Glossary
- Debenture
A debenture is an instrument indicating the indebtedness of a company. It is not secured by assets or property, but only the credit of the issuer. Investors should also consider examining Technical Analysis for the underlying stock when researching convertible debentures. Technical Analysis may be considered less indicative for non-convertible debentures. Technical Analysis should be used as one piece of additional information within additional research regarding these instruments.
- Divergence
A situation in which the price of an asset and an indicator, index or other related asset move in opposite directions. In technical analysis traders make transaction decisions by identifying situations of divergence, where the price of a stock and a set of relevant indicators, such as the money flow index (MFI), are moving in opposite directions.
- Doji Lines
A Doji Line is a type of candlestick line which depicts a situation in which the open and close prices are the same (or almost the same). Different varieties of doji lines (such as a gravestone or long-legged doji) depend on where the open and close are in relation to the entire range. Doji lines are among the most important individual candlestick lines as many times they predict a shift in, or even a reversal of a current trend. Doji lines often predict a shift in, or a reversal of a current trend.
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