Glossary · 25 terms
Technical Analysis
All technical analysis terms in the EquitiesIndia.com glossary — plain-English definitions written for Indian retail investors.
ATR(Average True Range)
Average True Range (ATR) measures the average price range of an asset over a specified period, accounting for overnight gaps, making it a measure of market volatility rather than price direction. ATR is used on NSE Nifty and Bank Nifty charts to contextualise the typical daily price movement and to size positions proportionally.
Bollinger Bands(BB)
Bollinger Bands consist of a simple moving average flanked by upper and lower bands set two standard deviations above and below the SMA. They expand during periods of high volatility and contract during low-volatility periods, providing a dynamic range context for price movement on Nifty and Bank Nifty charts.
Candlestick(Japanese Candlestick)
A candlestick is a price chart element that represents the open, high, low, and close of a security for a given time period, using a filled body for the open-close range and wicks for the high and low extremes. Candlestick charting, originating in Japan, is the dominant chart type used on Indian equity and F&O trading platforms.
Death Cross(Bear Cross)
A Death Cross occurs when a shorter-period moving average crosses below a longer-period moving average — typically the 50-day SMA crossing below the 200-day SMA. On Nifty 50 charts, this event has historically been cited as a bearish structural development by Indian market analysts.
Doji
A doji is a candlestick pattern where the open and close prices are virtually equal, resulting in a very small or absent body with wicks extending above and below. It reflects indecision between buyers and sellers and is observed frequently on Nifty 50 and Bank Nifty intraday and daily charts.
Double Bottom
A Double Bottom is a bullish reversal chart pattern where an asset's price reaches a similar low on two separate occasions with a moderate rally between them, suggesting that declining pressure failed to push prices lower on the second attempt. It has been observed on Nifty 50 and Bank Nifty charts at historically significant lows.
Double Top
A Double Top is a bearish reversal chart pattern where an asset's price reaches a similar high on two separate occasions, separated by a moderate pullback, suggesting that upward momentum failed to sustain beyond that level on the second attempt. This pattern has been observed historically on Nifty 50 and individual stock charts in India.
EMA(Exponential Moving Average)
The Exponential Moving Average (EMA) applies progressively greater weight to recent prices, making it more responsive to new market information than the SMA. The 20-day and 50-day EMAs are commonly used in technical analysis of Nifty 50 and Bank Nifty charts.
Fibonacci Retracement(Fib Retracement)
Fibonacci Retracement is a technical analysis tool that identifies potential support and resistance levels by applying key ratios derived from the Fibonacci sequence — primarily 23.6%, 38.2%, 50%, 61.8%, and 78.6% — to a prior significant price move. These levels are widely plotted on Nifty 50 and Bank Nifty charts by Indian technical analysts.
Gap Down
A gap down occurs when a security's opening price is lower than the previous session's low, leaving a visible void on the chart. On NSE, gap downs in Nifty and Bank Nifty are common following adverse global market sessions, negative domestic macro announcements, or significant company-specific negative news for individual stocks.
Gap Up
A gap up occurs when a security's opening price is higher than the previous session's high, leaving a visible price gap on the chart where no trading occurred. On NSE, gap ups in Nifty and Bank Nifty futures frequently reflect overnight developments in global markets or significant domestic news events.
Golden Cross(Bull Cross)
A Golden Cross occurs when a shorter-period moving average crosses above a longer-period moving average — most commonly the 50-day SMA crossing above the 200-day SMA. This event on Nifty 50 charts has historically been discussed in Indian financial media as a longer-term bullish structural observation.
Hammer
A hammer is a candlestick pattern with a small body at the upper end of the trading range and a long lower wick at least twice the length of the body, suggesting that a significant intraday decline was rejected and prices recovered to close near the high. It has been observed on Nifty and individual stock charts as a historically notable pattern at potential lows.
Head and Shoulders(H&S)
The Head and Shoulders is a chart pattern comprising three successive peaks — a central peak (head) higher than the two flanking peaks (shoulders) — with a neckline connecting the troughs between them. On Nifty 50 and large-cap stock charts, this pattern has been historically associated with observations of potential trend reversal from uptrend to downtrend.
MACD(Moving Average Convergence Divergence)
MACD (Moving Average Convergence Divergence) is a trend-following momentum indicator that plots the difference between a 12-period EMA and a 26-period EMA, with a 9-period EMA of that difference serving as the signal line. It is one of the most frequently referenced indicators on Nifty and Bank Nifty charts in India.
Moving Average(MA)
A moving average is a continuously updated average of a security's price over a defined lookback period, used to smooth out short-term fluctuations and identify the prevailing trend direction. Moving averages are among the most widely referenced indicators on Nifty 50 and Bank Nifty price charts.
Overbought
Overbought describes a condition where a security's price has risen rapidly to a level that may not be sustainable in the near term, as indicated by momentum oscillators such as RSI or Stochastics exceeding defined thresholds. On NSE charts, overbought readings in Nifty or Bank Nifty were noted as suggesting extended near-term momentum.
Oversold
Oversold describes a condition where a security's price has declined rapidly to a level suggesting the pace of selling may have been excessive in the near term, as indicated by momentum oscillators such as RSI falling below 30 or Stochastics dropping below 20. On NSE charts, oversold readings in Nifty and individual stocks were noted as potential near-term stabilisation indicators.
Pivot Points(Floor Pivots)
Pivot Points are calculated support and resistance levels derived from the previous session's high, low, and close. They are widely used by intraday traders of Nifty futures, Bank Nifty options, and large-cap NSE stocks as pre-calculated reference zones for the trading day.
Resistance
Resistance is a historical price level at which a rising security has previously encountered supply sufficient to halt or reverse the upward move. On Nifty 50 and Bank Nifty charts, resistance zones are observed where price has repeatedly stalled or reversed during rallies.
RSI(Relative Strength Index)
The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and magnitude of recent price changes to evaluate whether a security is in overbought or oversold territory. It ranges from 0 to 100 and is one of the most widely used technical indicators on Indian equity and F&O charts.
SMA(Simple Moving Average)
The Simple Moving Average (SMA) is the arithmetic mean of a security's closing prices over a specified number of periods. The 50-day and 200-day SMAs of Nifty 50 have historically been referenced as key trend benchmarks by Indian market participants.
Support
Support is a historical price level at which a declining security has previously found demand sufficient to halt or reverse the downward move. In technical analysis of Nifty 50 and Bank Nifty charts, support levels are observed zones where price has historically paused or reversed after falling.
Trendline
A trendline is a straight line drawn on a price chart connecting a series of successive highs or lows to visually represent the direction and pace of a price trend. Trendlines on Nifty 50 and Bank Nifty charts have been used historically to identify the slope and boundaries of prevailing trends.
VWAP(Volume Weighted Average Price)
VWAP (Volume Weighted Average Price) is the average price at which a security has traded throughout the day, weighted by the volume transacted at each price level. On NSE, VWAP is a key reference for institutional order execution and is widely monitored by intraday traders of Nifty futures and large-cap stocks.