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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 3 terms

Convergence

Technical analysis

A fast and a slow moving average narrowing towards each other — the movement MACD measures as its line returning towards zero.

In plain terms

The C in MACD, and the half people ignore. A narrowing gap means the driver has eased off while the car is still rolling forward.

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Correlation convergence

Risk & psychology

The tendency for correlations between holdings to move towards one during a severe market-wide decline.

In plain terms

Diversification helps least exactly when it is needed most, because in a panic people sell what they can rather than what they want to.

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MACD

Technical analysis

Moving Average Convergence Divergence — the gap between a fast and a slow EMA, plus a signal line and histogram.

In plain terms

Two averages arguing. The histogram turns first and is the most useful part.

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Indian stock market glossary · Market Vidyalaya