By comparing the number of advances to declines, overbought conditions are indicated below .75 and oversold above 1.25. The price a seller is willing to accept for a security. Also see Bid. ADX is the 14-day exponential moving average of the Directional Movement. An envelope consisting of support and resistance lines of the average true price range, calculated by the exponential average of the difference between highs and lows.
Time is factored into the price movements on the horizontal axis.
An offer to buy a specific quantity of a security at a stated price. Also see Ask. Once the price breaks above its resistance or below its support, its likely to continue in the same direction. Also referred to as a Trendline Violation . The last price of an issue in the trading day which is often used in technical analysis formulas.