CCI
Technical analysisAlso called: Commodity Channel Index
Commodity Channel Index — how far price has deviated from its own average, expressed in units of mean deviation.
In plain terms
Unbounded, so ±100 are conventions rather than limits. Its better use is spotting the start of a strong move as it crosses +100 from below.
Read the full lesson →Fibonacci retracement
Technical analysisHorizontal levels at 23.6%, 38.2%, 50%, 61.8% and 78.6% of a prior swing.
In plain terms
Works mainly because enough traders place orders there. That is a real reason, not a mystical one.
Read the full lesson →Personal accident cover
Market basicsCover paying a prescribed sum on death or disablement, required alongside a motor policy for the owner-driver subject to conditions.
In plain terms
Commonly duplicated across several policies without anyone noticing, because it arrives attached to something else rather than being bought deliberately.
Read the full lesson →Golden ratio
Technical analysisThe proportion 0.618, which consecutive Fibonacci ratios converge on, and the source of the 61.8% retracement level.
In plain terms
No mathematical constant governs a share price. The level works because a great many traders and algorithms place orders there — a genuine reason, simply not a mystical one.
Read the full lesson →Pullback entry
Technical analysisBuying a temporary decline within an established uptrend, at a moving average or Fibonacci retracement, on a bullish reversal candle.
In plain terms
The best risk-reward of the common templates, because the stop sits just under a nearby low. Skip it when the pullback arrives on heavier volume than the advance — that is distribution.
Read the full lesson →Credit risk
Market basicsThe risk that a borrower in a portfolio fails to pay.
In plain terms
Sudden and usually permanent. This is the risk that has caused real Indian debt fund accidents.
Read the full lesson →Indicator redundancy
Technical analysisThe condition in which several indicators appear to confirm one another while being different arrangements of the same underlying price data.
In plain terms
RSI, Stochastic, Williams %R, CCI and the MACD histogram all agreeing is one opinion reported five times. New information has to come from a different input — volume, breadth, relative strength.
Read the full lesson →Market neutral
Technical analysisA position constructed so that its outcome depends on the relationship between two instruments rather than on the direction of the market.
In plain terms
Neutral only while both legs are held at equal rupee exposure. Size by share count instead and you have taken a directional bet by accident.
Read the full lesson →