Test
Test is term used in technical analysis, used to show price potential to break trough certain levels.
When a stock price approaches support or resistance level set by the market, technical analysts will watch out to see will the stock stay within that level or it will reach new high or low. If the stock remains within stop or resistance level the test is passed, however, if the stock breaks the level and reaches new high or low, the test failed.
The test is used to identify the right moment to enter or exit a position in a stock.
| Related Terms: Tick Test |