Dark Cloud Cover: A reversal pattern that is bearish in nature, and continues the uptrend with a long white body. The next day (or candle), it opens at a new high then closes below the midpoint of the body of the first day (candle).
Day Trading: A trading style where all positions are closed before the end of the trading day.
Death Cross: A crossover in which the shorter moving average crosses the longer moving average to the downside. The term is typically associated with moving average crossovers.
Declining: Downtrending with lower highs and lower lows.
Demand Line: See Trend Lines.
Descending Triangle: A bearish continuation pattern between two converging trend lines, where the upper trend line is descending and the lower line is flat. Generally a bearish pattern.
Distribution: Systematical selling of a stock without affecting price significantly. After a leg up move, price action may form a top and begin to trade sideways for a while. As the top forms, distribution occurs as traders or investors unload positions.
Divergence: A scenario where two lines on a chart move in opposite directions, or diverge from one another. A common practice used to find divergences is to compare a stock’s price action to the action of the RSI or MACD. A positive (bullish) divergence occurs when the indicator moves higher while the stock is declining. A bullish divergence is said to forecast an increase in price. A negative (bearish) divergence occurs when the indicator moves lower while the stock is rising. A bearish divergence is said to forecast a decrease in price.
Doji: A Doji is a candlestick chart candle that is created as a result of the opening and closing price within in a single time period (minute, 5 min, 15, 30, hourly, daily, being the same. The Doji is considered a reversal indicator when presented near the end of a trend, and also identifies a fairly even balance of buyers and sellers. More on the Doji.
Double Bottom: A bullish reversal pattern that forms with two consecutive lows that are roughly equal, a moderate push between the two, and a resistance break to the upside.
Double Top: A bearish reversal pattern that forms with two consecutive highs that are roughly equal, a moderate pull between the two, and a support break to the downside.
Dow Jones Industrial Average ($INDU): An average weighted on price consisting of 30 blue chip stocks published by Dow Jones & Co. Because it is price-weighted, stocks within the $INDU with highest prices have the most influence.
Dow Jones Transportation Average ($TRAN): Consists of 20 stocks within the transportation business. At first, the index only included railroads. However, it now consists of not only railroads, but also airlines and trucking companies.
Dow Jones Utilities Average ($UTIL): Used as a surrogate for bond prices. $UTIL is often a leading indicator of broad market trends since these stocks are sensitive to interest-rate changes. The reason being that utility companies typically have large amounts of debt, on which they pay interest and hold cash for capital improvements. As a result, they are affected by interest rate changes much sooner than other sectors.
Dow Theory: One of the oldest and most highly regarded technical theories in existence. According to the Dow Theory, a buy signal is identified by the Dow Industrial ($INDU) and Dow Transportation ($TRAN) averages closing with a higher high. A sell signal is given when both averages close with a lower low.
Down Trend line: Also see Supply Line. Defined as a straight trend line drawn down and to the right connecting the peaks of each high. The longer the down trend line and the more times it has been tested, the more respected and significant it becomes. A break to the upside of the down trend line signals a reversal of the downtrend.
Downside Tasuki Gap: A continuation pattern consisting of a long red body followed by another red body after a gap down from the first. The third candle is green and opens within the body of the previous red candle, and closes at a level that fills the gap between the first two candles.