My picks with rationale

insider

Active Member
#66
The next chart that looks very impressive both on weekly and daily basis is Pantaloon Retail. The stock has reversed its downtrend by making a significant base and crossing a huge supply line with heavy volumes. On daily charts it has formed a flag pattern. CMP - 254. Buy in staggered manner upto 240. Stoploss - 225. Target -300/325.

 

mangup

Well-Known Member
#67
Hi Insider,

Can u pl explain the significance of using EMA 18,45,83 on daily chart?
How u use them in your interpretation?
Why only this combination?
Do you use this combo for all scrips?

I have seen lot many people using various combos.
 

insider

Active Member
#68
mangup - yes each person uses the MAs in his own way. There is no specific rule except the fact that my experience has led me to beleive that this combination has been more or less reliable in terms of signals and at the same time very less volatile. 18 on weekly charts gives me short term runup in a stock. 45 has been used to check the crossover. 83 is like a 200 day average on daily charts. It gives me the long term trend. However please note that for crossovers I only use 18 and 45. But MAs are just used as indicator and do not form an analysis in itself.
 

mangup

Well-Known Member
#69
mangup - yes each person uses the MAs in his own way. There is no specific rule except the fact that my experience has led me to beleive that this combination has been more or less reliable in terms of signals and at the same time very less volatile. 18 on weekly charts gives me short term runup in a stock. 45 has been used to check the crossover. 83 is like a 200 day average on daily charts. It gives me the long term trend. However please note that for crossovers I only use 18 and 45. But MAs are just used as indicator and do not form an analysis in itself.
Hi Insider,

U mean to say,
1. To check for short term uptrend, u watch for prices going above 18 EMA on weekly chart?
2. For crossover trades, u watch the crossover of 18 & 45 EMA on daily chart or weekly chart?
3. For medium/long term trend, u watch for 83 EMA on weekly chart?

I suppose u must have made some set up for trading based on MA.
 

insider

Active Member
#70
mangup - Yes just to correct a little bit I use 18 day to only see if the stock is not overbought. If a stock is too far up from 18 day average I prefer not to enter as per my discipline. Rest all are correct interpretations.

As far as MA setup is concerned I only use them to confirm breakouts and pattern maturity.
 

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