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The Traders Spread

Auto – Correlation

The correlation of changes in a single variable over different time periods. If a price is negatively auto-correlated, a negative move down in one period would suggest a positive move up in the next, and vice versa. If it were positively auto-correlated, a negative move would suggest a negative move in the upcoming period, and vice versa.

More terms under A

Part of the Trading glossary. Definitions are general explanations, not investment advice.