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Raja Dey
@iRajaDey
, 7 tweets, 3 min read Read on Twitter
This is what each "Moving Average" means in trading and how to use them.

#Trading #StockMarket .@NSEIndia .@BSEIndia .@moneycontrolcom
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5-Day EMA: This is a sign of strong momentum. It tracks the trend in the short term frame. This is support in the strongest low volatility up trends. A break back above this line is a sign for me that an uptrend may be resuming. I primarily use it as an end of day trailing stop.
10-Day EMA: A great moving average to use to keep you on the right side of the major market trend. It is the first line to be lost before any real trouble begins. It can be used as a standalone signal that tend to trend strongly in one direction for long periods.
21-Day EMA: This is the intermediate term moving average. It is generally the last line of support in a volatile uptrend. To me, it is the inevitable reversion to the mean in a market when it finally pulls back after an extended trend.
50-Day SMA: This is the line that strong leading stocks typically pull back to. This is usually the support level for strong uptrends. It is normal for up-trending markets to pull back to this line and find support. It is generally a great “Buy The Dip” level.
100-Day SMA: This is the line that provides the support between the 50-day and the 200-day. If it does not hold as support, there is a high probability that the 200-day SMA is the next stop. It usually presents a great risk/reward ratio in bull markets.
200-Day SMA: Bulls like to buy dips when markets are trading above the 200-day moving average, while bears sell rallies short below it. This line is one of the biggest signals in the market telling you which side to be on. Bull above, Bear below.
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HMK alias MANOJ
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#TRADING Intraday Trading Setup 2 : Pivot - VWAP setup
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Anandita Jain
@jain_anandita
[1] Double Crossover Moving Average is a trading strategy that uses two moving averages, a shorter term EMA and a relatively longer term EMA as indicators to identify buying and selling points. Intuitively, a longer term (LT) EMA would be smoother and would not hug the prices..
[2] .. as closely as a shorter term(ST) EMA. However, there are points where both these curves meet called crossover points and are buy/sell decision points. When an ST EMA is below the LT EMA and is rising, the following crossover point is a buy signal. The rationale is that the
[3] ..recent prices are higher than the average price over the longer term. The LT EMA is slower than the ST EMA(has more lag) as it takes into account the past prices over a longer period of time. Hence, the 2 EMA would cross when the price is in momentum and this would give..
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Anandita Jain
@jain_anandita
[1] A variation of SMA is Exponential Moving Average (EMA) with the differentiating factor being the weight put on recent prices observed. SMA weighs all prices equally as compared to EMA which weighs the recent prices with a multiplier. The period used for this needs to be...
[2].. chosen carefully as it has an affect on the multiplier which inturn weighs the prices. So say, a period of 10 days is taken; Multiplier = 2/(n+1); n being 10 here
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#Chapter2 : Trend Trading .

Traders first priority is to take a trade basis the trend. Trend in simple terms means, following the direction of the Market.

Which also means, being with the forces who create the direction, who drive the prices, who move the market, SmartMoney.
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NYDOUGH
@NYDOUGH
2/
 MOVING AVERAGES
I study the slope, the distance it is from price action, and its correlation to some other moving averages, particularly the 10 and 50 day. For instance, where the 50 in particular is in relation to the 200 day moving average determines the phase of the overal
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Longer moving averages like the 200 lag. They tend not to predict price direction, but rather reflect current direction. Therefore, when you hear "the trend is your friend," technically put it really means that the price over the last 200
4/
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Simple moving average (SMA)

Definition
The simple moving average is an arithmetic mean of price data. It is
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