Klarenbach Research Report Glossary

Headshot of Trent Klarenbach, founder of Klarenbach Research
Trent Klarenbach
December 2, 2023
A person typing on a computer
April 11, 2024
Many of our readers must familiarize themselves with technical analysis, this market analysis style, and our terms.‍ As this learning curve can be steep, we have created a Glossary of terms commonly used in our research.‍ We hope that this will increase the utility of our reports.

Glossary

Dead Cat Bounce: A dead cat bounce is a brief recovery in declining stock or market price.

Day Moving Average (DMA): i.e. 5 DMA, 10 DMA, 20 DMA, 50 DMA, 200 DMA

Fibonacci numbers form a sequence, the Fibonacci sequence, in which each number is the sum of the two preceding ones.

Fibonacci retracement is created by taking two extreme points (usually a peak and a trough) on a stock chart and dividing the vertical distance by the key Fibonacci ratios of 23.6%, 38.2%, 50%, 61.8%, and 100%.

Fibonacci extensions are tools that traders use to establish profit targets or estimate how far a price may travel after a pullback is completed. Extension levels are also possible areas where the price may reverse.

Moving Averages (MA) are price-based, lagging (or reactive) indicators that display the average price over a set period. 

Week Moving Average (WK MA)

TD Sequential Trading (TD): strategy is explicitly designed to predict potential price exhaustion and likely price reversals. A TD9 count often but does not always precede a price reversal. 

VWAP Volume-Weighted Average Price: measures the average price a stock trades over the trading horizon. If the price is above the VWAP, the average purchase is profitable. If the price is below, the average purchase is losing money. It can be a great measure of sentiment.

YTD (Year-to-Date)