Home Categories Advanced Technical Analysis Concepts Autoregressive models predict future values based on past values. Autoregressive Integrated Moving Average (ARIMA) models predict future values based on past values. A bell curve is a graph depicting a normal distribution that has a bell-like shape. Buying on a dip means taking a long position in an asset or security after its price has experienced a short-term decline in a recurring pattern. A cup and handle is a technical charting pattern that resembles a cup and handle, where the cup is shaped like a “U” and the handle is slightly offset downwards. Data smoothing uses an algorithm to remove noise from a data set, allowing you to highlight important patterns. Double bottom looks like the letter “W”. A twice hit low is considered a support level. The Dow Theory is a technical framework that predicts that a market is in an uptrend if one of its moving averages rises above a previous important high, followed or followed by a similar rise in the other moving average. A dragonfly doji may appear after the price rises or falls. Elliott Wave Theory is a form of technical analysis that looks for recurring long-term price patterns associated with constant changes in investor sentiment and psychology.