Stock Market Strategy with "Moving Average" Technical Indicator #4

"Moving Average" is very popular and effective technical indicator to analyze the trend of a stock. This is very good technical indicator for smooth price action and for trading signals also. We can easily get understand that from where we have to buy a stock and from where we have to sell of a stock.
There are many kind of moving average indicators are available like,

1.Simple Moving Average.
2.Exponential Moving Average.
3.Variable Moving Average.
4.Welles Wilder Moving Average.
etc,

Among all of the Moving Average Technical Indicator, Exponential Moving Average is one of the best Indicator.
There are custom Settings we can do as per our trading strategy. We have select the Period of the Moving average.

 This is one of the best setting for all kind of trade. Moving average setting is very important in case of trading strategy, it will depend upon individual that how smooth signals (Buying & Selling) they required in their trade.

If anyone want so many buying and selling signal with very low time frame then they have to give less period value.

With the using of this setting and Exponential Moving Average, every one can make a good profitable trading strategy.

In this above image it is very easy to understand that how Moving Average indicator are useful to understand the Trend of a Stock and how easy to understand the Buy as well as Sell position.

Very simple prediction we can do from the Moving Average technical Indicator like,




1. If Stock moves up from 200 EMA then it is a Bullish Stock and we have to make a buy position when stock cross the 200 EMA.

2. If Stock moves down from 200 EMA then it is a Bearish Stock and we have to sell the stock when the stock cross the 200 EMA.