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Glossary

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Event Class

Technical Analysis are divided into four event classes based on their common features: Classic Patterns, Short-term Patterns, Indicators and Oscillators

Event Date

The date on which the Technical Analysis occurred.

Event Risk

The risk due to unforeseen events partaken by or associated with a company. The risk associated with a changing portfolio value due to large swings in market prices. Also referred to as "jump risk" or "fat-tails".

Event Type

Event Type describes the specific type of event. Examples of Event Types are: Head and Shoulders Bottom, Bearish Engulfing Line, Double Top, Price Crosses Moving Average and Momentum.

Exchange

The market that performs and tracks the actual trades in equities and other financial instruments. Major exchanges include the New York Stock Exchange (NYSE) and the NASDAQ.

Exchange Traded Fund or ETF

A security that tracks an index, a commodity or a basket of assets like an index fund, but trades like a stock on an exchange, thus experiencing price changes throughout the day as it is bought and sold. Because it trades like a stock whose price fluctuates daily, an ETF does not have its net asset value (NAV) calculated every day like a mutual fund does.
By owning an ETF, you get the diversification of an index fund as well as the ability to sell short, buy on margin and purchase as little as one share. Another advantage is that the expense ratios for most ETFs are lower than those of the average mutual fund. When buying and selling ETFs, you have to pay the same commission to your broker that you'd pay on any regular order. One of the most widely known ETFs is called the SPDR (Spider), which tracks the S&P 500 index and trades under the symbol SPY.

Experiential Rating

This is a rating applied to each Classic Pattern that represents how a professional Technical Analyst might assess this pattern. The rating ranges from 0 to 100 with 100 representing a "perfect" example of this pattern type.

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