Test
Definition of 'Test'In technical analysis, it is when a stock price approaches a support or resistance level set by the market. If the stock stays within the support and resistance levels, the test is passed. However, if the stock price reaches new lows and/or new highs, the test has failed. |
|
Investopedia explains 'Test'To test whether a stock price will break a support or resistance level, technical traders will typically use specific stock-charting programs designed to track price movements to identify when to buy or sell a position. |
Related Definitions
Articles Of Interest
-
Support And Resistance Basics
Understanding the concept of Support and Resistance in trading can drastically improve your short-term investing strategy. -
The Psychology Of Support And Resistance Zones
Emotion drives the market more than you might realize. Find out how psychology affects support and resistance zones. -
Interpreting Support And Resistance Zones
Use of support and resistance zones can be a key to successful trades. Learn how they work and how to use them. -
Backtesting: Interpreting The Past
We offer some tips on this process that can help refine your current trading strategies. -
Strong Volume Gainers, Can It Continue?
Volume is one of those indicators that gets overlooked, likely because it's shown by default on almost every chart, making it a little dull. But volume is what drives markets. Big volume jumps ... -
Market Summary For May 17, 2013
The U.S. stock markets moved sharply higher this week, on track for its fourth straight week of gains, driven by ongoing improvements in economic indicators. -
Parabolic SAR Buy Signals
The Parabolic SAR indicator is flashing "buy" in these four diverse stocks. Not simply relying on one indicator though, I take a look at the overall technical outlook and determine which ones ... -
Market Summary for May 10 2013
Major U.S. indices moved higher this week but, given the new highs, traders should watch for retracements next week. -
Overheated Expectations Send Rackspace Investors To The Torture Chamber
Absent a real competitive moat, it's hard to make sense of Rackspace's valuation. -
Buying The Upward Trend Channel Bounce
Find out how to set up the trades for four stocks that are moving higher within well-defined trend channels.
Free Annual Reports