Analysis of charts - discussion share ur views
- Thread starter vishalalluri
- Start date
SMA MEANS SIMPLE MOVING AVERAGES
It simply takes the sum of all of the past closing prices over the time period and divides the result by the number of prices used in the calculation. For example, in a 10-day moving average, the last 10 closing prices are added together and then divided by 10.
SMA could be a very good indicator for short medium trader in which it could give simple signals abt the trend of the scrip
sma are also used by intra day traders but to trade with sma intrday one has to be agrresive trader
MED(2-3 moths)/long term perspective SMA are good trend indicators
The most common time frames that are used when creating moving averages are the 200-day, 100-day, 50-day, 20-day and 10-day.
200-day average is thought to be a good measure of a trading year,
100-day average of a half a year,
50-day average of a quarter of a year,
20-day average of a month and
10-day average of two weeks.
a simple chart showing price action movement on basis of SMA is shown in the chart attched
3 day SMA RED LINE
14 DAY SMA GREEN LINE
50 DAY SMA BLUE LINE
It simply takes the sum of all of the past closing prices over the time period and divides the result by the number of prices used in the calculation. For example, in a 10-day moving average, the last 10 closing prices are added together and then divided by 10.
SMA could be a very good indicator for short medium trader in which it could give simple signals abt the trend of the scrip
sma are also used by intra day traders but to trade with sma intrday one has to be agrresive trader
MED(2-3 moths)/long term perspective SMA are good trend indicators
The most common time frames that are used when creating moving averages are the 200-day, 100-day, 50-day, 20-day and 10-day.
200-day average is thought to be a good measure of a trading year,
100-day average of a half a year,
50-day average of a quarter of a year,
20-day average of a month and
10-day average of two weeks.
a simple chart showing price action movement on basis of SMA is shown in the chart attched
3 day SMA RED LINE
14 DAY SMA GREEN LINE
50 DAY SMA BLUE LINE
Last edited:
hi jaipuri
These charts were at the basic levels for a beginner who knows minutest of TA(MA) to let know whats it all about.
IMO
There are several factor which also lets one decide about the continuity of the trend .ADX GMMA along with MA also gives a better picture on The direction of the trend/momentum and the GMMA shows the interest oh short term traders to long term traders.PArallelly we always have a look at the candlestick patters formed if any reversal pattern occur against the +ve crossover for SMA .
These charts were at the basic levels for a beginner who knows minutest of TA(MA) to let know whats it all about.
IMO
There are several factor which also lets one decide about the continuity of the trend .ADX GMMA along with MA also gives a better picture on The direction of the trend/momentum and the GMMA shows the interest oh short term traders to long term traders.PArallelly we always have a look at the candlestick patters formed if any reversal pattern occur against the +ve crossover for SMA .
hi jaipuri
this post would would be helpful on pivot point
http://www.traderji.com/technical-a...s-discussion-share-ur-views-2.html#post359282
I had posted about pivot in earler threads
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