test

test 1   (těst)    n.   A procedure for critical evaluation; a means of determining the presence, quality, or truth of something; a trial: a test of one's eyesight; subjecting a hypothesis to a test; a test of an athlete's endurance. A series of questions, problems, or physical responses designed to determine knowledge, intelligence, or ability. A basis for evaluation or judgment: "A test of democratic government is how Congress and the president work together" (Haynes Johnson). Chemistry A physical or chemical change by which a substance may be detected or its properties ascertained. A reagent used to cause or promote such a change. A positive result obtained. A cupel. v.   test·ed, test·ing, tests v.   tr. To subject to a test; try: tested the pen by scribbling on scrap paper; testing job applicants. To determine the presence or properties of (a substance). To assay (metal) in a cupel. v.   intr. To undergo a test. To administer a test: test for acid content; test for the presence of an antibody. To achieve a score or rating on tests: tested high on the entrance exams. To exhibit a given characteristic when subjected to a test: test positive for the tubercle bacillus. [Middle English, cupel, from Old French, pot, from Latin testū, testum.] test'a·bil'i·ty n., test'a·ble adj.

Test

In technical analysis, it is when a stock price approaches a support or resistance level set by the market. If the stock stays within the support and resistance levels, the test is passed. However, if the stock price reaches new lows and/or new highs, the test has failed.

Investopedia Commentary

To test whether a stock price will break a support or resistance level, technical traders will typically use specific stock-charting programs designed to track price movements to identify when to buy or sell a position.

Related Links

Introduction To Technical Analysis
Support & Resistance Basics
Support and Resistance Zones - Part 1
Support and Resistance Zones - Part 2
Backtesting: Interpreting the Past

See also: Back Testing, Long, Position, Resistance, Short, Support, Technical Analysis

test

The attempt by a stock price or a stock market average to break through a support level or a resistance level. For example, a stock that has declined to $20 on several occasions without moving lower may be expected to test this support level once again. Failing to fall below $20 one more time would be considered a successful test of the support level and a bullish sign for the stock.

Main Entry: ¹test
Pronunciation: 'test
Function: noun
1 : a critical examination, observation, evaluation, or trial; specifically : the procedure of submitting a statement to such conditions or operations as will lead to its proof or disproof or to its acceptance or rejection test of a statisticalhypothesis>
2 : a means of testing: as a (1) : a procedure or reaction used to identify or characterize a substance or constituent test for starchusing iodine> (2) : a reagent used in such a test b : a diagnostic procedure for determining the nature of a condition or disease or for revealing a change in function—see BLOOD TEST, DICK TEST, PATCH TEST, TUBERCULIN TEST, WASSERMANN TEST c : something (as a series of questions or exercises) for measuring the skill, knowledge,intelligence, capacities, or aptitudes of an individual or group —see INTELLIGENCE TEST, PERSONALITYINVENTORY
3 : a result or value determined by testing

test (těst)
n.

1. A procedure for critical evaluation; a means of determining the presence, quality, or truth of something; an examination, or experiment.

2. A physical or chemical change by which a substance may be detected or its properties ascertained.

3. A reagent used to cause or promote such a change.

v. test·ed, test·ing, tests

1. To subject to a test; try.

2. To determine the presence or properties of a substance.

3. To administer a test.

4. To exhibit a given characteristic when subjected to a test.

test testing
The process of exercising a product to identify differences between expected and actual behaviour. Typically testing is bottom-up: unit testing and integration testing by developers, system testing by testers, and user acceptance testing by users.
Test coverage attempts to assess how complete a test has been.
2. The second stage in a generate and test search algorithm.
[The Jargon File]
(2003-09-24)

test

see acid test; put to the test.

TEST Telemedicine and Education Support Team