Bulge
Definition of 'Bulge'A fast increase in a security's or commodity's trading price. Bulge is an informal word with a meaning similar to the term bubble. A bulge occurs when an investment instrument's price rises quickly, often accompanied by increased volume. The price increases can continue over a period of hours, days or weeks, but a bulge is generally short-lived. A bulge is similar to a rally on equity exchanges. |
|
Investopedia explains 'Bulge'Prices for a particular instrument or sector might have strong support and continue to quickly rise, resulting in a temporary "bulge" in price. Bulges are characteristically fast moving and short-lived. Buying may continue until the security is overbought, and prices drop off, sometimes dramatically. Investors who jump on late, hoping that prices will continue to rise, often miss the move entirely due to its short-term nature. |
Related Definitions
Articles Of Interest
-
Introduction To Swing Trading
This style, between day trading and trend trading, may be a good one for beginners to try. -
How To Avoid Emotional Investing
Most investors buy high and sell low, but you can avoid this trap by using some simple strategies. -
When Is A Bull Market Not A Bull Market?
During some bull or bear moves in the stock markets, investors will be going with the trend, but day traders may find they cannot. -
Digging Deeper Into Bull And Bear Markets
Discover why it's important to know the characteristics of the two types of market conditions. -
6 Asset Allocation Strategies That Work
Your portfolio's asset mix is a key factor in whether it's profitable. Find out how to get this delicate balance right. -
War's Influence On Wall Street
Blitzkrieg? Dawn raids? Sounds like the markets and the battlefield have a few things in common. -
Nobel Winners Are Economic Prizes
Before you try to profit from their theories, you should learn about the creators themselves. -
The Nash Equilibrium
Nash Equilibrium is a key concept of game theory, which helps explain how people and groups approach complex decisions. Named after renowned mathematician John Nash, the idea of Nash Equilibrium ... -
Pitfalls Of Copycat Investing
While it may sound good in theory to attempt to mimic the investment style and profile of a successful institution, it is often much harder (if not impossible) to do so in practice. -
The Art Of Cutting Your Losses
Taking corrective action before your losses worsen is always a good strategy. Find out how to keep your capital losses small and let your winners run.
Free Annual Reports