Terminology Guide - "B"

Bar Chart: A chart style that displays price data using bars. The top of the vertical line indicates the highest price a security has traded at during that time interval. The bottom of the vertical line indicates the lowest price a security has traded during that time interval.

Basing: A time period in which the price forming a foundation after a significant move. This usually is in reference to a stock forming a support level due to heavy accumulation.

Bear: The belief that the price will go down. AKA bearish.

Bear Trap: When the price gives a sell signal but immediately reverses in order to fake out bearish investors. Also known as a bearish head fake.

Bid: The bidding price from buyers for sellers. If you place a market sell order, then you are likely going to be filled at the bidding price.

Borrowing: When short selling a stock, you need shares to borrow in order to make money from a bearish move. You are borrowing these shares from your broker that you can buy back later. When you buy to cover, you are cancelling out your short sell, which is essentially just exiting the position.

 

Black Swan: An unexpected event that comes into play and impacts the stock.

Breakout: When the price of a stock breaks above a key level or trendline to the upside.

Bull: The belief that the price will go up. AKA bullish. If a stock is bullish, the price is increasing.

Bull Trap: When the price gives a buy signal but immediately reverses in order to fake out bullish investors. Also known as a bullish head fake.

Buy Signal: In indication to buy a stock. This is common when a stock is breaking out or if an indicator is showing bullish tendencies.

Buyback: When a company repurchases shares of its own stock.

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