Bull Market
A long-term (months to years) upward price movement characterized by a series of higher intermediate (weeks to months) highs interrupted by a series of higher intermediate lows.
Bear Market
A long-term downtrend characterized by lower intermediate lows interrupted by lower intermediate highs.
Primary Swing
An intermediate (weeks to months) price movement moving in the same direction as the long-term movement.
Secondary Reaction (Correction)
An important intermediate-term price movement moving in the contrary direction to the long-term (bull or bear) market, usually retracing between 33 and 67 percent of the previous primary price movement.
SUPPORT AND RESISTANCE
Support levels indicate the price at which most traders feel that prices will move higher. There is sufficient demand for a security to cause a halt in a downward trend and turn the trend up. You can spot support levels on the charts (bar and candlestick) by looking for a sequel of lows that fluctuate only slightly along a horizontal line. When a support level is penetrated (the price drops below the support level) it often becomes a resistance level; this is because traders want to limit their losses and will sell later, when prices approach the former level.
Like support levels, resistance levels are horizontal lines on the chart (bar and candlestick). They mark the upper level for trading, or a price at which sellers typically out-number buyers. When resistance levels are broken, the price moves above the resistance level.
Many traders find lines of support and resistance useful in determining the placement of stop-loss and take profit limit orders.
