Resistance
Technical analysisA price zone where selling interest has repeatedly been sufficient to halt advances.
In plain terms
A ceiling made of the same memory, working in the opposite direction.
1492 terms
Glossary
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
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Breakout
Technical analysisA decisive close beyond an established support or resistance level.
In plain terms
Only credible with a volume surge. Without one it is usually a trap.
Ichimoku
Technical analysisAlso called: Ichimoku Kinko Hyo
A Japanese trend system of five lines, including a forward-projected cloud of support and resistance.
In plain terms
Looks like the busiest indicator on the screen and is really one midpoint calculation at four speeds. Above the cloud is up, below is down, inside is no-trade.
Role reversal
Technical analysisThe tendency of broken resistance to act as support afterwards, and vice versa.
In plain terms
Everyone who sold at ₹400 and watched it run to ₹450 will buy on a return to ₹400.
SuperTrend
Technical analysisAn ATR-based trailing indicator that flips between acting as support and resistance.
In plain terms
Very popular with Indian intraday traders. A trend-follower, so it whipsaws in ranges.
Throwback
Technical analysisPrice breaking a channel rail and then returning to it from the other side, so that old support acts as resistance.
In plain terms
Often the cleanest short entry a channel offers, because the invalidation sits just beyond the rail rather than far away.
Break-even level
Technical analysisThe price at which participants who bought since a reference point are collectively flat.
In plain terms
Underwater holders sell into the first rally back to their cost. That is what creates resistance there.
Double top
Technical analysisA reversal pattern where price fails twice at the same level, confirmed only when the low between the two peaks breaks.
In plain terms
Calling it while price is still approaching an old high is one of the more reliable ways to short a strong uptrend. Until the intervening low goes, this is a test of resistance.
Gap
Technical analysisA price range in which no trading occurred, leaving a blank strip between one session and the next.
In plain terms
Nobody holds a position inside a gap, which is exactly why it later acts as support or resistance.
Option chain
DerivativesThe strike-by-strike table of open interest, change in open interest, volume and implied volatility for an underlying's options, published live and free by the NSE.
In plain terms
The strike with the largest call open interest often acts as resistance and the largest put strike as support, because writers hedging those positions generate real buying and selling. One source of confluence, not a forecast.