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Rachit Jain @rachitpjain
, 15 tweets, 5 min read Read on Twitter
#MovingAverages thread..
One of the basic tool trader use.

(Read thread & retweet if you like)
There are two basic types of moving averages – the simple moving average (SMA) and the exponential moving average (EMA).  (2/n)
The simple moving average is a simple average of a price movement over time. The exponential moving average on the other hand gives greater weight to more recent price action. (3/n)
Each trader must decide which MA is better for his or her particular strategy. (4/n)
Many shorter-term traders use EMAs because they want to be alerted as soon as price is moving the other way. Longer-term traders tend to rely on SMAs, since these investors aren't in rush to act and prefer to be less actively engaged in their trades.
Ultimately, it comes down to personal preference. Plot an EMA and SMA of the same length on a chart and see which one helps you make better trading decisions. (6/n)
#Strategies of Moving Average

There are several strategies based on MA but the most popular can be classified as price crossover and moving average crossover. (7/n)
#PRICECROSSOVER Simplest moving average strategy is buy when price goes above ma and sell when price crosses below the ma. (8/n)
In this strategy, MA is not correlated with price but with other MA. Signal is generated when short period MA crosses long period MA.
Sell Signal : when short period ma crosses below the long period ma and viceversa.
No system is holy grail unless u learn the importance of it, concluding moving average subjective and to get best result you have to apply it with other technical knowledge to get best results.
9% UP...
1400 to 1430....#movingaverage...
#SHREECEMENT A simplest example of #movingaverage how 50EMA acted as support & resistance...
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