How to use the Convergence Tool?


Introducing the Convergence Tool from StockArchitect

What is convergence?

In simple terms when different moving averages are in a range of 1%, convergence is said to have occurred. In the Convergence Tool, we are using 4, 9, 18, 50 and 200 DMA (daily moving average) to determine convergence.

After you have subscribed to the convergence tool (or during the 7 day free trial period as the case maybe), you will see this screen below:

As you can see we work on 4, 9, 18, 50 and 200 MA.

The “Within Range” column displays 2 values

  1. Yes which means a convergence of 5
  2. No (4) or No (3) which means convergence of 4 or 3 respectively.

How do I make use of the data displayed by the Convergence Tool?

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stockarchitect August 16, 2018

Convergence / DMA / Learning / Tool / Usage /

How to avoid disastrous stock declines


A common phenomenon that happens to all investors. Having bought a stock, how do we handle declines? Here are a few thoughts and ideas posted from the blog post that originally appeared here. While these may be talking about US stocks, the underlying philosophy applies to all investors be they in New York or London or Singapore or even in Mumbai.

  • Avoid falling in love with a company or its stock. The emotional attachment will cloud your judgement and prevent you from making sound decisions in the market. The “pet stock” phenomenon occurs more often than you may think.

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stockarchitect March 23, 2016

charts / decline / DMA / price / Stock / strategy /