Channel: Mahendra kori

Category: Education

Tags: how to use moving averages in tradingmoving average strategymoving average kya hota haistock marketmoving averagestock market for beginnersmoving average explainedmoving average trading strategymoving average exponential indicatorstock market news todaymoving average crossover strategymoving average intraday trading strategymoving average swing trading strategymoving average in bankniftyin hindimahendra kori

Description: The moving average 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 days, 20 minutes, 30 weeks, or any time period the trader chooses. There are advantages to using a moving average in your trading, as well as options on what type of moving average to use. Moving average strategies are also popular and can be tailored to any time frame, suiting both long-term investors and short-term traders. A moving average (MA) is a widely used technical indicator that smooths out price trends by filtering out the “noise” from random short-term price fluctuations. Moving averages can be constructed in several different ways and employ different numbers of days for the averaging interval. The most common applications of moving averages are to identify trend direction and to determine support and resistance levels. When asset prices cross over their moving averages, it may generate a trading signal for technical traders. A moving average simplifies price data by smoothing it out and creating one flowing line. This makes seeing the trend easier. Exponential moving averages react quicker to price changes than simple moving averages. In some cases, this may be good, and in others, it may cause false signals. Moving averages with a shorter lookback period (20 days, for example) will also respond quicker to price changes than an average with a longer lookback period (200 days). Moving average crossovers are a popular strategy for both entries and exits. MAs can also highlight areas of potential support or resistance. While this may appear predictive, moving averages are always based on historical data and simply show the average price over a certain time period. Copyright Disclaimer: - Some contents are used for educational purposes under fair use. Copyright Disclaimer under Section 107 of the Copyright Act 1976, allowance is made for "fair use" for purposes such as criticism, comment, news reporting, teaching, scholarship, and research. Fair use is a use permitted by copyright statutes that might otherwise be infringing. Non-profit, educational, or personal use tips the balance in favor of fair use. 00:00 Introduction 01:33 how to use Moving Average 02:43 To Identify Trend 03:42 To Identify Support & Resistance Level 04:48 To Identify Trend Change 07:07 Moving Average Crossover 10:02 Some Bonus Tip