| Tail: |
A new high bar that opens and closes near its low, or a new low bar that opens and closes near its high. |
| Technical
Analysis: |
An approach to analysis of futures markets which examines patterns of price change, rates of change, and changes in volume of trading, open interest and other statistical indicators. See also Charting. |
| Theta: |
This
is the daily drop in dollar value of an option due to the affect of
time alone. Theta is dollars
lost per day per contract. Negative
theta signifies long option positions or debit spreads; positive theta
signifies short options or credit spreads. |
| The
"Turk" |
A
reference to what appears to be a calculated market stabilizing action
by the Federal Reserve or its appointed ally, such as large broker-dealers
who do program trading and are active in the futures. The Turk has had
a tendency to "save the day" during many potential crisis
occasions, such as when it looks like the market is about to crash.
|
| Tick: |
A
"tick" is the minimum price increment a stock, future, or
option can trade in. For example, in a stock that trades in minimum
increments of 1/16th of a point, a move of 1/16 up or down would be
a one-tick move. In the S&P 500 futures, a tick is .10, in crude
oil futures, a tick is .01, and so on. |
| TICK
Indicator: |
The
TICK indicator measures the difference between the number of up-ticking
NYSE stocks vs. the number of down-ticking NYSE stocks throughout the
day. (Do not confuse with the term "tick," used to describe
a minimum price fluctuation.) |
| Time
Spreads: |
A
long time spread is created by selling a near term option and by buying
a longer term option. Both
options are on the same underlying asset, are of the same type, and
have the same exercise price. |
| Time
Value: |
This
is the amount that the premium of an option exceeds its intrinsic value.
If an option is out-of-the-money then its entire premium consists
of time value. |
| Trading
Range: |
Non-trending,
sideways price action with fairly defined upper and lower boundaries.
|
| Trailing
Stop: |
A
stop order that is raised (in a rising market) or lowered (in a declining
market) to follow an open position and lock in profits. |
| Trendline: |
A
straight line defining a price trend. Up trendlines connect the lows
of several price bars while down trendlines connect the highs of price
bars. |
| Triangle: |
A
longer-term (approximately a month or more on a daily chart) consolidation/continuation
pattern in which prices progressively converge in a series of lower
highs and higher lows. |
| TRIN: |
The
TRIN indicator compares advancing issues/declining issues to the up
volume/down volume ratio. |
| Triple
Bottom: |
A
reversal pattern consisting of three price troughs at roughly the same
price level. The implication is that by failing to move through such
levels after three attempts, the market is meeting significant support
and could reverse. See also "triple top," "double bottom,"
double top." |
| Triple
Top: |
A
reversal pattern consisting of three price peaks at roughly the same
price level. The implication is that by failing to move through such
levels after three attempts, the market is meeting significant resistance
and could reverse. See also Double Top. |
| True
Range: |
A
volatility calculation developed by Welles Wilder that modifies the
standard range calculation by accounting for gaps between price bars.
True Range is defined as the largest value (in absolute terms) of:
1. today's
high and today's low (the standard daily range calculation); 2. today's
high and yesterday's close; 3. today's
low and yesterday's close. Average
True Range (ATR) is simply a moving average of true range calculated
over N days. True range
and average true range are common volatility measurements. |
| Two-step
Pullback: |
A
combination of two pullbacks, where the second pullback tests the level
of the first pullback. See Pullback. |
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