Every Term You'll See on PSX Invest, Explained

A buy/sell/hold recommendation generated when Google Gemini AI reads technical data and assigns confidence ≥ 70. Shown as an opportunity type on PSX Invest.

Average True Range — measures how much a stock moves on average each day. Higher ATR = more volatile stock. Useful for setting stop-loss distances.

A period of sustained price declines — typically defined as a 20%+ fall from recent highs. Opposite of a bull market.

Measures how much a stock moves relative to the broader market (KSE-100). Beta > 1 means more volatile than the index; Beta < 1 means less volatile.

Price envelope drawn at ±2 standard deviations from a 20-day SMA. Price touching the upper band may signal overbought; lower band may signal oversold.

A company's total assets minus total liabilities, per share. If the stock price is below book value, the stock may be considered cheap.

When a stock price closes above a key resistance level — often the upper Bollinger Band — especially with a volume spike. PSX Invest detects this as a BREAKOUT opportunity.

When a stock price closes below a key support level — often the lower Bollinger Band. PSX Invest detects this as a BREAKDOWN opportunity.

A period of rising prices and optimism. KSE-100 bull runs are often driven by SBP rate cuts, IMF progress, or currency stabilisation.

Compound Annual Growth Rate — the year-over-year growth rate of a value (revenue, stock price) over a multi-year period. Smooths out year-to-year volatility.

Central Depository Company of Pakistan — the entity that holds your shares electronically. Every PSX investor needs a CDC sub-account opened through their broker.

A temporary trading halt triggered when a stock or the KSE-100 index moves by a set threshold in a single session. Prevents extreme panic selling or buying.

PSX Invest's 0–100 score fusing AI analysis and technical signals. We only generate alerts for confidence ≥ 70; ≥ 80 is considered a high-confidence signal.

Buying and selling a stock within the same trading session. Higher risk and requires more active monitoring — typically not recommended for beginners on PSX.

A cash or stock payment made by a company to its shareholders from profits. Common in Pakistan among banks, energy, and fertilizer companies (e.g., OGDC, FFC).

Annual dividend per share divided by current stock price, expressed as a percentage. Tells you the income return from holding a stock.

The peak-to-trough decline in a portfolio or stock. A 20% drawdown means the stock fell 20% from its highest point. Managing drawdowns is core to risk management.

Exponential Moving Average — a moving average that gives more weight to recent prices, making it more responsive to new information than a simple SMA.

Earnings Per Share — company net profit divided by number of shares outstanding. The higher the EPS, the more profitable the company is per share.

The cutoff date you must own a stock to receive the upcoming dividend. Buy on or after this date and you will not receive that dividend payment.

The number of shares available for public trading — excludes shares held by promoters and insiders. Low-float stocks tend to be more volatile on PSX.

Proportion of a company's total shares freely traded in the market. The KSE-100 Free-Float Index weights companies by their free float, not total market cap.

Buying a stock expecting its price to rise. The standard way retail PSX investors trade. Opposite of short selling.

Initial Public Offering — a company's first sale of shares to the public on PSX. IPOs must be subscribed through a broker and are often heavily over-subscribed on the exchange.

An index of the 30 largest Shariah-compliant stocks on PSX. Excludes companies with significant interest-based income, making it the benchmark for Islamic investors.

The flagship benchmark index of the Pakistan Stock Exchange comprising the top 100 companies by market cap. A positive KSE-100 day means the overall market rose.

Free-float-based index tracking the top 30 companies on PSX by free float market cap. More representative of liquid trading than the KSE-100.

An order to buy or sell a stock only at a specified price or better. Gives you price control but does not guarantee execution if the market never reaches your price.

How easily a stock can be bought or sold without moving its price significantly. High-liquidity PSX stocks (OGDC, HBL) can absorb large orders; penny stocks cannot.

The maximum percentage a stock price can fall in a single session before trading is halted. PSX uses a 7.5% lower circuit limit as a default for most stocks.

A bar chart showing the difference between the MACD line and Signal line. Positive bars = bullish momentum; negative bars = bearish momentum building.

Moving Average Convergence Divergence — calculated as EMA(12) minus EMA(26). A bullish crossover (MACD crossing above Signal line) suggests upward momentum.

Total market value of a company's outstanding shares (Share Price × Total Shares). Used to categorise stocks as large-cap, mid-cap, or small-cap.

An order to buy or sell immediately at the current best available price. Fast execution but price is not guaranteed — can slip in low-liquidity PSX stocks.

PSX Invest's composite score (-100 to +100) blending real-time intraday price data, daily analysis, and 3-day trend. Updated every 2 minutes during trading hours.

The rate of acceleration of a stock's price or volume. PSX Invest flags a MOMENTUM opportunity when price changes > 3% and volume > 1.5× the 30-day average.

National Clearing Company of Pakistan Limited — clears and settles all PSX trades. Responsible for ensuring the buyer receives shares and seller receives cash (T+2).

PSX Invest detects 8 signal types: BUY_OVERSOLD, SELL_OVERBOUGHT, BUY_MACD_CROSS, SELL_MACD_CROSS, BREAKOUT, BREAKDOWN, MOMENTUM, and AI_SIGNAL.

RSI > 70 indicates a stock has risen too fast relative to recent history and may be due for a pullback. PSX Invest generates a SELL_OVERBOUGHT signal in this zone.

RSI < 30 indicates a stock has fallen excessively and may bounce. PSX Invest generates a BUY_OVERSOLD signal in this zone with 75% base confidence.

Price-to-Earnings Ratio — stock price divided by EPS. A P/E of 10 means you are paying PKR 10 for every PKR 1 of earnings. Compare within sectors for PSX stocks.

Deciding how much capital to allocate to a single trade. A common rule: never risk more than 1–2% of your portfolio on any one signal.

Pakistan Stock Exchange — the national stock exchange created in 2016 by merging the Karachi, Lahore, and Islamabad stock exchanges. Headquartered in Karachi.

A price level where selling pressure historically overcomes buying pressure, causing the price to stall or reverse. A breakout above resistance is a bullish signal.

Potential profit versus potential loss on a trade. A 1:3 ratio means risking PKR 100 to potentially gain PKR 300. Target price and stop-loss define this on PSX Invest.

Relative Strength Index — oscillator (0–100) measuring speed and change of price movements. Below 30 = oversold; above 70 = overbought. Default period: 14 days.

A 9-period EMA of the MACD line. When MACD crosses above the Signal line, it's a bullish crossover. PSX Invest uses this for BUY_MACD_CROSS signals.

Simple Moving Average — the arithmetic mean of closing prices over a set period (e.g., 20-day or 50-day SMA). Identifies the overall trend direction.

A pre-set price at which you close a losing position to limit your loss. Every PSX Invest opportunity includes a suggested stop-loss level calculated from technical analysis.

A price level where buying demand historically overcomes selling pressure, preventing the price from falling further. A breakdown below support is a bearish signal.

Holding a stock for days to weeks to capture a price "swing." PSX Invest's SHORT and MEDIUM time horizon signals are designed for swing trading on PSX blue chips.

PSX settles trades two business days after the transaction date. Shares are credited to your CDC account and payment is transferred 2 working days after you buy or sell.

A pre-set price target at which you close a winning position to lock in gains. Shown as "Target Price" on PSX Invest opportunity cards.

Expected duration of an opportunity: SHORT (≤ 14 trading days), MEDIUM (15–45 trading days), LONG (46+ trading days). Derived from signal type, AI analysis, and confidence.

The maximum percentage a stock price can rise in a single session before trading is halted. PSX uses a 7.5% upper circuit limit as a default for most stocks.

Statistical measure of price dispersion — how much a stock's price fluctuates. Calculated as the standard deviation of log returns. Higher volatility = higher risk and higher reward potential.

The total number of shares traded in a session. Rising prices with high volume confirm a move; rising prices with low volume may be a false breakout.

When a session's trading volume exceeds 1.5× the 30-day average. PSX Invest requires a volume spike to confirm BREAKOUT and MOMENTUM opportunity types.

Your personalised list of PSX stocks tracked on PSX Invest. Opportunities, alerts, and the daily analysis cron only run for stocks on user watchlists.