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  • 📋ChartSchool
  • Table of Contents
    • Overview
      • Why Analyze Securities?
      • Technical Analysis
      • Fundamental Analysis
      • Random Walk vs. Non-Random Walk
      • Asset Allocation and Diversification
      • John Murphy's 10 Laws of Technical Trading
      • John Murphy's "Charting Made Easy" eBook
      • Technical Analysis 101
        • TA 101 – Part 1
        • TA 101 – Part 2
        • TA 101 – Part 3
        • TA 101 – Part 4
        • TA 101 – Part 5
        • TA 101 – Part 6
        • TA 101 – Part 7
        • TA 101 – Part 8
        • TA 101 – Part 9
        • TA 101 – Part 10
        • TA 101 – Part 11
        • TA 101 – Part 12
        • TA 101 – Part 13
        • TA 101 – Part 14
        • TA 101 – Part 15
        • TA 101 – Part 16
        • TA 101 – Part 17
      • Irrational Exuberance
      • Cognitive Biases
      • Arthur Hill on Goals, Style and Strategy
      • Arthur Hill on Moving Average Crossovers
      • Multicollinearity
      • "The Trader's Journal" by Gatis Roze
        • Stage 1: Money Management
        • Stage 2: Business of Investing
        • Stage 3: The Investor Self
        • Stage 4: Market Analysis
        • Stage 5: Routines
        • Stage 6: Stalking Your Trade
        • Stage 7: Buying
        • Stage 8: Monitoring Your Investments
        • Stage 9: Selling
        • Stage 10: Re-Examine, Refine, Re-Enhance
        • Additional Reading
      • Bob Farrell's 10 Rules
      • Richard Rhodes' Trading Rules
      • Donchian Trading Guidelines
      • Why and How To Use Correlation
    • Chart Analysis
      • What Are Charts?
      • Support & Resistance
      • Trend Lines
      • Gaps and Gap Analysis
      • Introduction to Chart Patterns
      • Chart Patterns
        • Broadening Top or Megaphone Top
        • Double Top Reversal
        • Double Bottom Reversal
        • Head and Shoulders Top
        • Head and Shoulders Bottom
        • Falling Wedge
        • Rising Wedge
        • Rounding Bottom
        • Triple Top Reversal
        • Triple Bottom Reversal
        • Bump and Run Reversal
        • Flag, Pennant
        • Symmetrical Triangle
        • Ascending Triangle
        • Descending Triangle
        • Rectangle
        • Price Channel
        • Measured Move—Bullish
        • Measured Move—Bearish
        • Cup With Handle
      • Chart Types
        • Arms CandleVolume
        • CandleVolume
        • Elder Impulse System
        • EquiVolume
        • Heikin-Ashi Candlesticks
        • Kagi Charts
        • Renko Charts
        • Three Line Break Charts
        • MarketCarpets
        • Relative Rotation Graphs (RRG Charts)
        • Seasonality Charts
        • Yield Curve
      • Candlestick Charts
        • Introduction to Candlesticks
        • Candlesticks and Traditional Chart Analysis
        • Candlesticks and Support
        • Candlesticks and Resistance
        • Candlestick Bullish Reversal Patterns
        • Candlestick Bearish Reversal Patterns
        • Candlestick Pattern Dictionary
      • Point and Figure Charts
        • Point and Figure Basics
          • Introduction to Point & Figure Charts
          • Point & Figure Scaling and Timeframes
          • P&F Trend Lines
        • Classic Patterns
          • P&F Bullish Breakouts
          • P&F Bearish Breakdowns
          • P&F Signal Reversed
          • P&F Catapults
          • P&F Triangles
          • P&F Bull & Bear Traps
        • P&F Price Objectives
          • P&F Price Objectives: Breakout and Reversal Method
          • P&F Price Objectives: Horizontal Counts
          • P&F Price Objectives: Vertical Counts
        • Point & Figure Indicators
        • P&F Scans and Alerts
          • P&F Pattern Alerts
      • Chart Annotation Tools
        • Andrews' Pitchfork
        • Stock Market Cycles
        • Fibonacci Retracements
        • Fibonacci Arcs
        • Fibonacci Fans
        • Fibonacci Time Zones
        • Quadrant Lines
        • Raff Regression Channel
        • Speed Resistance Lines
    • Technical Indicators & Overlays
      • Introduction to Technical Indicators and Oscillators
      • Technical Indicators
        • Accumulation/Distribution Line
        • Alligator Indicator
        • Aroon
        • Aroon Oscillator
        • ATR Bands
        • ATR Trailing Stops
        • Average Directional Index (ADX)
        • Average True Range (ATR) and Average True Range Percent (ATRP)
        • Balance of Power (BOP)
        • Bollinger BandWidth
        • %B Indicator
        • Chaikin Money Flow (CMF)
        • Chaikin Oscillator
        • Chande Trend Meter (CTM)
        • CMB Composite Index
        • Commodity Channel Index (CCI)
        • ConnorsRSI
        • Coppock Curve
        • Correlation Coefficient
        • DecisionPoint Price Momentum Oscillator (PMO)
        • Detrended Price Oscillator (DPO)
        • Distance From Highs
        • Distance From Lows
        • Distance To Highs
        • Distance To Lows
        • Distance From Moving Average
        • Ease of Movement (EMV)
        • Force Index
        • Gopalakrishnan Range Index
        • High Low Bands
        • High Minus Low
        • Highest High Value
        • Linear Regression R2
        • Lowest Low Value
        • Mass Index
        • MACD (Moving Average Convergence/Divergence) Oscillator
        • MACD-Histogram
        • MACD-V
        • MACD-V Histogram
        • Median Price
        • Money Flow Index (MFI)
        • Negative Volume Index (NVI)
        • On Balance Volume (OBV)
        • Percentage Price Oscillator (PPO)
        • Percentage Volume Oscillator (PVO)
        • Performance Spread
        • Price Relative/Relative Strength
        • Pring's Know Sure Thing (KST)
        • Pring's Special K
        • Rate of Change (ROC)
        • Relative Strength Index (RSI)
        • Relative Volume (RVOL)
        • RRG Relative Strength
        • StockCharts Technical Rank
        • Slope
        • Standard Deviation (Volatility)
        • Stochastic Oscillator (Fast, Slow, and Full)
        • StochRSI
        • Traffic Light
        • TRIX
        • True Range
        • True Strength Index
        • TTM Squeeze
        • Typical Price
        • Ulcer Index
        • Ultimate Oscillator
        • Vortex Indicator
        • Weighted Close
        • Williams %R
      • Technical Overlays
        • Anchored VWAP
        • Bollinger Bands
        • Chandelier Exit
        • Double Exponential Moving Average (DEMA)
        • Hull Moving Average (HMA)
        • Ichimoku Cloud
        • Kaufman's Adaptive Moving Average (KAMA)
        • Keltner Channels
        • Linear Regression Forecast
        • Linear Regression Intercept
        • Moving Averages—Simple and Exponential
        • Moving Average Ribbon
        • Moving Average Envelopes
        • Parabolic SAR
        • Pivot Points
        • Price Channels
        • Triple Exponential Moving Average (TEMA)
        • Volume-by-Price
        • Volume-Weighted Average Price (VWAP)
        • ZigZag
    • Market Indicators
      • Introduction to Market Indicators
        • Market Indicator Dictionary
      • Advance-Decline Line
      • Advance-Decline Percent
      • Advance-Decline Volume Line
      • Advance-Decline Volume Percent
      • Arms Index (TRIN)
      • Bullish Percent Index (BPI)
      • DecisionPoint Intermediate-Term Breadth Momentum Oscillator (ITBM)
      • DecisionPoint Intermediate-Term Volume Momentum Oscillator (ITVM)
      • DecisionPoint Swenlin Trading Oscillator (STO)
      • High-Low Index
      • High-Low Percent
      • McClellan Oscillator
      • McClellan Summation Index
      • Net New 52-Week Highs
      • Percent Above Moving Average
      • Pring's Bottom Fisher
      • Pring's Diffusion Indicators
      • Pring's Inflation and Deflation Indexes
      • Pring's Net New High Indicators
      • Put/Call Ratio
      • Record High Percent
      • Volatility Indices
    • Market Analysis
      • Dow Theory
      • Sector Rotation Analysis
      • Intermarket Analysis
      • The DecisionPoint Chart Gallery
      • DecisionPoint Rydex Asset Analysis
      • Wyckoff Analysis Articles
        • Wyckoff Market Analysis
        • Wyckoff Stock Analysis
        • The Wyckoff Method: A Tutorial
      • Elliott Wave Analysis Articles
        • Introduction to Elliott Wave Theory
        • Identifying Elliott Wave Patterns
        • Guidelines for Applying Elliott Wave Theory
    • Trading Strategies & Models
      • DecisionPoint Trend Model
      • Trading Strategies
        • Bollinger Band Squeeze
        • CCI Correction
        • CVR3 VIX Market Timing
        • Faber's Sector Rotation Trading Strategy
        • Gap Trading Strategies
        • Harmonic Patterns
        • Hindenburg Omen
        • Ichimoku Cloud Trading Strategies
        • The 'Last' Stochastic Technique
        • MACD Zero-Line Crosses With Swing Points
        • Moving Average Trading Strategies
          • Finding Support and Resistance in Moving Averages
          • Guppy Multiple Moving Average: An MA Ribbon Designed to Tip the Market’s Hand
          • How To Trade Price-to-Moving Average Crossovers
          • Trading the Bounce: Finding Support and Resistance in Moving Averages
          • Trading the Death Cross
          • Trading Using the Golden Cross
          • Using the 5-8-13 EMA Crossover for Short-Term Trades
        • Moving Momentum
        • Narrow Range Day NR7
        • Percent Above 50-day SMA
        • Percent B Money Flow
        • The Pre-Holiday Effect
        • RSI(2)
        • Six-Month Cycle MACD
        • Slope Performance Trend
        • Stochastic Pop and Drop
        • Swing Charting
        • Trend Quantification and Asset Allocation
    • Index & Market Indicator Catalog
      • Advance-Decline Indicators
      • Cboe Indices and Indicators
      • CME Futures and Spot Prices
      • DecisionPoint Sentiment Indicators
      • Dow Jones Breadth Indicators
      • Dow Jones Global Indices
      • Dow Jones Select Indices
      • Dow Jones Titans Indices
      • Dow Jones US Indices
      • Economic Indicators
      • ICE Futures and Spot Prices
      • Intellidex Indices
      • MSCI Indices
      • New 52-week Highs and Lows for Exchanges
      • NYSE Arca Equity Indices
      • NYSE Equity Indices
      • Philadelphia Indices
      • S&P 500 Sector and Industry Groups
      • S&P GSCI Indices
      • StockCharts AD Percent
      • StockCharts AD Volume Percent
      • StockCharts Bullish Percent Index
      • StockCharts High-Low Index
      • StockCharts High-Low Percent
      • StockCharts Percent Above Moving Average
      • StockCharts Pseudo Symbols
      • StockCharts Record High Percent
      • StockCharts Theoretical Indices
      • US Treasury Yields
    • 📖Glossary
      • 📖Glossary - A
      • 📖Glossary - B
      • 📖Glossary - C
      • 📖Glossary - D
      • 📖Glossary - E
      • 📖Glossary - F
      • 📖Glossary - G
      • 📖Glossary - H
      • 📖Glossary - I
      • 📖Glossary - J
      • 📖Glossary - K
      • 📖Glossary - L
      • 📖Glossary - M
      • 📖Glossary - N
      • 📖Glossary - O
      • 📖Glossary - P
      • 📖Glossary - Q
      • 📖Glossary - R
      • 📖Glossary - S
      • 📖Glossary - T
      • 📖Glossary - U
      • 📖Glossary - V
      • 📖Glossary - W
      • 📖Glossary - X, Y, Z
    • Options Glossary
    • Educational Resources
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On this page
  • Paper Trade
  • Parabolic SAR
  • Pennant
  • Penny Stock
  • Percent Investment Advisors Bullish
  • Percentage Price Oscillator (PPO)
  • Percentage Volume Oscillator (PVO)
  • PHLX
  • Piercing Line
  • Pivot Point
  • Pivot Points
  • Point & Figure Buy Signal
  • Point & Figure Chart
  • Point & Figure Price Objective
  • Point & Figure Sell Signal
  • Position Trading
  • Positive Directional Indicator (+DI)
  • Positive Reversal
  • PPO
  • Precious Metals Commodities Index ($GPX)
  • Presidential Cycle
  • Price by Volume
  • Price Channels
  • Price Momentum Oscillator (PMO)
  • Price Objective (P&F)
  • Price Oscillator (PO)
  • Price Patterns
  • Price Relative
  • Price/Earnings Ratio
  • Proxy
  • Put Option
  • Put/Call Ratio

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  1. Table of Contents
  2. Glossary

Glossary - P

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Last updated 11 months ago

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Paper Trade

A hypothetical trade that does not involve any monetary transactions. Paper trading is a risk-free way to learn the ropes of the market.

Parabolic SAR

An indicator that sets trailing price stops for long or short positions. Also referred to as the “stop-and-reversal indicator,” Parabolic SAR is more popular for setting stops than for establishing direction or trend. If the trend is up, buy when the indicator moves below the price. If the trend is down, sell when the indicator moves above the price. See our ChartSchool article on .

Pennant

A continuation chart pattern that is , except that it is more horizontal and resembles a small symmetrical triangle. Like the flag, the pennant usually lasts from one to three weeks and is typically followed by a resumption of the prior trend. See our ChartSchool article on .

Penny Stock

A stock that usually sells for less than $1 per share, though the price may rise because of significant promotion. Penny stocks are very speculative and risky due to their lack of available information and poor .

Percent Investment Advisors Bullish

A measure of stock market bullish sentiment that is published weekly by Investor's Intelligence. When only 35% of professionals are bullish, the market is considered oversold. A reading of 55% is considered to be overbought.

Percentage Price Oscillator (PPO)

Percentage Volume Oscillator (PVO)

PHLX

The Philadelphia Stock Exchange. Even though the PHLX was taken over by the Nasdaq, the Nasdaq website still shows a separate listing for the PHLX with over 2600 index, equity and sector-index options traded every day.

Piercing Line

A bullish two-day reversal pattern. The first day, in a downtrend, is a long black day. The next day opens at a new low, then closes above the midpoint of the body of the first day.

Pivot Point

Pivot Points

Point & Figure Buy Signal

Point & Figure Chart

Point & Figure Price Objective

Point & Figure Sell Signal

Position Trading

Positive Directional Indicator (+DI)

Positive Reversal

PPO

Precious Metals Commodities Index ($GPX)

The Precious Metals Commodities Index ($GPX) charted by StockCharts.com is published by Goldman Sachs. Gold, platinum and silver are the listed metals.

Presidential Cycle

A four-year cycle that shows the last two years of a President's term outperforming the first two years.

Price by Volume

Price Channels

Price Momentum Oscillator (PMO)

Price Objective (P&F)

Price Oscillator (PO)

Price Patterns

Price Relative

Price/Earnings Ratio

The P/E ratio is figured by dividing the price of a stock by the company earnings per share. For example, a stock selling at $50, with earnings at $5 per share for the previous year, has a P/E ratio of 10 (50/5 = 10). This value is also called the multiple.

Proxy

A security or index whose correlation with another security or index is so strong that it is used as a substitute for the other. For example, General Electric has a very high correlation to the performance of the S&P 500. As GE goes, so goes the S&P 500. Therefore, GE can be used as a proxy for the S&P 500.

Put Option

The right to sell a stock or commodity future at a given price before a given date. The owner of the put option is speculating that the price of the stock will go down and is therefore bearish.

Put/Call Ratio

An indicator based on the difference between two moving averages expressed as a percentage. The PPO is found by subtracting the longer moving average from the shorter moving average and then dividing the difference by the longer moving average. See our ChartSchool article on .

The percentage difference between two of volume expressed as a percentage. The PVO is found by subtracting the longer volume moving average from the shorter volume moving average and then dividing the difference by the longer moving average. See our ChartSchool article on .

A support or resistance level is sometimes described as a pivot point. When price drops down to reach a support level, it typically pivots higher; similarly, when price comes up to a resistance level it generally pivots lower. When price actually breaks through at the pivot point instead of pivoting, this suggests further movement in that direction. See our ChartSchool article on .

Originally used by floor traders, Pivot Points use the prior period's high, low, and close to estimate future support and resistance levels. Adding a Pivot Points overlay to the chart allows analysts to easily see when price action moves above or below these potential support and resistance levels. See our ChartSchool article on .

Initiated when a column of X's goes higher than the previous column of X's. The signal remains in effect until a occurs. This very simple pattern is used to calculate the various .

A type of chart consisting of columns of X's (showing price rises) and O's (showing price falls) arranged on a square grid. When the index increases, a rising column of black X's is created — a rally. When the index falls, a descending column of red O's appears – a decline. See our ChartSchool article on .

The price that a stock should reach based on recent P&F chart signals. See below.

Initiated when a column of O's goes lower than the previous column of O's. The signal remains in effect until a occurs.

A style of trading characterized by holding open positions for an extended period of time. Contrast this with , where a trader buys, then sells out of a position before the market closes that day.

When the ADX Indicator is selected, SharpCharts plots the Positive Directional Indicator (+DI), Negative Directional Indicator (-DI), and (ADX). With the black, green and red color scheme on SharpCharts, +DI is the green line that measures the force of the up moves. The default setting is 14 periods.

Developed by Andrew Cardwell, a positive reversal occurs when RSI forms a lower low and the security forms a higher low. It is a backward bullish divergence. See our ChartSchool article on .

See .

See .

Like Bollinger Bands, price channels form boundaries above and below the price line and can be used as volatility indicators. Price channels are created by specifying the number of periods that will chart an n-period high or low around the price line. See our ChartSchool article on .

A proprietary indicator created by Carl Swenlin and featured on the StockCharts.com website. See our ChartSchool article on the .

Simple calculations based on standard patterns. They are of questionable value, but are available them on our charts because they have been used for such a long time. StockCharts.com makes no claim about their accuracy or usefulness whatsoever. For more on how they are calculated, see our ChartSchool article on .

An indicator based on the difference between two moving averages. The expresses the difference in percentage terms, while the expresses the difference in absolute terms. See our ChartSchool article on

Patterns that appear on price charts possessing predictive values. Patterns are divided into reversal and continuation patterns. See our ChartSchool articles on .

An indicator that compares the performance of one security against that of another by plotting the two as a ratio. For example, Google can be compared to the S&P 500 with a ratio of the prices (Google/S&P 500). Google is outperforming when the ratio rises and under-performing when the ratio falls. See our ChartSchool article on .

Based on Cboe statistics (), the Put/Call Ratio equals the total number of puts divided by the total number of calls. When more puts are traded than calls, the ratio will exceed 1. As an indicator, the Put/Call Ratio is used to measure market sentiment. When the ratio gets too low, it indicates that call volume is high relative to put volume, and the market may be overly bullish or complacent. When the ratio gets too high, it indicates that put volume is high relative to call volume and the market may be overly bearish or in panic. StockCharts.com charts the Put/Call ratio under the symbol .

Percentage Price Oscillator (PPO)
Support and Resistance
Pivot Points
Point & Figure Charts
Relative Strength Index (RSI)
Chart $GPX in GalleryView.
Price Channels
the PMO indicator
Chart Patterns
Price Relative
http://www.cboe.com/
$CPC
Price Objective
P&F Buy Signal
Percentage Price Oscillator
Point & Figure chart
Point and Figure Price Objectives
A
F
K
P
U
B
G
L
Q
V
C
H
M
R
W
D
I
N
S
X, Y, Z
E
J
O
T
📖
📖
Parabolic SAR
Flag, Pennant (Continuation)
Percentage Volume Oscillator (PVO)
Price Oscillators.
Percentage Price Oscillator (PPO)
P&F Sell Signal
day trading
Average Directional Index
Absolute Price Oscillator (APO)
Bullish Percent Indexes
moving averages
liquidity
similar to the flag
Volume by Price
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