Technical Rally

Categories: Charts, Trading

When a bunch of tech geeks get together singing about rent control for millionaires and...whoops, wrong kind of technical rally. In finance, a technical rally is when a security’s price goes up because of the collective actions of technical traders.

That’s not to say they’re trying to all work together. It’s just that they’re all using the same indicators and looking at the same patterns on the same charts. That means when something happens, the technical traders all notice at the same time, and all take the same (or, similar) action, which bumps up the price of a security for a technical rally. This bump might be the beginning of a bullish trend, or a short bump that goes back down. It’s like they’re all on the same rollercoaster together, riding (and to an extent, causing) the same ups and downs. Don’t lose your stomach, now!

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