BC TA

"How to Determine Market Trend Using CPR"

Read the writeup & most importantly understand the chart with comments

It solves the problem which traders face "what's the trend?"

If someone liked it, may send a box of chocolates, I won't mind ๐Ÿซ ๐Ÿ˜„ https://t.co/BQ9bwjxBU4

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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
"๐™๐™จ๐™š๐™จ ๐™ค๐™› ๐™ˆ๐™ค๐™ซ๐™ž๐™ฃ๐™œ ๐˜ผ๐™ซ๐™š๐™ง๐™–๐™œ๐™š"

Like๐Ÿ‘ & Retweet๐Ÿ”„ 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.

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Different uses:

1โƒฃ 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 "๐—š๐—ผ๐—น๐—ฑ๐—ฒ๐—ป ๐—–๐—ฟ๐—ผ๐˜€๐˜€๐—ผ๐˜ƒ๐—ฒ๐—ฟ"

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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).

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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.

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Moving Averages ๐Ÿ“š

๐Ÿ’ŽSECRET INFO inside

๐Ÿง Great for both beginners & advanced traders

โ–ช๏ธ What are they?
โ–ช๏ธ Types of MAs
โ–ช๏ธ Why are they such a powerful tool?
โ–ช๏ธ How to properly use them?
โ–ช๏ธ My best SECRET EMA value?
โ–ช๏ธ Which Timeframe to use?
โ–ช๏ธ Advanced EMA technique?

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โ–ช๏ธ 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 ๐Ÿ‚
Price below = Bearish ๐Ÿป

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โ–ช๏ธ 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.

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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

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โ–ช๏ธ 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 = ๐Ÿ‚

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https://t.co/g5SneLNPh5

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