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Nifty Prediction Using EMA
Friends genuine stock market analysist always keeps a close eye on the movements of different stocks.
When the movement of a stock will change and is going to happen.
When the price of a stock continues to fall, it means that its movement is a down trend.
In this case you have to wait for the stock to come uptrend from down trend.
It is very important to make guesses through analysis.
If you can understand the movements of the stock market properly, then you too can earn money from the stock market on a regular basis.
Some indicators need to be used to know when the stock movement is about to change.
Today I’m going to talk to you about just one indicator.
Moving average or Exponential Moving average. Moving Average is an indicator that allows us to infer that the stock has not completely changed direction.
How to Use EMA
In technical we use different types of moving averages.
9/20/50/100/200 Days EMA
We will know how to advance movement of any stock with the help of EMA.
The price of a stock tries to rise again after falling for a long time.
Many times, the stock is trying to rise again and again, but after a while it falls again.
In this case, you can not understand with the naked eye.
You can see if you use Twenty Days – 20 EMA. The stock has been touching the EMA repeatedly for twenty days and falling.
In that case you have to wait for the day or the day when that stock has completely broken the twenty day EMA on upside.
Then you will think that the movement of that stock has changed.
Breakout 20 Days Moving Average And You Can Buy The Share.
Target or Profit Set
Remember that each moves as support and resistance in the moving average set.
When the stock exceeds the 20 day moving average, its next target is the 50 DAYS EMA.
Again when that particular stock completely exceeds the 50 day moving average, the next target for that stock is the 100 day EMA.
If for some reason the stock does not completely exceed its target, the stock is likely to reach the previous EMA.
Of course, the bottom 20 day moving average and the top 200 day moving average are the most important.
When You Buy Nifty Stocks?
There are two things to keep in mind if you want to buy a stock.
If a stock completely exceeds the 20 moving average, then you can buy that stock.
Again if a stock completely exceeds the 200 day moving average ..
Then you can invest in those shares.
Use Stop loss
Of course, you have to be careful about which stocks you analyze and which you do not trade.
You have to use Stop loss.
Otherwise you may lost large number of Amount.
Last Word
EMA also has many other indicators that allow you to understand the movement of any stock.
Like RSI, Support & Resistance.
I hope you find my article “Nifty Prediction Using EMA” If I have made a mistake in this article or you have any questions please feel free to comment in the comment box and I will try to answer your question as soon as possible.
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