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The limit lines of MarketMARKETS ARE HIGH AS A KITE : Historically, this acts as strong resistance for markets. Markets tend to reach this point when there is too much optimism around. This is the most dangerous level for investors in the market. Retail investors are extremely greedy here. Expect a bubble to burst soon. CRITICALLY HIGH : At this line, the markets are relatively too expensive and can show consolidation. Investors should show caution and stay fearful. MID LINE: Markets will oscillate above and below this line quite often. This line is a regular market trend. CRITICALLY LOW: With good hopes and optimism around, markets will stop consolidation over here. This is where we should be greedy. MARKETS ANNIHILATED: In 20 years' history, markets have reached this line only once. This is an extreme line and takes it as a lottery ticket. Prices extremely rarely will consolidate to this line, but when it does it might be the best time to invest in your lifetime. *This is a log graph of 20 years. Markets are never linear, they change in percentages relative to the last price which is not linear.*
NSE:NIFTYEducation
by WizSmash
3
On verge of breakoutSMS life science has been doing quite well for some time now. After the earlier gapups formed back to back in Sept 2020 , the gaps were filled subsequently and it has been forming a type of penant. The numbers are going to be announced on 7th of june i.e tomorrow and caution should be maintained if the trade is executed. A good chance that the stock should breakout of the consolidation since april. Disclaimer : This is strictly for educational purpose and any position should be taken only after self analysis.
NSE:SMSLIFELong
by VigneshIyer
HOW TO BUY STOCKS USING MOVING AVERAGEMoving average is the most common indicator in technical analysis also be the most important indicator, as it serves as the foundation of countless others. 1) What is a moving average? Moving average (MA) is a simple technical analysis tool that smooths out price data by creating a constantly updated average price. The average is taken over a specific period of time like 10, 20, or 50 days, or any time period as suitable. The indicator is known as a ‘moving’ average, since its value keeps changing as the data keeps changing over time. I have used a band of 20 DMA. Here’s an example. Say the closing prices of ITC for the last 5 trading days are: Closing prices Day 1: Rs. 215 Day 2: Rs. 220 Day 3: Rs. 222 Day 4: Rs. 226 Day 5: Rs. 239 In this case, the moving average of ITC for a 5-day period is calculated like this. = (Day 1 price + Day 2 price + Day 3 price + Day 4 price + Day 5 price ) ÷ 5 days = (Rs. 215 + Rs. 220 + Rs. 222 + Rs. 226 + Rs. 239) ÷ 5 days = Rs. 224. When used appropriately, they provide easy insight into a trend’s direction, its magnitude, support and resistance. Works magically, for those who depend on support and resistance strategies to generate entry points. However, for those who prefer to trade price reversals, using moving average crossover strategies is perfectly viable as well. 2) How to buy stocks using moving average? (I use a band of 20 DMA as my strategy) a) By identifying support and resistance as shown in the chart: A moving average can also act as support or resistance. In an uptrend, an average may act as a support level, as shown in the chart. This is because the average acts like a floor (support), so the price bounces up off of it. In a downtrend, a moving average may act as resistance; like a ceiling, the price hits the level and then starts to drop again. b) By identifying the trend as shown in the chart: Look at the direction of the moving average to get an idea of which way the price is moving. If it is angled up, the price is moving up, angled down, and the price is moving down, if moving sideways, and the trend is likely in a range. Disclaimer I'm not an expert, i'm still learning. Sharing knowledge will enrich me with more knowledge. This strategy works well for me it may or may not work for you. I tried to explain in a layman's point of view. I reserve the right to be wrong.
NSE:NIFTYEducation
by Chinmayonniftyy