Concept

Trendline

A line drawn across a series of price highs or lows on a chart to show the direction prices have been moving. A clean break through it can signal the trend is changing.

Why we track it

It turns a noisy chart into one question: is the price still moving the way it has been? We use them to show where a trend starts and where it breaks.

Asset allocationHow a portfolio is split among kinds of investments, such as stocks, bonds and cash.
BacktestingTesting an investing rule on historical data to see how it would have performed before putting money behind it.
Basis pointOne hundredth of a percentage point (0.01%), often written bp.
Bear marketA fall of roughly 20% or more from a recent peak, usually over several months.
Bull marketA long stretch of rising prices across a market, often dated from a 20% rise off a low.
Business cycle stagesThe economy’s long rise and fall: years of growth, a slowdown, sometimes a recession, then recovery.

Why we track it

Related terms