Moving Averages Full guide ЁЯз╡

How to use them ? Which one is best ? What I use ?

Also I share free PDF on price cycle BO trading

Do retweet & like !

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
1. Simple moving average -This is the slowest MA's. If you are using 10 day SMA then you take closing price of last 10 sessions & divide it by 10. Join the dots by line
It creates lag as it turns up/down slowly giving same weight to old & new prices which gives late signals (5/n)
2) Exponential MA - This is a faster moving average and it gives more weight to the current prices, hence they turn faster than SMA, giving signals faster.

Eg - In this pic black is SMA & blue is EMA
Look how EMA stays ahead of SMA & aligns fast with current prices (6/n)
3) Double EMA - This is more filtered form of EMA where the latest price is given double weight compared to what given in EMA . So this moves even faster than EMA. Below is EMA vs double EMA. Effectively a 5 DEMA = 10 EMA (7/n)
4) Triple EMA - Just like in DEMA the recent prices are given double weight, here it is giving triple weight, hence triple EMA
below is all EMA v/s DEMA v/s TEMA

High to low TEMA>DEMA & EMA
Now the question comes which MA are best ?

I will answer that in below tweets now. Do like if you like till now
Using SMA - I use 50 SMA as this is used by institutions as buying area as the stock moves ahead.

Eg Deepak Nitrite, Balaji amines, LTTS

It's always a area near to 50 SMA - not exactly the line at which insti buys. On weekly 50 day is 10 week
Using EMA - Most MA that I use is EMA

I use EMA 10/20/30 on all time frame i.e on daily, weekly & monthly

Each has its own purpose. Daily helps in swing, Weekly helps in Mid term trends & Monthly in trend following & LT investments. Below is 10/20/30 EMA on weekly guiding trend
Do note these moving averages are useful. When stock breaks on lower time frame, it takes support on wider TF and prepares for next upleg.

Example IEX broke down on weekly in 1st pic but on monthly it's now taking support at EMA's
30 Month EMA are good add points for Long term holding investors
10/20 Weekly EMA are good add points for trend followers
10/20 Daily EMA are good add points -swing/positional

MA helps in understanding the price cycle of stock as stock moves in stages & helps identifying Trends
So what the best is probably what WORKS the best for you. For me above is working

That's it

Thanks for reading do take out your time to like & retweet this. Also join our telegram channel for max learning - https://t.co/lJ00OKnSb2
FREE PDF on price cycle breakout trading - Learn more about price cycles & bases here https://t.co/b4jA3Ce050

Thanks ! Done. Let me know if any queries

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рдирд╛рд░рдж рдлрд┐рд░ рдХреИрд▓рд╛рд╢ рдЬрд╛ рдкрд╣реБрдВрдЪреЗ рдФрд░ рд╢рд┐рд╡рдЬреА рдХреЛ рдЕрдкрдиреА рд╡рд┐рдЬрдпрдЧрд╛рдерд╛ рд╕реБрдирд╛рдИредрд╢рд┐рд╡ рд╕рдордЭ рдЧрдП рдХрд┐ рдирд╛рд░рдж рдЕрд╣рдВрдХрд╛рд░реА рд╣реЛ рдЧрдП рд╣реИрдВ рдФрд░ рдЕрдЧрд░ рдпреЗ рдмрд╛рдд рд╡рд┐рд╖реНрдгреБ рдЬреА рдЬрд╛рди рдЧрдП рддреЛ рдирд╛рд░рдж рдХреЗ рд▓рд┐рдП рдЕрдЪреНрдЫрд╛ рдирд╣реАрдВ рд╣реЛрдЧрд╛редрдпреЗ рд╕реЛрдЪрдХрд░ рд╢рд┐рд╡рдЬреА рдиреЗ рдирд╛рд░рдж рдХреЛ рднрдЧрд╡рди рд╡рд┐рд╖реНрдгреБ рдХреЛ рдпреЗ рдмрд╛рдд рдмрддрд╛рдиреЗ рдХреЗ рд▓реАрдП рдордирд╛ рдХрд┐рдпрд╛ред рдкрд░рдВрддреБ рдирд╛рд░рдж рдЬреА рдХреЛ рдпреЗ рдмрд╛рдд рдЙрдЪрд┐рдд рдирд╣реАрдВ рд▓рдЧреАред