When is the 'Best Time' to BUY a Stock?

August 7, 2018

100%, It works.
 

  1. Death Cross: This is the combination of two moving averages. It is used when a shorter-time frame moving average crosses over a higher-time frame moving average, indicating a trend reversal in favour of the bears.

    While computing Death Cross, a 50-DMA is the shorter time frame MA and 200-DMA is the higher time frame MA. Therefore, when the 50-DMA crosses down the 200-DMA, it is considered a sign of further weakness. Traders should keep a close watch on these stocks if the 50-DMA crosses down the 200-DMA. They should look to short-sell and/or exit, as these stocks can weaken further from current levels.

    This is BEARISH SIGN.

    You can also take MA 25 - MA 50 for mid term as the way I did.

    In above example, It already warned that TATA MOTORS will go down.

     

     

2. Golden Cross: This is the opposite of death cross. When the short-term moving average of a stock or index moves above the long-term moving average.

This pattern as a bullish indicator.
 

While computing Golden Cross too, a 50-DMA is the shorter time frame MA and 200-DMA is the higher timeframe MA. Therefore, when the 50-DMA crosses above the 200-DMA, it is considered a sign of further upside.
 

Again, You can also take MA 25 - MA 50 for mid term as the way I did here.
 


Ex- Ashok leyland started its journey only when golden cross approved!

 


Be a long term investor | Learn Stock Analysis | Conquer the Stock Market.
 

Don’t Miss this opportunity and start investing your money if you haven’t started yet.

You can learn Technical Analysis via video lectures here http://equityboxx.com/esta

or

Attend Stock Technical Analysis Workshop in Delhi on 12 Aug 2018. here : http://equityboxx.com/workshops

 

 

 

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