Levels & Patterns
Where price tends to react. These terms cover support and resistance, breakouts and the ways they fail, the classic chart patterns, and the Fibonacci tools used to judge pullbacks and targets.
17
terms in this topic
5
with a chart or figure
17
taught in an Academy lesson
12
other topics
17 terms, A to Z
- 8beginner
- 9intermediate
- BreakoutPrice closing beyond a level or pattern, ideally on strong volume, and staying there.
- Demand zoneThe base price left in a hurry before a strong rally (a supply zone is the base before a strong drop).
- Double topTwo failed attempts at the same high, completed by a close below the low between them (the neckline).
- FakeoutA break of a level that fails and falls back inside, trapping breakout traders.
- Fibonacci extensionLevels beyond the old high (127.2%, 161.8%) used to estimate targets for the next leg.
- Fibonacci retracementLevels at 23.6%, 38.2%, 50%, 61.8% and 78.6% of a move, used to judge how deep a pullback might go.
- FlagA small channel sloping against a sharp move (the pole), usually followed by continuation.
- Head and shouldersThree peaks with the middle one highest; a close through the neckline completes the reversal.
- Measured moveA rough target that projects a pattern's height from its breakout point.
- ResistanceA price area where rising prices have stopped before, because sellers stepped in.
- RetestPrice returning to a level it just broke, often to test it from the other side.
- Role reversalBroken resistance becoming support (or broken support becoming resistance).
- Round numberPrices like 1.1000 or 100,000 where orders cluster, so they act like support and resistance.
- SupportA price area where falling prices have stopped before, because buyers stepped in.
- TrendlineA line joining swing lows in an uptrend (or highs in a downtrend); a parallel line makes a channel.
- TrianglePrice squeezing between two converging lines until it breaks out.
- WedgeTwo converging lines sloping the same way; rising wedges often break down, falling wedges often break up.