Moving Averages Full guide 🧵
How to use them ? Which one is best ? What I use ?
Also I share free PDF on price cycle BO trading
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First let us go through 2 cases of how moving averages are used
1) For finding trend - Prices are volatile on day to day, week to week basis to smooth them MA are used . It tells clear direction of the trend without getting lost in volatility (1/n)
Look in 1 chart it's only Prices & 2nd one with only MA. Things look neat in 2nd one (2/n)
2) Support areas -
Moving averages are used as support areas for adding up stock.
As stock picks up trend it usually takes support in between towards the key moving averages. Example below - Deepak Nitrite taking support of 10 week EMA as it runs up
These 2 are the most important use of moving averages Now we will look at different MA and which one is best