Glossary

When the current price of the underlying security is below the current strike price of the option.

A daily bar chart pattern where the security’s high is higher than the previous trading day.

Securities that are traded in a medium (such as a Dealer Network) other than a formal exchange.

An occurrence where a market’s prices are unjustifiably high due to extensive demand (buying).

A technical analysis decision support tool that identifies when prices for a financial asset have moved too far and/or too fast in either direction. It is calculated through the use of a moving average applied to the difference between advancing and declining issues.

Trading positions that are held overnight, remaining open until the next trading day.

An occurrence where a market’s price has fallen sharply, where the decline exceeds the level of it’s true value.

Stated value or face value of a bond.

Designed by Welles Wilder, this lagging indicator employs a "stop and reverse" strategy through the use of Trailing Stops and identifying a Trend Reversal.

Graphic formations of a financial instrument’s price movements on a chart.