Saturday, August 29, 2009

Convergence trading strategy

A convergence trading strategy is a trade idea based on the principle that when the price of a stock (or stock portfolio) significantly deviates from its long-term trend, it will sooner or later converge (move back) back to its original trend. For example, a trading strategy that generates a buy signal at every dip of the stock price in a general up trend is a convergence trading strategy. Interesting

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