PSX Algos · Learn
Understand the Pakistan Stock Exchange
The indices, market mechanics, and trading indicators that move the PSX — defined clearly, with worked examples, and linked to strategies you can build and backtest.
Indices
KSE-100 Index
The KSE-100 is the Pakistan Stock Exchange's benchmark index, tracking 100 of the largest companies by free-float market capita…
KSE-30 Index
The KSE-30 is a Pakistan Stock Exchange index that tracks the 30 most liquid companies using a pure free-float methodology — a…
KMI-30 Index
The KMI-30 is the Pakistan Stock Exchange's benchmark for Shariah-compliant stocks — 30 companies that pass Islamic screening,…
KSE All-Share Index
The KSE All-Share Index is the Pakistan Stock Exchange's broadest benchmark — it includes every eligible listed company, not ju…
Market structure
Free-Float Market Capitalisation
Free-float market capitalisation is the value of only the shares a company has available for public trading — its total market…
Settlement Cycle (T+1)
The settlement cycle is how long after a trade the shares and cash actually change hands. On the Pakistan Stock Exchange this i…
Indicators
RSI (Relative Strength Index)
RSI is a momentum indicator on a 0–100 scale that shows whether a stock has been bought or sold too hard recently — below 30 is…
MACD
MACD is a momentum indicator built from two moving averages of price. It turns the gap between them into a line and a signal li…
SMA vs EMA
A moving average smooths choppy prices into a single trend line. A simple moving average (SMA) weights every day equally; an ex…
Bollinger Bands
Bollinger Bands wrap a stock's price in an upper and lower band set a couple of standard deviations from its 20-day average — t…
ATR (Average True Range)
ATR measures how much a stock typically moves in a day, in rupees. It is a plain volatility gauge — used mostly to size stops a…
Strategies
Golden Cross
A golden cross happens when a stock's 50-day moving average rises above its 200-day moving average — a widely watched sign that…
Mean Reversion
Mean reversion is the idea that a price stretched far from its recent average tends to snap back toward it — so traders buy whe…
Momentum Breakout
A momentum breakout strategy buys a stock as it pushes above a recent high on heavy volume, betting that the burst of strength…
Bollinger Squeeze
A Bollinger squeeze looks for a quiet period when a stock's price range tightens sharply, then trades the breakout that often f…
MACD Crossover
A MACD crossover strategy enters when the MACD line crosses above its signal line — a momentum trigger that traders use to catc…