BC TA
Saved by @TraderYogi999

Moving Averages is a common indicator which most of us (novice/professional) use in the stock market for trading and investment.

This learning thread would be on
"π™π™¨π™šπ™¨ 𝙀𝙛 π™ˆπ™€π™«π™žπ™£π™œ π˜Όπ™«π™šπ™§π™–π™œπ™š"

LikeπŸ‘ & RetweetπŸ”„ for wider reach and more such learning thread.

1/10

 Basics of the moving average:

It takes average of the price for the duration we want.

So 10 days moving average means an average price of 10 days closing price.

Common types of Moving Average:
Simple, Exponential, Weighted.

Use only one type in your trading setup.

2/10
Different uses:

1⃣ Moving Average Crossovers:

Common strategy used by positional traders and investor in finding multibagger or good returns stocks.

Common crossover used is for 50 & 200 Moving Average.

Also, this is called as "π—šπ—Όπ—Ήπ—±π—²π—» π—–π—Ώπ—Όπ˜€π˜€π—Όπ˜ƒπ—²π—Ώ"

3/10
In this buy signal is initiated when lower MA (50 EMA) crosses above higher MA (200 EMA).
And exit or sell signal is intiated when lower MA (50 EMA) crosses below higher MA (200 EMA).

4/10
Let's see an example:
Pidilite Industries

Buying Price was 56 in 2009 and CMP is 2462 and still there is no selling signal.

44 times Multibagger or 4300% returns.

In lower time frame, it will give more whipsaw and more number of trades.

5/10
Setup looks easy, but is not that easy.

Sometimes stock stays in consolidation and it gives frequent buy and sell signal as seen in Airtel.

One way to avoid this noise is to use price action and look for the breakouts and then trade.

6/10
2⃣ Support or Resistance

Moving averages can act as support or resistance to stocks.

Let's look at an example where it acted as a support.

In #IEX chart, 100 Days EMA acted as a support multiple times.
Also, a live trade was shared on IEX:
https://t.co/CXa5CM4pnP

7/10
Let's look at an example where it acted as a Resistance.

Suzlon:

Stock faced resistance at 100 days EMA and it kept going down after EMA level.

Stock went down from 105 to 20 in two years.
8/10
3⃣ Finally Moving Average can be used as a Stoplosses.

~ For a buyer, if price closes below a crucial moving average, then buy position is closed in stocks.

~ For a seller, if price closes above a crucial moving average, then short position is closed in stocks.

9/10
I hope everyone got a taste of how moving average can be used.

These are not a universal rules one must follow. One can create their rule or follow someone else rules.

Only important thing is one must follow a fix rule instead of tweaking or changing setup frequently.

10/10

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Here is the list of top 7 Free Strategy and its respective screeners that I use:

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@RijhwaniSheetal
How to find out the expected targets and what should be the exit criteria when you enter a trade - 🧡

Possible ways to find out the target:

Check if any patterns forming - it gets quite easy to figure out the targets that way. (1/15)

Let's say cup and handle. Our first target in this case will be the height of the handle and final target will be height of the whole cup. It's the same with H&S. First target will be the height of the shoulder and final will be the height of the head. (2/15)

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How to set Small Stop loss ??

PleaseπŸ‘‡

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4️⃣ Hourly chart - 15 minutes LL

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Finding swing trading setups using Anchored VWAPs and Volume Shelf - A Thread πŸ‘‡

Anchored VWAP is the average price people paid from a specific anchor in the chart. Bulls and bears do not want stock to cross the average price they paid to buy/sell it!

$SPY $AFRM $V
(1/n)


Let's take an example of a bull run. When a breakout happens, or a reversal happens, or a rally begins, people start buying! We can assume such points as our anchor points!

Now as long as price stays above their average price, they are happy!

But what if it comes down!
(2/n)

If it comes down, those bulls might start buying again because anytime price will go below the anchored vwap from their initial buy point, they are in loss. THIS IS IMPORTANT!

They do not want to go in loss, so they start buying again pushing the price higher.
(3/n)

This is useful to know for everyone! Let's also couple this with something called a volume shelf.

Volume shelf shows you areas where most shares were traded. Similar to AVWAP, when price starts to cross below the shelf, bulls will step in because they are going in loss.
(4/n)

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For a bullish swing trade, our task is to now find setups that are on anchored VWAP supports + volume shelf supports.
(5/n)
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J A C K I S
J A C K I S
@jackis_trader
Moving Averages πŸ“š

πŸ’ŽSECRET INFO inside

🧠Great for both beginners & advanced traders

β–ͺ️ What are they?
β–ͺ️ Types of MAs
β–ͺ️ Why are they such a powerful tool?
β–ͺ️ How to properly use them?
β–ͺ️ My best SECRET EMA value?
β–ͺ️ Which Timeframe to use?
β–ͺ️ Advanced EMA technique?

1/20


β–ͺ️ What are they?

Moving average is nothing more than an average price of the last (value) of candles.

If we are gonna use an example of MA(50) it is gonna be the mean price of the last 50 candles

General rule:
Price above = Bullish πŸ‚
Price below = Bearish 🐻

2/20


β–ͺ️ Types of Moving Averages

1) Simple Moving Average - SMA
2) Exponential Moving Average - EMA
3) Smoothed Moving Average - SMMA
4) Volume Weighted Average Price - VWAP

There are a few more but these are the most important in my opinion.

3/20


I won't be going that much into detail about each of them in this thread but more so covering MAs in general.

The important takeaway is there are many methods of calculations and each offers bit different pros & cons

I'll leave experimenting with each of them up to you

4/20

β–ͺ️ Why are they such a powerful tool?

Because they help everyone, even newbies, that are just starting out, to easily & visually clearly identify trends without understanding the advanced Market Structure techniques.

Price above = πŸ‚

5/20

https://t.co/g5SneLNPh5
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