The Ultimate Guide to moving averages !
A mega thread to understand the Use of 21 , 50 and 200 ema.
4 Effective uses of Exponential Moving Averages !

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#stockmarkets #nifty
@kuttrapali26 @caniravkaria
Once Can refer the use of Moving Averages Throught this thread 🔖
4 Popular uses of moving averages

1. Identifying the direction of trend
2. MA crossover
3. Dynamic Support and Resistance
4. Price Crossing above Key EMAs

Note : In chart 21 ema is red , 50 ema is green and 200 ema is black

2/n
Why EMA and not SMA ?
EMA is fast , accurate and prices in recent data !
3/n
Use 1 : Identifying the trend of stock on dtf

The 21 ema will tell us the Short term trend of a stock , while the 200 ema will tell us the long term trend of a stocks

Any EMA that is sloping
:upwards trend is BULLISH
:sideways trend is NEUTRAL
:downwards trend is BEARISH
4/n
MOVING AVERAGES SIDEWAYS:

When Moving averages turn flat means the stock is in consolidation and is in sideways zone .
Generally this occurs after an uptrend or downtrend and may lead to continuation of previous trend .
This is generally no trading zone for swing traders
5/n
1. Whenever ema is sloping upwards its called uptrend
2. Whenever ema is sloping downwards its called dowtrend
3. Whenever ema is sideways its called consolidation
⏫Buy in uptrend
⏬Sell in downtrend

Whenever stocks move too away from ema it is extended and pullsback
6/n
EMA CROSSOVER
1. Whenever the 21 ema crosses 50 ema from down to up short term trend changes from bearish to bullish and vice versa.
2. The 21 Should be above 50 ema for uptrend and below 50 ema for downtrend
Ex:
7/n
Crossover rules:
Crossover shouldnt be traded solely as it can lead to multiple signals of buy and sell ,always use confirmation of volume , price etc to take trade .
During consolidation you will get many signals and hence its not advised to use during sideways trend

8/n
50 and 200 ema crossovers

50 cutting 200 from down : Golden Cross
50 cuttinf 200 from up : Death Cross

The Long term trend changes when DEATH CROSS happens and its one of the most dangerous situations
Price falls raidly after the Death Cross
9/n
DYNAMIC SUPPORT AND RESISTANCE
1. 21 ema Dynamic support for trending stocks in short term
2. 50 ema dynamic support for mid term
3. 200 ema dynamic support for long term

Examples Explained !
10/n
PRICE CROSSING AVOVE 200 EMA
200 EMA : THE LONG TERM TREND
1. When a stock price crosses its 200-day moving average, it is a technical signal that a reversal has occurred.
11/n
3. A simple rule of not buying stocks below 200 ema for short term trading could save a lot of money
4. One may consider investing in stocks if the stock is below 200 ema only if he is confirmed about the fundamentals of the stock
5. Some may not agree with this and its ok!

12/n
WEEKLY 200 EMA : VERY LONG TERM VIEW:
1. If you use 200 ema on weekly timeframe you can be in a trend for a very long time
2.The sell signs will be given late as we are using weekly timeframe
@rohanshah619 @Puretechnicals9
13/n
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More from @JayneshKasliwal

1 Dec
Top 6 Rules of #PaulTudorJones
Who is Paul Jones ?
Paul Tudor Jones II is an American billionaire hedge fund manager, With net worth of around $8 Billion .
Famously known for predicting the Black Monday in 1987, during which he tripled his money on his large short positions
1."Look for tremendously skewed reward-risk opportunities"
Rather than focusing on win rate , Focus on Risk Reward
A risk Reward > 1:2 is always favourable for trader
2. “There is no training, classroom or otherwise, that can prepare for trading the last third of a move, whether it’s the end of a bull market or the end of a bear market.”

No Strategies can be copied , until the trader himself has his own observation and experience and applies
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WHY STOP LOSS OF 8% ?

To make money in stocks, you must protect the money you have. Live to invest another day by following this simple rule: 

Always sell a stock if it falls 7–8% below what you paid for it. This basic principle helps you cap your potential downside.
1/n
And it is the simplest way to make sure you never let a small loss become a BIG one.

Why 7–8%?
The 7–8% sell rule is based on an ongoing study covering over 100 years of stock market history. Even the best stocks will sometimes breat out and then drop slightly below their buy
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When they do, they typically do not fall more than 8% below it. If your stock does decline more than 8%, it usually means something is wrong with your chosen entry point, the company, its industry, the general market, or all of the above.

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The Heikin Ashi Trading Strategy !

A thread for Swing and Positional Traders who love Reversals !

Retweet And Share 🔄
@kuttrapali26 @AmitabhJha3
What is Heikin Ashi ?
Go through this Tweet for complete understanding

1/n
Tools used
1. HeikinAshi charts
2. 200 ema (black)for Dynamic support and reversal point
3. 21 ema(red) for trailing stop loss
4. Volumes
5. Your own confirmations and modification

2/n
Read 12 tweets
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What is HEIKIN ASHI i and How You
Use it ?

A Small Thread
Understand New type of Price Representation on charts.
Maximum Retweet and Share !
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@kuttrapali26 @rohanshah619
What is Heikin Ashi?
1. Heikin-Ashi, also called Heiken-Ashi, is translated as an "average bar" in Japanese.
2. The Heikin Ashi strategy is a useful tool used in identifying market trends and
predicting the future prices of assets.
2/N
3. The Heikin Ashi can be used alone or in conjunction with candlestick charts.
4. These charts can be very useful as they make it easier to read candlestick charts
and analyze market trends , without noise
3/n
Read 10 tweets
22 Nov
A thread on how to draw trendlines!

Confused between connecting wicks or bodies while drawing a trendline ?
Our main aim to draw trendline is to get maximum points of price on a line .
It can be through wicks tails or body and there is no fixed rule !

RETWEET SHARE🔄 !
1/n ImageImageImageImage
Trendline as Trailing Stop Loss.
1. Trending stock Tends to pullback near Moving averages and trendlines .
2. This could be areas of fresh buying or you can shift your Stop loss to upside
3. As soon as trendline is broken then you can sell a stock and take reverse position

2/n ImageImageImage
Trendline as Trendreversal
1. You can Buy breakouts of trendline in a downtrend
once the trend is changed with emergence of HH HL structure
2. You can initiate long postion with Stop at previous swing low
3. Sometimes you may find retest on trendline also

3/n ImageImageImage
Read 6 tweets
18 Nov
Selecting Stocks For Intraday
A Thread For Weekend 🔖
How to Top Down Approach
Basic Stock Selection
RETWEET SHARE ! 🔄
#StockMarket
@kuttrapali26 @rohanshah619
1/n
Manual Stock Filteration WHY?
1. Doing manually requires a lot of effort and time , so it can be tiring.
2. You will gain edge over finding stocks if you do it regularly
3. After your own analysis you gain confidence, that will help you in more successful trading
2/n
Watchlist:
Picking Random Stocks Or FnO stocks Is a option
Midcaps and Smallcaps with High Liquidity will Provide high volatilityfor trades
Having stocks from all
sector and all sizes
Always have sectors in your intraday
watchlist
That will increase your winning ratio
3/n
Read 14 tweets

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