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Movingaveragecrossover

Using the Moving Averages and RSI to optimize buying processIn this chart I have explained my rationale using Moving averages, relative strength and RSI to initiate a buy on this scrip. I always use a weekly chart to check for overall trend and analysis and based on it will initiate a buy on a Daily chart. Explanations are given on the chart. The idea is get the maximum conditions in our favour for a profitable trade. Hope it will be helpful. Another important thing is to always define a stop loss if the trade does not go according to plan.
TEducation
by TheUnlearningOne
25
"Crossover" your limits with "Crossovers" !!!!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.
NSE:NIFTYEducation
by Chaser30
4
Nifty: At important support levels- Nifty near its March bottom - if holds on to 15680-15720 zone then it could be a case of Double bottom - Target could be retest of 20 day EMA / 50 day EMA / 200 day EMA ( use charts to keep track of these levels as it changes with every trade day) - trend line resistance around 16680 / 16800 Risk factor - we see 50 day EMA crossing below 200 day EMA which is also referred as Death Cross Can Nifty stage a comeback...? or are the Bulls down and out...? Only time will tell... Important levels have been given and different scenarios have been considered.... Given the set up, My Trading strategy: Gone with a 26 May expiry 15300 Put short @ 107 - Strategy has a 9% profit potential on margin requirement - it also gives protection for a fall up to 15193 till May expiry Will consider to Exit / Review if Nifty closing is below 15680. Take care...!!! Disclaimer - The view expressed here is my personal view - Past performance is not a guarantee for future predictions - Use this for educational purpose - Any decision you take, you need to take responsibility for the same - It's your hard earned money. Treat it wisely - Trade / Invest keeping in mind your trading style, goals and objectives, time horizon & risk tolerance - if trading in F&O, understand that F&O trading involves risk - Do take proper risk management measures - Do your own analysis and consult your financial adviser if need be
NSE:NIFTYLong
by indiamarketoutlook
Affle - ascending triangle pattern Affle is constantly making higher highs and higher lows. Price is forming an ascending triangle, which is form of a bullish set up. Interpretation: Price moving high in a narrow range, increase in share price means that buyers are interested in buying a stock even at increasing price, which indicates a bullish anticipation in buyers. Price is also showing 2 more bullish signs: 1. Price taking support from key moving average: 20 Day EMA 2. Key moving average cross over : 20 day Ema has crossed 50 day EMA from below, on 31st march. Keep an eye on stock and add to your watch list. Any close above 1295 can lead to potential target of 1340, 1412, 1480 in order. Check your risk appetite and pick safe targets accordingly. **********
NSE:AFFLELong
by warrenwaytrading
Chemcon speciality chemicals is about to breakout the channel?Chemcon is consolidated between a price range, which forms a channel pattern. Upper line is Resistance line and lower line is Support line You can see many times the support & resistance tested as well. In such patterns we can take positional entry at the breakout point. How to calculate the target? I have marked resistance and support points namely A & B respectively. So the difference between them will give us target after breakout. Target points = A - B = 467.70 - 400.10 Target points = 67.60 Adding this to point at resistance line that is 467.70 we will get Target Price = 467.70 + 67.60 Target Price = 535.30 Roughly we get the Target price of Rs. 535.30 which is close to the price from previous resistance. So this is how the channel breakout pattern works. Time to achieve the Target : 1-2 Months Positive signs for breakout :- Stock has bullish momentum RSI is above 60 MACD is about to give Buying signal 20,50 & 100 SMA crossover If stock fails to breakout, it will take support around 432. What is your opinion on this? Drop into comment section. Disclaimer : This is my personal analysis about Chemcon. Do your own analysis before taking any position. I am not responsible for any profit or loss.
NSE:CHEMCONLong
by AmeyKajarekar
3
NIFTY TRADE SETUP -SGX NIFTY IS SHOWING A GAP UP OF 45 POINTS -THIS SHOWS A POSSIBLE OPEN ABOVE YESTERDAY HIGH -BEST PART IS NIFTY HAS BROKEN ITS 200-EMA ON DAILY CHART AND MANAGED TO CLOSE ABOVE 10550 -AND IF THE MARKET SUSTAINS ABOVE THAT WE CAN SEE BIG MOVES ON NIFTY -A " BUY ON DIPS" RECOMMENDATION -CRUCIAL SUPPORT AT NOW AT 10550 -MARKET IS LOOKING TO REASON TO RALY EVERYTIME -KEY THING TO WATCH OUT IS THE FOMRATION OF A NEW TRENDLINE ON 30-MIN CHART -PREMIUM WAS IN DISCOUNT THE FUTURE INDEX HAS CAUGHT WITH THE SPOT RATE -THIS SHOWS THE SHORT COVERING YESTERDAY -NIFTY NEXT TARGETS 10620-10740 -NIFTY INDEX CAN LOOK TO TEST ITS 200-SMA PLACED AT 10890 "BIG MOVES CAN BE EXPECTED" "HINT IS IF MARKET OPENS ABOVE 200-EMA PLACED AT 10513" "SUSTAINS FOR A THE FIRST 30-MINS AND CREATES A NEW MORNING HIGH" "NIFTY THEN IF MANAGES TO CLOSE ABOVE 10540 THEN WE WILL SEE 10740-10810" "PLEASE NOTE THE ABOVE READING IS BASED ON PRICE ACTION TO BE EXPECTED" "PLEASE WAIT FOR CONFIRMATION" "ALL PROVED TO BE RIGHT YESTERDAY" NIFTY RESISTANCE FOR THE DAY 10620-10700-10740 NIFTY SUPPORT FOR THE DAY 10550-10520-10480 !!PLEASE NOTE THE ABOVE INFORMATION IS FOR KNOWLEDGE ONLY!! !!TRADE ACCORDING TO YOUR RISK PROFILE!! !!SUGGEST OPTION TRADES TO NAVIGATE VOLATILITY!! !!HAPPY TRADING!! READ OLD POST ON INDEX AND SEE HOW WE ARE POSITIONED IN THE INDEX YELLOW LEVELS ARE CRUCIAL SUPPORT ZONES YELLOW LEVELS ARE CRUCIAL SUPPORT ZONES
NSE:NIFTYLong
by manavtechresearch