Skip to content
1492 terms

Glossary

Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.

Showing 8 terms

CCI

Technical analysis
Also 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 analysis

Horizontal 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 basics

Cover 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 analysis

The 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 analysis

Buying 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 basics

The 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 analysis

The 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 analysis

A 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 →
Indian stock market glossary · Market Vidyalaya