Through series of educational posts we have got an elaborate knowledge of candlestick pattern which include both
reversal and continuation patterns and this post is somewhat different from candlestick it's all about moving average crossovers.
General concept of crossover is that a fast moving average surpasses slow one in any directional trend and could help you be in right side,
A moving average crossover occurs when two different moving average lines cross over one another,
Because moving averages are a lagging indicator, the crossover technique may not capture exact tops and bottoms. But it can help you identify the bulk of a trend.
A moving average crossover system helps to answer these three questions:
Which direction might the price be trending (if at all)?
Where might be a potential entry point for a trend trade?
When might a trend be ending or reversing?
All you have to do is plop on a couple of moving averages on your chart, and wait for a crossover.
If the moving averages cross over one another, it could signal that the trend is about to change soon, thereby giving you the chance to get a better entry. By having a better entry, you have the chance to have better reward.
-> Short term crossovers: it includes 5 DEMA crossover 20DEMA , this crossover is for daily timeframe i.e. for short term traders
5DEMA CROSS ABOVE 20DEMA
although some move was left out but then also the return was splendor NOTE: crossover give signal only on conformation so some move could be left out.
5DEMA CROSS BELOW 20DEMA
-> Long term crossovers: it includes some important crossovers i.e. Golden and Death crosses
GOLDEN CROSS:
here major moving average crosses each other i.e. 50DEMA cross above 200DEMA it signifies major uptrend in large time frame
though we have seen major fall in metal sector but still they are golden cross period
DEATH CROSS:
here major moving average crosses each other i.e. 50DEMA cross below 200DEMA it signifies major downtrend in large time frame
the major fall in nifty was predicted by me earlier with help of this cross
In summary, moving average crossovers are helpful in identifying when a trend might be emerging or when a trend might be ending.
The crossover system offers specific triggers for potential entry and exit points.
These triggers should be confirmed with a chart pattern or support and resistance breakouts
My Observation :- short term moving average crossovers could be confirmed with RSI i.e. if RSI is greater than 50 uptrend possible and if less than 50 downtrend possible if it is not the crossover could be false in that case wait for conformation.
long term moving average crossovers could be confirmed with RSI i.e. if RSI is greater than 60 uptrend possible and if less than 40 downtrend possible if it is not
the crossover could be false in that case wait for conformation.
reversal and continuation patterns and this post is somewhat different from candlestick it's all about moving average crossovers.
General concept of crossover is that a fast moving average surpasses slow one in any directional trend and could help you be in right side,
A moving average crossover occurs when two different moving average lines cross over one another,
Because moving averages are a lagging indicator, the crossover technique may not capture exact tops and bottoms. But it can help you identify the bulk of a trend.
A moving average crossover system helps to answer these three questions:
Which direction might the price be trending (if at all)?
Where might be a potential entry point for a trend trade?
When might a trend be ending or reversing?
All you have to do is plop on a couple of moving averages on your chart, and wait for a crossover.
If the moving averages cross over one another, it could signal that the trend is about to change soon, thereby giving you the chance to get a better entry. By having a better entry, you have the chance to have better reward.
-> Short term crossovers: it includes 5 DEMA crossover 20DEMA , this crossover is for daily timeframe i.e. for short term traders
5DEMA CROSS ABOVE 20DEMA
although some move was left out but then also the return was splendor NOTE: crossover give signal only on conformation so some move could be left out.
5DEMA CROSS BELOW 20DEMA
-> Long term crossovers: it includes some important crossovers i.e. Golden and Death crosses
GOLDEN CROSS:
here major moving average crosses each other i.e. 50DEMA cross above 200DEMA it signifies major uptrend in large time frame
though we have seen major fall in metal sector but still they are golden cross period
DEATH CROSS:
here major moving average crosses each other i.e. 50DEMA cross below 200DEMA it signifies major downtrend in large time frame
the major fall in nifty was predicted by me earlier with help of this cross
In summary, moving average crossovers are helpful in identifying when a trend might be emerging or when a trend might be ending.
The crossover system offers specific triggers for potential entry and exit points.
These triggers should be confirmed with a chart pattern or support and resistance breakouts
My Observation :- short term moving average crossovers could be confirmed with RSI i.e. if RSI is greater than 50 uptrend possible and if less than 50 downtrend possible if it is not the crossover could be false in that case wait for conformation.
long term moving average crossovers could be confirmed with RSI i.e. if RSI is greater than 60 uptrend possible and if less than 40 downtrend possible if it is not
the crossover could be false in that case wait for conformation.
