P1:a/b P2:c/d QC:e/f T1:g
gloss JWBK182-McDowell April 25, 2008 16:35 Printer: Yet to come
Glossary
accumulation distribution (A/C) A momentum indicator that attempts to gauge
supply and demand by determining whether traders or investors are accumulating
(buying) or distributing (selling) a certain financial instrument by identifying diver-
gences between price and volume flow.
American Stock Exchange (AMEX) The second-largest stock exchange in the
United States after the NYSE. Generally, the listing rules are more lenient than
those of the NYSE, and therefore the AMEX has a larger representation of stocks
and bonds issued by smaller companies. It is located in New York City.
annual percentage rate (APR) The periodic rate times the number of periods in a
year. Example: a 5 percent quarterly return has an APR of 20 percent.
Applied Reality Trading©R(ART©R) Applied Reality Tradingis a technical analysis
system developed by Bennett A. McDowell that focuses on trading the realities of
the financial markets. TheARTsoftware works on any time frame and in any mar-
ket for both investors and day traders. The software generates charts that illustrate
clear entry and exit signals and sound money management rules.
APR Seeannual percentage rate.
ARTbear price bar When prices close on thelowerhalf of the bar, it is anART
bear price bar. The bar is defined by the relation between thecloseand the price
bar interval. The bears are in control at the close of the price bar. (ARTdetermines
bear and bull differently than other systems.)
ARTbull price bar When prices close on theupperhalf of the bar, it is anART
bull price bar. The bar is defined by the relation between the close and the price
bar interval. The bulls are in control at the close of the price bar. (ARTdetermines
bear and bull differently than other systems.)
ARTelongated price bar This price bar is at least one-third longer than the pre-
vious three to five price bars.
ARTinside price bar A compressed price bar forming directly after the signal bar
in anARTreversal. It can be used to aggressively enter anARTreversal trade.179