Bank Nifty price charts.
Moving Average Crossover Strategy(MA crossover)
A rules-based technical strategy that generates entry and exit signals when a shorter-period moving average crosses above or below a longer-period moving average, providing a systematic, objective approach to identifying trend changes.
Multiple Time Frame Analysis(MTF analysis)
A top-down analytical approach that examines charts across three or more time frames — such as weekly, daily, and hourly — to align higher-timeframe trend direction with lower-timeframe entry timing, reducing the risk of trading against the dominant structure.
Murrey Math Lines(MML)
Murrey Math Lines are a set of horizontal support and resistance levels developed by T.H. Murrey, based on dividing price ranges into octaves of eight equal parts, with each line assigned a specific behavioural description relating to how price has historically interacted with it.
On-Balance Volume (OBV)(OBV)
On-Balance Volume (OBV) is a cumulative volume-based indicator developed by Joseph Granville that adds volume on up-days and subtracts it on down-days to measure the flow of buying and selling pressure in a security.
Order Block(OB)
In Smart Money Concept (SMC) analysis, an order block is the last opposing candle before a significant impulsive price move, representing the price area where institutional entities placed large directional orders, expected to be revisited as a support or resistance zone.
Order Flow Analysis(Order Flow Trading)
Order Flow Analysis is the study of real-time buy and sell orders entering the market — including the bid-ask spread dynamics, trade size distribution, and aggressive versus passive order behaviour — to infer the immediate directional pressure on price.
Overbought
Overbought describes a condition where a security's price has risen rapidly to a level that may not be sustainable in the near term, as indicated by momentum oscillators such as RSI or Stochastics exceeding defined thresholds. On NSE charts, overbought readings in Nifty or Bank Nifty were noted as suggesting extended near-term momentum.
Oversold
Oversold describes a condition where a security's price has declined rapidly to a level suggesting the pace of selling may have been excessive in the near term, as indicated by momentum oscillators such as RSI falling below 30 or Stochastics dropping below 20. On NSE charts, oversold readings in Nifty and individual stocks were noted as potential near-term stabilisation indicators.
Parabolic SAR(SAR)
Parabolic SAR (Stop and Reverse) is a trend-following indicator developed by J. Welles Wilder that places dots above or below price to indicate the potential direction of price movement and dynamic trailing stop levels.
Pennant(Pennant pattern)
A Pennant is a short-term continuation chart pattern consisting of a sharp directional price move (the flagpole) followed by a brief symmetrical triangular consolidation where price converges between converging support and resistance lines, historically observed as a brief pause in a strong trend before directional continuation.
Piercing Pattern(Piercing Line)
The Piercing Pattern is a two-candle bullish reversal formation where a large bearish candle is followed by a bullish candle that opens below the prior close and then closes above the midpoint of the prior bearish candle's body, historically observed after a decline and studied as a potential sign of buying interest absorbing prior selling.
Pivot Points(Floor Pivots)
Pivot Points are calculated support and resistance levels derived from the previous session's high, low, and close. They are widely used by intraday traders of Nifty futures, Bank Nifty options, and large-cap NSE stocks as pre-calculated reference zones for the trading day.
Point and Figure Chart(P&F Chart)
A Point and Figure (P&F) Chart is a price-only charting method that records upward price movements as columns of X marks and downward movements as columns of O marks, using a fixed box size and reversal amount, with no time axis, to filter noise and highlight pure price trends.
Position Sizing Methods(Trade Sizing)
Position sizing methods are systematic frameworks for determining how much capital to allocate to each trade — including fixed fraction, the Kelly Criterion, and ATR-based sizing — to manage overall portfolio risk and avoid single-trade outcomes that significantly damage the account.
Price Action Trading(PA trading)
A trading methodology that relies solely on the analysis of raw price movement — candlestick patterns, support and resistance levels, highs and lows, and volume — without the use of lagging mathematical indicators.
Price Action vs Indicator-Based Analysis(Pure Price Action)
Price action analysis and indicator-based analysis represent two schools within technical analysis — price action traders rely solely on raw OHLC data and chart structure, while indicator-based traders supplement price data with derived mathematical signals such as RSI, MACD, or Bollinger Bands.
Rate of Change(ROC)
The Rate of Change (ROC) is a momentum oscillator that measures the percentage change in price over a specified number of periods, indicating the speed at which a security's price is moving relative to its past level.
Relative Rotation Graph(RRG Chart)
A Relative Rotation Graph (RRG) is a charting tool developed by Julius de Kempenaer that plots the relative strength and momentum of multiple securities or sectors against a common benchmark simultaneously, using JdK RS-Ratio and RS-Momentum axes to classify each into one of four rotational quadrants.
Relative Strength (Stock vs Index)(RS line)
A measure of a stock's price performance relative to a benchmark index such as Nifty 50, used to identify securities that are outperforming or underperforming the broader market on a sustained basis.
Relative Vigor Index(RVI)
The Relative Vigor Index (RVI) is a momentum oscillator developed by John Ehlers that measures the vigor of a price move by comparing the closing price to the opening price relative to the day's trading range, on the premise that prices tend to close higher than they open in uptrends.
Renko Chart(Renko)
A Renko Chart is a price-only charting method of Japanese origin that records price movement as fixed-size bricks — each new brick forming only when price moves by the predetermined brick size — eliminating time and minor fluctuations to display trend direction with exceptional clarity.
Resistance
Resistance is a historical price level at which a rising security has previously encountered supply sufficient to halt or reverse the upward move. On Nifty 50 and Bank Nifty charts, resistance zones are observed where price has repeatedly stalled or reversed during rallies.
Risk-Reward Ratio (Trading)(R:R Ratio)
The risk-reward ratio in trading is the relationship between the maximum planned loss on a trade (risk) and the potential gain targeted (reward), expressed as a ratio, used to evaluate whether a trade setup offers sufficient upside relative to the downside being accepted.
Rounding Bottom(Saucer Bottom)
The Rounding Bottom is a long-duration chart pattern characterised by a gradual, arc-shaped price decline followed by an equally gradual, arc-shaped recovery that traces a smooth curve resembling the bottom of a bowl, historically observed as a major reversal formation suggesting slow but sustained accumulation over an extended period.
RSI(Relative Strength Index)
The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and magnitude of recent price changes to evaluate whether a security is in overbought or oversold territory. It ranges from 0 to 100 and is one of the most widely used technical indicators on Indian equity and F&O charts.
Shooting Star(Shooting Star candle)
The Shooting Star is a single-candle formation with a small real body near the session low, a long upper shadow at least twice the length of the body, and little to no lower shadow, historically observed at the upper end of price advances and studied as a potential sign of waning upward momentum.
SMA(Simple Moving Average)
The Simple Moving Average (SMA) is the arithmetic mean of a security's closing prices over a specified number of periods. The 50-day and 200-day SMAs of Nifty 50 have historically been referenced as key trend benchmarks by Indian market participants.
Spinning Top(Spinning Top candle)
A Spinning Top is a candlestick with a small real body and long upper and lower shadows of roughly equal length, reflecting a session in which neither buyers nor sellers gained a decisive advantage, and historically studied as a sign of indecision or equilibrium between supply and demand.
Stochastic Oscillator(Stochastic)
The Stochastic Oscillator is a momentum indicator developed by George Lane that compares a security's closing price to its price range over a given look-back period, producing values between 0 and 100 that signal overbought and oversold conditions.
Supertrend Indicator(Supertrend)
A trend-following overlay indicator derived from Average True Range and a multiplier that plots a dynamic stop-and-reverse line on the price chart, widely used in Indian equity and F&O markets to identify directional bias.
Supply and Demand Zones(S&D zones)
Price areas on a chart where historically significant institutional order flow caused sharp directional moves away from that zone, identifying potential future areas of interest where price may react again upon return.
Support
Support is a historical price level at which a declining security has previously found demand sufficient to halt or reverse the downward move. In technical analysis of Nifty 50 and Bank Nifty charts, support levels are observed zones where price has historically paused or reversed after falling.
Symmetrical Triangle(Symmetrical Triangle pattern)
A Symmetrical Triangle is a chart pattern defined by a falling upper trendline connecting lower swing highs and a rising lower trendline connecting higher swing lows, creating a converging formation that historically indicated equilibrium between buyers and sellers ahead of a potential directional breakout.
Technical Analysis Limitations
Technical analysis limitations encompass the structural weaknesses of chart-based analysis — including false signals, hindsight bias, curve fitting, self-referential behaviour, and the challenge of applying historical patterns to fundamentally changed market structures.
Technical vs Fundamental Analysis
Technical and fundamental analysis represent two distinct frameworks for evaluating securities — fundamental analysis assesses intrinsic value through financial metrics and business quality, while technical analysis studies price and volume patterns to identify likely future price behaviour — and many practitioners use them as complementary rather than competing tools.
Three Black Crows(Three Black Crows candle)
Three Black Crows is a three-candle bearish reversal formation consisting of three consecutive large bearish candles, each opening within the prior candle's body and closing progressively lower, historically observed after a sustained advance and studied as a sign of sustained and organised selling pressure.
Three Inside Up / Three Inside Down(Three Inside Up)
The Three Inside Up and Three Inside Down are three-candle candlestick reversal patterns that historically have appeared at the end of trends, with the first two candles forming a Harami and the third candle confirming the directional change.
Three Line Strike(Bullish Three Line Strike)
The Three Line Strike is a four-candle candlestick continuation pattern where three consecutive candles in the direction of the prevailing trend are followed by a single large candle in the opposite direction that completely engulfs all three prior candles, historically associated with temporary counter-trend pullbacks before trend resumption.
Three White Soldiers(Three White Soldiers candle)
Three White Soldiers is a three-candle bullish continuation or reversal formation consisting of three consecutive large bullish candles, each opening within the prior candle's body and closing progressively higher, historically observed as evidence of sustained and orderly buying pressure following a decline.
Tick Chart(Transaction Chart)
A Tick Chart is a chart type where each bar or candle forms after a specified number of individual trades (ticks) have occurred, rather than after a fixed time period, making it uniquely sensitive to trading activity levels and particularly useful for intraday scalping in fast-moving markets.
Trading Journal
A trading journal is a systematic log of all trades taken — recording entry and exit details, the rationale behind each trade, the market context at the time, and the emotional state of the trader — used as a performance review and self-improvement tool.
Trailing Stop Methods(Trailing Stop-Loss)
Trailing stop methods are dynamic stop-loss techniques that move the exit level in the direction of a profitable trade to lock in gains progressively, while still allowing the trade room to continue developing in the favoured direction.
Trendline
A trendline is a straight line drawn on a price chart connecting a series of successive highs or lows to visually represent the direction and pace of a price trend. Trendlines on Nifty 50 and Bank Nifty charts have been used historically to identify the slope and boundaries of prevailing trends.
Tweezer Bottom(Tweezer Bottom candle)
A Tweezer Bottom is a two-candle formation where two consecutive sessions reach virtually the same low price, historically observed near the lower end of a decline and studied as a potential sign that support has been identified as sellers failed to push price below the matching low on two separate attempts.
Tweezer Top(Tweezer Top candle)
A Tweezer Top is a two-candle formation where two consecutive sessions reach virtually the same high price — one from a bullish candle and the next from a bearish candle — creating a twin-peak structure that historically indicated resistance at that high price level and was studied as a potential sign of a short-term reversal.
Volume Profile(VP)
Volume Profile is a charting technique that plots traded volume at each price level over a specified period, revealing where the market spent the most time and transacted the most contracts.
Volume Spread Analysis(VSA)
Volume Spread Analysis (VSA) is a market analysis methodology, popularised by Tom Williams, that studies the relationship between the price spread of a bar, the closing position within that spread, and the accompanying volume to distinguish professional accumulation or distribution from retail-driven price action.
Volume Weighted Moving Average(VWMA)
The Volume Weighted Moving Average (VWMA) is a moving average that incorporates trading volume as a weighting factor, giving greater influence to price levels where higher volume was transacted and less weight to prices accompanied by low volume.
VWAP(Volume Weighted Average Price)
VWAP (Volume Weighted Average Price) is the average price at which a security has traded throughout the day, weighted by the volume transacted at each price level. On NSE, VWAP is a key reference for institutional order execution and is widely monitored by intraday traders of Nifty futures and large-cap stocks.
Wedge Pattern(Rising Wedge)
A Wedge is a chart pattern defined by two converging trendlines that slope in the same direction — either both upward (Rising Wedge) or both downward (Falling Wedge) — forming a narrowing price channel, historically observed as a reversal pattern when slope direction conflicts with the prior trend and as a continuation pattern when aligned with it.
Williams %R(%R)
Williams %R is a momentum oscillator developed by Larry Williams that measures the current closing price relative to the highest high over a look-back period, producing values between −100 and 0 to identify overbought and oversold conditions.
Wyckoff Method(Wyckoff Analysis)
The Wyckoff Method is a market analysis framework developed by Richard D. Wyckoff in the early twentieth century that interprets price and volume action in terms of four repeating phases — accumulation, markup, distribution, and markdown — driven by the behaviour of large institutional operators.