Important terms starting with F that can be useful for making money in stock market, Forex or any financial market it pays to know them.
Financial Futures: Futures contracts based on financial instruments such as U. S. Treasury Bonds, Fed Funds, and other interest rate-sensitive issues, currencies and stock market indices.
Futures Contract: Exchange-traded contracts that give the holder the obligation to buy or receive a certain amount of a product at a specific prices on a specific date. Futures are used by business as a hedge against unfavorable price changes and by speculators who hope to profit from such changes.
FALLING WEDGE: An Area Pattern with two downward slanting, converging trendlines. Normally, it takes more than 3 weeks to complete, and volume will diminish as prices move toward the apex of the pattern. The anticipated direction of the breakout in a Falling Wedge is up. Minimum Measuring Formula: a retracement of all the groundlost within the Wedge. (See also Wedge.)
FALSE BREAKOUT or FALSE SIGNAL: A breakout which is con?rmed but which quickly reverses and eventually leads the stock or commodity to a breakout in the opposite direction. Indistinguishable from premature breakout or genuine breakout when it occurs.
FAN LINES: A set of three secondary trendlines drawn from the same starting high or low, which spread out in a Fan shape. In a Primary Uptrend, the fan would be along the tops of the Secondary (Intermediate) Reaction. In a Primary Downtrend, the fan would be along the bottoms of the Secondary (Intermediate) Rally. When the third
Fan Line is broken, it signals the resumption of the Primary Trend.
FLAG: A Continuation Pattern. A ?ag is a period of congestion, less than 4 weeks in duration, which forms after a sharp, near vertical, change in price. The upper and lower boundary lines of the pattern are parallel, though both may slant up, down, or sideways. In an uptrend, the pattern resembles a Flag ?ying from a mast, hence the name. Flags are also called Measuring or HalfMast Patterns because they tend to form at the midpoint of the rally or reaction. Volume tends to diminish during the formation, and increase on the breakout. Minimum Measuring Formula: add the distance from the breakout point, which started the preceding “Mast” rally or reaction, to the breakout point of the Flag.
FLOATING SUPPLY: The number of shares available for trading at any given time. Generally, the outstanding number of shares less shares closely held and likely to be unavailable to the public. Shares of a company held by its employee pension fund, for example, would not generally enter the trading stream and could be subtracted from the outstanding shares.
FUNDAMENTALS: Information on a stock pertaining to the business of the company and how it relates to earnings and dividends. In a commodity, it would be information on any factor which would affect supply or demand.