Asymmetry in statistics is the degree of asymmetry observed in a probability distribution.
Distributions can show right (positive) or left (negative) skewness to varying degrees. The normal distribution (bell curve) shows zero skewness.
Investors note right skewness when estimating the distribution of returns because, like excess kurtosis, it better reflects the extremes of the dataset than focuses solely on the mean.
Asymmetry informs users about the direction of emissions, but does not tell users the number of emissions.
Asymmetries are often found in stock market returns as well as in the distribution of average individual income.
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.
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.
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.
Mean reversion in finance assumes that various phenomena of interest, such as asset prices and earnings volatility, eventually return to their long-term average levels.
Negative or inverse correlation describes when two variables tend to move in the opposite direction and magnitude relative to each other, so that when one variable increases, the other variable decreases, and vice versa.
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 unique Three Rivers pattern consists of three candles in sequence: a long real body down, a hammer making a new low, and a third candle with a small up real body that stays within the hammer’s range.
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.