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Two Technical Analysis Indicators that can save you from Disastrous Loss. (How Can we use it).

Updated: Nov 14, 2019


Two simple techniques, No Big Deal!

1) Simple Moving Average (10, 20)

- For day traders it must be on 5 mins chart. - For swing traders, it must be on the daily chart.

Rules No 1: BUY the stock when shorter (10) moving average crosses above the longer (20) moving average.

Rule No 2: SELL the stock when shorter (10) moving average crosses below the longer (20) moving average.

-If divergence is increasing then the trend is also getting stronger.

Ex- Today DHFL crashed 50% intraday but you could have cut down your losses if you would have used this analysis.

( I am talking 5 mins chart.)

It went to 337 levels from 600 levels but this indicator already told you to exit at 570 Rs.

2. Moving Average Convergence Divergence (MACD)

- For day traders it must be on 5 mins chart. - For swing traders, it must be on the daily chart.

Rules No 1: BUY the stock when MACD line crosses above the Signal Line.

Rule No 2. SELL the stock when MACD line crosses below the Signal Line.

Ex- Today YES BANK crashed 34% intraday but you could have cut down your losses if you would have used this analysis.

It went to 225 levels but this indicator already told you to exit at 265 Rs.

For better results use both indicators simultaneously.

In Stock Market, we can not predict the future but we can cut down our losses because Technical Analysis is all about the methodology for forecasting the direction of prices through the study of past market data, primarily price and volume.

You can learn Technical Analysis in 15 days via video lectures here

Thanks! Akshay Seth Research Analyst (SEBI Regd.) akshay.equity@gmail.com Linkedin: connect here Learn 'Stock Analysis' in 30 days: here Get daily BUY/SELL calls to subscribe here Get Professional Investment Advice at Equityboxx here Start trading in 3 hours with Brokerage Free Demat account: Open here




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