The arithmetic mean is a simple average or the sum of a series of numbers divided by the number of this series of numbers.
In the world of finance, the arithmetic mean is usually not a suitable method for calculating the average, especially when a single outlier can greatly skew the average.
Other averages that are more commonly used in finance include the geometric mean and the harmonic mean.
Oversold is a subjective term. Because all traders and analysts use different instruments, some may see an asset oversold while others will see an asset drop even further.
The Accumulation/Distribution Line (A/D) measures the supply and demand of an asset or security by looking at where price closed in a period range and then multiplying that by volume.
A bull trap means a reversal that forces market participants who are on the wrong side of the price movement to close positions with unexpected losses.
A bullish engulfing pattern is a candlestick pattern that forms when a small black candlestick the next day is followed by a large white candlestick whose body completely overlaps or engulfs the body of the previous day’s candlestick.
Capitulation occurs when a significant proportion of investors give in to fear and sell within a short period of time, resulting in a sharp drop in the price of a security or market against a backdrop of high trading volume.
Consolidation is a technical analysis term used to describe the price movement of a stock within a given range of support and resistance over a period of time.