Amplitude

AAA

DEFINITION of 'Amplitude'

The difference in price from the midpoint of a trough to the midpoint of a peak of a security. Amplitude is positive when calculating a bullish retracement (when calculating from trough to peak) and negative when calculating a bearish retracement (when calculating from peak to trough).

INVESTOPEDIA EXPLAINS 'Amplitude'

Amplitude is calculated often in technical analysis. For example, it is the amount of retracement in a price and also the width of a channel in a range-bound market.

Chart pattern analysis says that after a retracement, price will continue to move at least a distance equal to the retracement's amplitude.

RELATED TERMS
  1. Resistance (Resistance Level)

    A chart point or range that caps an increase in the level of ...
  2. Retracement

    A temporary reversal in the direction of a stock's price that ...
  3. Support (Support Level)

    The price level which, historically, a stock has had difficulty ...
  4. Range-Bound Trading

    A trading strategy that identifies stocks trading in channels. ...
  5. Trading Channel

    When charting the price of an asset, this is the space on the ...
  6. Fibonacci Retracement

    A term used in technical analysis that refers to areas of support ...
Related Articles
  1. Fibonacci And The Golden Ratio
    Active Trading

    Fibonacci And The Golden Ratio

  2. Support And Resistance Basics
    Active Trading Fundamentals

    Support And Resistance Basics

  3. Retracement Or Reversal: Know The Difference
    Options & Futures

    Retracement Or Reversal: Know The Difference

  4. Using Double Tops And Double Bottoms ...
    Forex Education

    Using Double Tops And Double Bottoms ...

comments powered by Disqus
Hot Definitions
  1. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  2. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  3. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  4. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  5. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  6. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
Trading Center