- Trading range: the market moves up and down within a consistent range without establishing a definitive trend in one direction
- Consolidation: the range of price's movement constricts as the market becomes directionless
- Reversal: the market moves in the opposite direction from the previous trend, implying the end of that trend
- Retrace: the market moves some amount in the opposite direction from the previous trend before the trend is eventually reinstated
- 2 Attempts Rule: the idea that if the market attempts to do something twice and fails, the opposite will happen
- Breakout: the market breaks out of a trading range or a resistance level
- Breakdown: the market breaks out of a trading range or a support level
Support and resistance lines are typically horizontal, but when they are diagonal along a trend they are known as trend lines. The basic idea behind using support and resistance effectively in a trading range is to buy at the support level and sell at resistance. Breakout means that the market isn't behaving predictably enough to allow for safe bets on its future performance: buy in an uptrend and sell in a downtrend.
