Transcripts
1. Moving Averages : An introduction: Hello, friends. Welcome to Michael's on moving averages. My name is Goro Kula. I'm a professional banker on an investor I and was for long term, then stalk with good fundamentals and good technicals. Friends moving averages are being used for many years to protect the market frame and our best technical tools. Our double moving averages are basically lacking. Print indicators on a frequently used do do the simplicity and effectiveness on best thing . What moving averages that these can be used for. Analysis off stocks for ex and even commodity So friends. By learning moving averages, you master lots off other investment options To Holmes. Moving evidence provide a reliable tool for beating the market off fair percentage of time . But you should know how to use them properly. Most people use wrong start setting for their buying decisions on, then blame moving our strategy for the loss and this course you learn important for moving averages as a technical tool as well as a quality investing, too. Most people think that moving average is a technical tool has should be used for technical analysis only, But villain, how long time investor to can you doing averages for successful investing. Then we will learn how to differentiate between our level trained on an under level for friends. Many things in the market are false. Anglos. In this course, I will make you learn how to identify if a signal is really a reliable signal. This course will help you identify only buy and sell signals. Friends, if you learn, went to enter the stock and went to exit half the battle is over. Very few master disarmed. We were long went to enter the stock and when is the best time to exit the store? Next we will see what are the perfect moving average combination This morning is in border . I've move alone. What combination must be used by Internet er, swing trader or a long term investor? I will show you many life examples how you can use these combinations for intraday Swing on long term. Interesting. Then we will learn fiber tarting moving every strategy. This is a special moving our strategy on. We will learn this combination by combining an indicator court idiots Denver will see How do you moving averages as support or resistance? Lastly, we will develop a moving average based trading system, which is easy to use and apply friends in the scores. I provide you a simple trading system on other tricks and strategies. You won't get good trading signals with complex charts or to any indicators simpler trading system, the more likely it is beneficial for traders and investors. I have covered this basic principle of simplicity in mine. While preparing this course, I will keep things as simple as possible and then went straight with live, example and practical at each and every step of the schools. I will take you from basic level two at once, level in a step by step manner, and by the end of the school, you want me. Any other technical analysis books or courses to refer to start your training are interesting. Almost every trader or investor knows what a moving averages and how it's used, but very few really understand the injury cases are moving averages on many other ways. They can be used to maximize the profits. First, moving average is used. Not only were people who had okay technical analysis, but also by people who invest using fundamental analysis. Fundamental analysis will tell you which talk you can invest in. But when to interest, most people are confused. To answer this question, even I was confused at what price levels to buy when I first started investing. Mostly low intrinsic Will you all be? But there are many stocks which now the below their intrinsic value. Orville api, off 20 As many things just see that his story could be off this door for last 10 years. Friends. This is a good store with good for normals. But even during the great recession off 2000 t, this stock is running into high P. So I went by the store and there are many good stock like this who run into high P or valuations, even during bad times, because fundamentals off these kind of companies are so strong that people never lose it. This company has strong fundamentals, but he tells you not to buy so and to buy the answer like moving averages. In this course, I will share many strategies on using what indicators you can buy good stocks and at what levels. In this course I will show you what you need to know when it comes to choosing the type and Lan Ta perfect moving average and strategies on how to use moving averages when making trading decisions. So, friends, if you are in donated swing tutor for extreme or a commodity trader or even a long term investor, this course before you are I am super excited to meet you all in the opening lecture off this amazing course on moving averages and help you increase your profit margin with some amazing strategies. I am confident that after this course juvenile, invest in a more confidently rather than just speculating. So what are you waiting for, simply andro.
2. What are Averages?: very come through this opening lecture in the last morning. Vissel What is the importance of moving average in the world off? Stock analysis? No. Before jumping the moving average, we should know what an average is already simply the some of the terms divided by a number of times. Let us take example of Microsoft. Here are the clothing prices off Microsoft for the last five trading sessions. So the last five day average close price will. We can collected US average physical toe for 30.8 divided by five, which gives, it is explained. Zero. Has average price of Microsoft for the last five trading sessions will be it is exported. Zero. How about example Shows how to calculate five day average. Similarly, you can you can call it 10 2050 4100. The average off any store friends. Morse Traitors works on the moving price off the stock, as this price contains all the market noise and best to predict rain for the next day. But you can also calculate average hoping price closing price high or low, depending on your needs. You can practice some problems given in the assignment toe. This more do tohave Ah, better understanding on how you calculate the average off any store
3. Moving Averages Basics: Hello, friends. Whenever you see a chart off any store, you'll notice a lot. Sof Nice, that is upward and onward. Movement of the price. Just see the shark and you'll, although that is lots often the movement and lots of noise in the chart. No, what if you get a tool that will introduce all this nice are moving average can help to cut down the amount of noise on a price jar. Let's see what a moving average really is. A moving average is simply a technical analysis tool that smooth off the price data by creating a constantly omitted average price. Hence you get a smooth chart with less, well, totality. You must be wondering why it's called a moving average. It is called a moving average because we are moving to the latest data points on discarding the oldest data in the last lecture vehicle. Bulleted the average off Microsoft very get the average, as it is explained. Zero for December 15 to December 21. No, we can clear five day average for December 22. We will take the data for December 22 2120 19 and eating on Discard the price off 15. So essentially we are moving to the You just get a poin on discarding the oldest to calculate off, find their heritage, has any moving average. If you are confused, why there is no 16 and 17 December. Then I would like to say that actually, these were off this for market. The average is taken over a specially Peter of time, like 10 days, 20 minutes, 30 weeks or any time here. That reader chooses longer the horizon longer. The time frame you can call collect moving average using highs, lows open or close. However, the closing price are mostly used by traders and investors as it reflects the prize with the market finally settles. Actually, how moving average actually looks like here we have plotted ah, 50 day moving average shown by Red Line. Look at the direction of moving average to get a basic idea off. What were the prices moving tangled up and the price is moving up when angle down the prices moving down overall when moving average move sideways than the prize is actually in a range. Please note how we get us move line, which is easy to be and contains less nice
4. Types of Moving averages: completes me lecture in this letter. Livilla What are the different time for moving averages available and how and when to use which moving average off Many moving averages available. The craters on investors normally study following three times off moving allergies. First of simple moving average. Second is exponential. Moving average on third is double or triple exponential moving averages. He's moving average. Has its own medics and demerits on different investors. Use them based on their time writers. No, let's study what are simple moving averages. This is simplest form of moving average available, which is calculated by taking average off a particular set off values. The average we calculator in previous examples on also in the assignment is nothing but simple moving average, since we're calculating it. Asperger latest five days later. This is also called. Find the Answer Me. Similarly, there are 10 2050 141 200 years of me or any period. Asked what the need off investor, he let us understand the concept of moving average from the following example. This example shows the closing price off 10 consecutive trading days. Suppose we want to a lot of five years and this can be calculator by taking the average or 1st 5 boys, which comes out to be 47.8. Then get nest SME. We take the you just get a point that is 46 and lead the oldest. Get a point that is 45. No, we get the average as 46. Similarly vigor the next SME as 50 point 50.6 and so on these averages. But these everything is joining it for us won't go, which is called a moving average line, and it continues to move as the bank progresses. Let us see a practical example off on this chart of a stock. Here you can see 50 day 100 day on 200 SME on a single charge. Notice that how 50 years and follow the price closely than 100 days of me. And also although our 200 SME is less fluctuated by the price mover and all the noise, No, let's long what an e. M. Is. The exponential moving average is a type of moving average that gives war way to the reason prices in an attempt to make it more sensitive to the you just get a parts. Have a look at these data points on the right. When we calculate the simple moving average across these data points, we are giving each data point equal importance. Meaning date off December 5 has same importance as dead off December 11. However, in market, it's not always true, because markets discount everything built on all known and all unknown information. The price of December 11 is more sicker than prize of December 5. This means that in leaders price what you see, Mr Market discounts all unknown and unknown information hands critics off. SME argued that more of it should be given to the latest price, so why not assign some videos to the leaders? Price? So not later. Skater has the highest vintage and oldest deeper has the smallest week. The average calculated on this scale. Set off data gives us exponential moving average. We won't go to the previous calculation part off TME because no one these days calculate manually. Most technical analysis platform right this because off let us get a point. Getting more with it. Him is more sensitive to the price, then a Nestle because off latest data points getting more vintage GM is more sensitive towards the price then SMH In this life you can see 50 smh 50 day Emmett and notice how GM is more active towards the price. I don't know, that's it and and sticks go over to the price movements. Uh, due to this reason, only most traders used here me or reciben their food rations to the enemy that is the one year and Tripoli and me these variations were forced fright by Patrick Miller. Game after name suggests these moving averages provide Maury Date on the latest price than normally in the in an attempt to smooth out noise while still remaining highly reacted to the changes in the leader. Hedaya Plotter 50 day in May W me 50 year Tripoli in me on the job You can also how the people TME is more sensitive than the w me. These averages are mostly used by intraday and swing traders. With this, we come to the end of critical part on from mess lecture. We will move on to the application part off moving averages
5. Practical Session: Types of Moving Averages: welcome to this practical session in this session, Vincey hope about our moving average on the chart, and we will notice the difference between the simple moving average on an exponential moving average and double and triple moving average also. So let's start with plotting a simple moving average for this. You need to select the moving average on. You need to select the period that is the period for with the averages to be calculated. Suppose we want to plot up 50 day moving average so you will select 50 and then you need to select the basis on which the average is to be calculated. We live with the opening price high price, low or close on Saturday. Normally, we used the closing price and then the Bible. You disapproving average well, extractors as green. Now this is the 50 day moving average, simple moving average we applauded on the chart, and you can observe the smoothness of the CO. That is, the simple moving average has a new The noise off rifle went a lot. You can see the price movement going up and down, and you can see the simple moving average. It has relieved the NYSE a lot and it is easy to nor the opponent the downward trend off the price. No, let's float another moving average. Now let us slaughter 200 moving average. This will calculate the price for 200 days. No, this is a very stuff. Is that 100? A simple moving average. And also in order how the 50 day moving averages following the price more closely than the 200 day moving average. No wonder the moving averages more smarter than the 50 day moving average. Now let's see the difference between simple moving of it and an exponential moving average practically lecturing removed this toe under the moving average are better. Regis added this toe exponential moving average on modified this to 50. No, if you see this job, this red one is the exponential moving average. And this green one, this simple moving average not Is that how this exponential moving averages for wind the price more closely? Dunder Simple moving average. If you see this are exponential, moving average will always follow the price more closely than the simple moving average. The explanation moving average for low the price more closely because off the veers assigned to this average. And that's why exponential moving averages generally used well traders more than simple moving average moving forward. Let us either double and triple exponential moving averages. Also, let's remove both of these or better modified these moving averages like a Schmidt. This is double moving average, and red one has has tripled. Moving average now is you. Now if we zoom the chart, no doubt how the people moving averages following the price more closely than their double moving elders. This is again because of the more revered assigned to the triple moving average.
6. Trading with single moving average: very good looking from this lecture v move, or so the practical applications off the moving averages. The most basic application off moving average is to identify the by and some signals, but this has It's all minutes, Andy Minutes. We gotta buy signal when moving average moves Lord and the Price. This means that readers are willing to buy the store at higher price. Then it's average price. This shows optimism in the market. Therefore, one should look at the buying opportunities vigor to sell signal when moving average goes above the price dish. Use the pessimism in the market that is, the traders are willing to sell the stocks at Price Lord and moving average hands. One should look at the selling opportunities, this crossing off moving average and the price is core. The crossover Busan about redevelop a simple breeding system which will tell us, went to enter the store and went to answer it. Nobody find the rules over trading system but never deviate from these rules. Rule number one is by when the current market price tones greater than moving average. Use any moving average mostly used as a me or hear me and more aggressive breeders can use the William E or Tripoli in me and stay invested tell. This condition holds court rule Number two is sell when the current market price tones Lord and moving average moving forward in the sharp. Please see the moving average on the price radiations. Here we use 15 a. M e. Northpoint's were Iemma crosses the price. These are called the crossovers. So as for our rules starting from left, the first opportunity to buy the stock originated at Point B. One notice At Pine Villain. The stop price moved to a point higher than its 50 day Amy hands. Ask about our trading system rule the initiated of fresh, long position, that is, we buy the stock going by the feeding system. We stay invested till we get the exact ritually eventually got at the point. As one, this trailer generated a profit off around 81 Parcher. Next thing, though, comes on the point we do, followed by the signature square off and the point as to that is his cell at the point As toe district deducted in higher profit off around 114 pusher. However, the last freed that is Vetri on S Tree Waas. Not as impressive, resulting in a profit off one little six per share. So friends, home to door this training system fair, lesser The straight work fairly well ash on by the profits in this table. But did you notice the points W one and W two in the chart? There were many buy and sell signals between these two points, but the strange were not as profitable as somebody, even in losses. These are your Victuals. If you have a deep look at the chart, you will see that there was lots offside movements between the streets hands. We come to a very important conclusion about moving averages which is moving of it is work best in the trending markets and failed to perform when the stock move sideways during sideways markers. The moving average will give you many credit signals, but most of the singles will result in marginal profits Body one loss. So we need some defined went toe over trading system so that we can remove these shores on false signals. Let's see another example notice here that there are many trading signals between these two points as there is side with movement off the stock. But when you see these points, these two players almost compensated the past side with mediocre performers. Let's move on to one of the example here. Also, you can notice the whip shows. But again, the Straits almost compensated the mediocre performance off the past side with movement. Or which shows asking in previous examples, moving averages provide many trading signals doing sideways movement. But these streets resulted in very less profit or even in Los. But greater should not be selective in terms of choosing singles that moving every system suggest. In fact, the trainer shoot select all treat as suggested in the system. In fact, the technical analysis works by sticking with the rules only as in examples. This one big grade is good enough to compensate all the lost, and I can give you sufficient profits. So the key to moving average rating system is to take all the trades and not we just mental about the signals being generated by the system. We will refine over moving average based rating system in future lectures so that we can avoid the false signals given by side with moment of the market
7. Practical Session : Trading with single Moving Average: Welcome to the spectacle session. In this session we will see the practical of over trading strategy as discussed, bigoted by Signem, who've and moving average crosses about the price on we get a cell signal when moving average crosses below No next Florida simple moving average of 50 day simple moving average on the shark nor the moving average shoulder injury and the points where it is crossing the Priceline and no down the if he start from left to right, let's start from here. This is Ah here. The price is crossing the moving average below and this is the point off cell. Now again, this moving average crosses this price line at this point and northern, the prices crossing above the moving average has we're gonna buy signal that at this point So if you buy at this point and again, this prices crossing the moving average below at this point and no down, let's in given across there at this point. So if you notice that we have Bob at the price level of 4 77 on we sold at around 46 has we have made marginal profit during this Fred moving on hurt we again got that predicting nose at these points. But the trades were not that profitable. And notice that these are which shows that is the price is moving side with not opened on moving ahead. We again got the cell signal at this point and buy signal at this point again. This trade is marginally profit. That is, we border 43 we sold at 500. So we had a profit off around 17 per share. Again, we bark at this point. But these were not as profitable are you can see that the stock is inside of his woman again. We border this again. We water this price that is around 509 and sold at around 5 42 So we have a profit off around around 33 around 23. 34 during this straight. So you can see that some treat the profitable and somewhere not that profitable, but the profitable trades some 23 trades. We're very profitable. So the loss between it and guarding the rickshaws is recovered by these big trades
8. Golden Crossovers: Hello, friends. In last lecture, we started a simple moving average pay system for trading. But didn't you know that the limitation off plain vanilla moving after system, which we used? Yes, you got that correct. This system generates too many singles, and for a common trader or investor, it's difficult to track and take positions. Moreover, it is difficult to eliminate with shows that is side with woman. What if we develop a system that Colin eliminated side with market and makes us tick less trading decisions? The answer to this problem is golden plausible strategy. Ah, Golden Cross. Your system has the trailer tok fewer periods inside with market the Golden Cross over his form, but two moving averages. When the faster moving average crosses a slower moving average, we get the golden crossing. Them died in the intersection off to everything is called the Golden Crossover Enhance. We get either a signal to buy or sell. Basically, there are two back for Golden Cross indicators. The first ER's bullish Golden Cross V chuckles when the faster moving average crosses the slower moving average upwards. This clears off bullish. That is, by signal on the chart. The very Golden Cross That is, that cross occurs when the faster moving average crosses the slower moving average downwards This creates are very signal on the chart next year. Practically the example off home people. In this example, you can see two year miss studies 15 a. M on 100 a. M. E and observe the intersection of these two moving averages. You notice these two moving after this intersects uh, four points. But out off the four, the crossing workers are only three points in one point. The cause don't cause hence it is not considered as a golden close over. So this is not considered as a golden gross over. And this chart we get do bullish Golden crossovers shown by green on one bill is crossover , which is shown in red. Now let us off the how using two moving averages we reduce the false signals. Do you side with movement of the stock serious? Don't with 500 a. M. Icos and see how using Golden Cross over, we managed to reduce the noise and reduce the number of trading signals here. We do just want rid on that was profitable enough. We also managed to reduce the false in this which we were getting by crossing off price and moving up the charts. No observed this chart off. Amazing. This is a very beautiful Chartoff analysis and shows perfect use off moving Alice here in Florida 50 day on 100 year me, although how many times that to moving Alvescross. But they never intersect hands. The investors remained invested in the stock for so long and meet huge profits from previous examples. Now you must be confident enough that with the use of golden crossover strategy we have reduced it really signals a lot. Now you're perfected place to define the rules off over Golden Cross over strategy. Rule number one is by when the short term moving average tells greater than the long term moving average. But most important is to stay as long as this condition whole satisfied rule number two hours exit the long position When the shorter moving and returns lessons and the longer the moving average, you must be wondering how to decide which combination of moving hours to use. The combination depends a home what type of trader or investor you are used. 90 Emmy with 21 2 year me. If you are a short on trader on a swing trader, that is up to few days of trading used. 25 the Yemen with 15 a. M. If your time horizon his medium term, that is up to a few weeks. You 15 a. M in with 100 a year. If you're trading. Rise on is for few months, that is. You can manage to stay in the stock for few months. You've 100 a year, maybe 200 a. M it if you are longer term investor Normally used by the long term investors, the Straits can last for few years, but most traders or investors use 50 day Emmy with 200 a. M. This combination is most popular among the videos. Now we see how these combination fair on home and you trainings in those we get using practical examples. We plot all these combinations one by one. In this example, if you see a nine and 21 year which are also how many trading signals you're getting, posible you income you will find 13 crossovers or training signals hands. This is good for Internet or swim. Turner's now in this example. Also, we have 15 and 20 friendly year me and here we get five muscles. So why increasing the time horizon? We reduce that reading signals a lot. Now, when we change the combination to 50 and 100 Yemen, we're just getting three crossovers. In this example. We have changing a me 202 100 we see that we just get only one crossover. Hence, this is best for long term investors. This were them staying the stock for longer terms and let them enjoy the dividends to in this combination, which end a moving averages 2 52 100 And this to bigger just one course over. This is also used by all kinds of investor and provide good riddles.
9. Practical Session : Golden Crossovers: welcome to this practical session. In this session, we will see the golden crossover strategy practically in earlier strategy off simple moving average that is a single moving average on price the meter Demaret waas off which shows and also getting many trading signals. As you can see, we were getting so many trading signals and for long term investors, there is not a good sign. Now let us implement our Golden Kornafel strategy. And in Georgia, another moving average into this chart letters inserted to wonder the moving average which is shown which will be shown my dad. And as you can see, we got the golden Cross over at this point, that is the price level. Off off around 412 on we still invested in this stock as on that is February to Holland. 18 on you can notice that we successfully eliminated all the rickshaws and these many trading signals which we got in our earlier strategy. Does implementing Golden Cross over and using two moving averages. Three awarded our losses and also the pain off getting so many trading signals Nuggets back . Does this strategy have been you Gorda? Have you got the crossover golden cross over at this point. That is the price level off around around 300 on you sold at around on the price level. Off off around three. Don't even which was profits off around. Don't even poor share moving further backwards. You can have anything with V Gorda Golden Cross over. At this point, that is. We bought our t 05 but the strange resulted in the loss moving for their backward. You can again see that we Garda Golden Cross over at this point, that is at the price level off around 1 49 on. You can see the stayed invested in this stock for so long. On we go our cell signal. At this point, that is at the price level. Off around pulls down to one that is sold at around two sounds even. And we bark at around 1 46 so you can see any guard huge profits in this straight
10. Perfect Strategy for Intraday /Swing Traders: Hello, friends. This is an important lecture. In this lecture. We combine our knowledge off moving average and mix it with another technical indicator, or stochastic. With simple moving average and a technical indicator, we will develop a successful breeding strategy. We can eliminate many false signals or rip shows, um, lost making trades. Let's define the rules off trading system. Ah, successful grading system is one which is simple yet a vision. We don't need a complex start full of girls and indicators. We need to keep it as simple as possible. So let's see the holes. Please note down the rules off trading system. We will only use 20 and 50 years of me. Rule number one is the 20 days and May should cross 50 days a month. Rule number two is 50 day SME should be going upward, not flat nor downwards but upwards. Remember to details about the entry point. So after the close of water pours, wait for the retracement. Don't accept decisions to end of the year. See, we're the price tech support off until the SME or 50 years of rule number four is you have to confirm a good stochastic stochastic should be willow 40 inch on and buy more. Rule number five is about selling. You should sell within, the stochastic indicates. If you feel a bit confused, don't worry. We will first learn what are stochastic ALS in short, and then we will do not so casestudy toe master This trading system, the stochastic oscillator, is a momentum indicator, comparing the closing price off a security so the ridge offers price over a certain period of time. Generally the period is, or 14 years stochastic oscillator. That is one of the important tools used for technical analysis. This indicated House in deciding the current momentum when comparing toe high and low off the story, except him for more support and resistance levels disintegrated his days. No assumption that in an a poor trending market, the price will go near to the day's high and then downward trending marker. The prices will go to the day's loop. There, two lights plotted on a graph along with the priceless. First is the percentage killing. On the second is positives dealing. We will not go into the detail off the calculation part. Generally, that look back we got is 14 days that is this indicator used data off last 14 days. These lines generally show bullish or bearish crossover strength off upward or downward emerges or overboard soil conditions. When a person is gay, line rises above the person dealing. Then it's a buy signal. And when it falls below the percentage dealing, then it's a sensing them when percentage scaling crosses about the person dealing the securities, gaining at a fast momentum than the average, which is really president did what percent is dealing. And it is so by signals off signal is seen when Percentage K line is crossing under the person dealing. We showed the security marketers declining. If you still feel a bit confused, then don't way. We don't want to get into deep into stock aspects. We will love how to use them in our trading system. In a more practical, let's move straight with the practical example alone. How blue stochastic on our trading morning. Let's move straight to practical example and learn how to use stochastic on our trading model in a step by step manner. Here we plot or 20 days of me, which is shown in blue on a 50 days. I mean riches Sure invent the first buy signal. Asked what the liberals get at point A when the 20 s and make crosses about 50 days and we check 50 days, I mean, which is moving upward hands. This condition also holds true. Now we move on to the stochastic and see that it's over for two knows hands. We drop this, Fred and later we see that it was actually waterfalls by signal. Another buy signal we got at point B. But the 50 day SME Waas trending downwards hands who will do is well it it more what the stochastic it also about 40 level Has he successfully awarded this frayed? It was actually a lost making trip on board locations. So we are saved from boredom. Waltzing knows we take another example and draw 20 day simple moving average on a 50 day moving average off the chart along with stochastic off, though from left to right, observing from left to right, we get our first by signal. I pointed we're about one and Rubio are holding good. That is 20 years and we crossed 50 sme and 50 days away wasn't a portrait. But then we see stochastic it waas about 40 level hands. I want to stop here. Victory later. See the stock rental the side with more. Stop the interest at one V toe touch 20 days of a but still stochastic waas over 40 level. Hence we drop the decision to enter the stock and this press level now moving ahead we see app onesie That's talk again Took the pressman to 20 years of me huh? When we check stock it short Willow Portillo on in my more no moving ahead the sea etc that stock again to greet This went toe 20 days of me on when we check the stochastic it sure that it was below 40 level and inviolable which is black line above redlining So this point we entered the stock on we went on to make a decent profit. You know, this chart had lots of things to learn although how we successfully eliminated the side with me for a long time and actually entered the stock when it was really interesting
11. Practical Session: Perfect Strategy for intraday / Swing Traders: welcome for this practical session. In this session, we will learn how to implement the training strategy, which we learn in the in the political class. Next on. Awkward First a lot in the 20 day and 50 day simple moving average. First of all, we will insert 20. They're moving hours and that's a sign the color green to it and then we will insert are 15 and moving out of simple moving average. So you inserted bowled off If today and border 50 day and 20 day simple moving average on Let's start the back Testing off the overall strategy. We will also insert the stochastic. So we have inserted the stochastic and just changed these levels to 40 because I asked for our started. Either stochastic should be below 40 levels and then buy more. So as you can see the there is only one line that is 40 because we have changed board the levels to 40 by the Ford Dealer quantity unity. So that start the back testing off strategy on you can see that *** by signal, that is 20 simple moving average off 20 is crossing the 50 day simple moving out, but at this point So we get a buy signal at this point. But according Toa a started, you should wait for retracement. That is the pressure. I don't cook that wanted moving hours are 50 day moving average on the stochastic level should be below 40 levels. So if you see the moon off this talk, this talk has not least faced back. So either quantity moving a radar 50 day moving average. At this point, you will notice that it has replaced back toe. Continue moving out. But when we see the stochastic, it is not in by more. And also that is it should be up for Trin So Well, you see this, Uh, notice that at this point when this has new trace back to 50 day moving hours Um, the stochastic is also below 40 levels and also in Bible. So they buy the stock at this point, that is, are the price levels off around 13.21 and we will send the stock asked for are moving average strategy. That is when the longer moving average crosses the shorter moving. At least that is our around this one that is we bought at around 13 points, 16 on We are selling at around a 26.14 so there has been a huge profit in this trade. Let's move forward and see again again at this point this shorter moving average that is 20 day moving averages, crossing 15 moving hours. But and it has depressed back at this one. But when we see the stochastic, it is not in buying more. Only a this point the stochastic has stunned into by more. That is, it is showing a poor train on below 40 levels. We will buy around this point. Ah, that is at around 27 points. Celtics and you will sell ask for our moving average crossover strategy that is at the wrong at around 31 that is a bar Get around Qantas owner and we're selling at around 30. So it has been some marginal profit in the street. Also noted that stock is moving, has some site with woman and, as we know in moving out a strategy when the stock is willing inside with more, this does not for Wade much profits again. Moving forward. Notice that at this point, also, the shorter moving averages crossed the longer moving out. But when we see the stochastic, it is about 40 loans Onda, we will wait for retracement off the stock on it has be traced back to short of looming Ever get around this point And when we change a stochastic it is about 40 level Soviet again so even again or my at this point And if you see this forward that again notice that if you have bought that on this point the stock wasn't sighted businessmen and, uh, this trade would not have been most profitable Let's move forward again. At this point we get ah golden Cross over but and we wait for the retracement off Stock and stock has retraced after on this point but those stochastic again is not in by more. So we don't get this, Fred, Let's move forward on we again and gets a viable we again get a golden because over at this point. But stochastic is again about 40 levels on when we really wait for the retracement on retracement. Also at around this point of stochastic is again and by more than below 40 levels. So we buyer at this point that is around 61 on. We will sell at around this it D Jessie ho profitable, discredited that we are buying at around 61 we're selling at around 80. So there are there is profit off around 20 per share. So this is how we have backed us, turtle A strategy. And you must have noticed that we have eliminated the rickshaws and many false signals which we get in the market. So looting this strategy, we can eliminate many false signals on make our crates profitable.
12. 5-8-13 Moving Average Strategy for Intraday/ Swing Traders: Hello, friends. In this lecture, we learn an important intraday and a swing trading strategy. Car five Year 13 strategy. As we learned earlier, that exponential moving average is preferred due to its tendency to follow the price called more closely. Most traders used here may over SME toe get more trading signals has in this strategy we use three year me with 5 13 period. Ask your research. This combination has proved far more profitable than usual. 5200 combination Before starting, let me tell you that the charts starting our most important for any technical analysis. If you use wrong, start setting, all your trading decisions will get on and you are bountiful. No, the charts charting their based on the time horizon off radar. First, you need to know what your investment horizon or objective is for. In ready the time should be 15 minutes. Usually seen a top of the chart on below you to select one day. If you die word from this combination, you will get wrong decision points. If you want a swing trader, the time should be one hour and below you shoots like seven days friends. The fiber turning strategy in war, exploding the three different moving averages to generate, buy and sell signals. By using three moving averages off different controls, we can confirm whether the market has actually witness a train or whether it is only resisting momentarily before continuing in the previous state hands. The third moving average place a great role in checking whether the trend is really lasting or not, because of using three moving averages by signal is generated early in the development off a train on a cell signal is also donated. Early hands were safe from potential loss. Do you do more dip in the stock price? The start moving averages used in combination with the other two moving averages to confirm or deny the signal degenerate. This reduces the probability that we will act on a false signal. Let's understand the strategy more with the help of a practical example. Focus on point here we're all moving. Averages are changing direction. Five Iemma crosses below the other two year me hands, giving us a signal to sell also in order distance between these three moving averages when they are in train, if their distances less than the trendy shore and it's about two rivers, which you can see in this example If the distance between the E. M is large, then the trend is very strong. Know that we have used the indicator adx in this example. Now we will learn what are ADX is in a very short French as we can see that simply deploying three moving averages also leaves to fall signals. Now we try to make our strategy more solid by deploying and using the indicator court idiots with this car. Avidan Directional Index. Here the X is most profitable and least risky strategy to use with friends. Idiots measures the strength and weakness of the trend regardless of whether the market is up or down. Value off adx oscillates between zero and 100. Now let's see Ritual you means what, if any, excess between 0 to 25. Then the trend is absent on the market is inside with woman. Hence we can award reading even if moving every suggests buying our cell signal. If any excess between 25 to 50 then trend is fairly strong, and we should pray during such markets. French Early example. Fifties very rear, but if it still offers it means very strong plan but transferred idiots above 75 Really sustain law has a very excuse. Very good results in volatile market like commodities and forex. Standard period for calculating areas is 14 days, which we should not change. If you look at our examples, where alias line is represented as black color line oscillating between zero and 100 along with the idiots, you would see a directional index to these are plus D A. That is plus direction index and minus the I that is minus direction index lines When plus D A is above minus D a down. The trend is upward when minus d a about plus d a. Then trend is downwards when plus D A crosses minus the A signals. Then there are bullish trends and wife or so let's understand this. With the help of an example, you have to do wired this chart into four parts. Focus your attention on first part Jozy Nets Dog is not ending that is stalker than side with woman. When you see ADX, you will see its oscillating around less than 25 levels, hands guiding us no to trick dated in this market at current levels. No focus on second park Here you will see. First talk is trending downwards down there, this trending upward. If you see the adx, it's more than 25 that is, the trend is strong. Hence, Part two is ideal. For two years. Let's focus our attention on third part here. Notice that 80 X is less than 25 and hence we can see from price movement. Toe Stark is moving sideways and idiots is helping us. Not to mention in this talk at this time in four part we against an apartment and hands idiots to his more than 25 11. Again, this is invitation for creators to take position in this stock. I hope you guard the 80 x point more dear. Now let's apply fiber 30. Strategy in practical In this shark five DME is showing red it by blue on 13. My green report fiber 13 A. M on a chart and also floor areas go at the bottom. Let's focus at point in the chart where shortest Iemma crosses the other. Do you hear me disintegrates? A buy signal, but it is actually a buy signal, or is it false in them? lecture. Let's find out what the any axis the idiot is below 25 levels. Will plus de a shown by Green is greater than miners. D A. Which is shown by Bread, has this is actually a biasing them. Hence we buy it is around 3 60 levels and stay in the stock till idiots is in trend. We exit the stock when plus D I becomes less than minus D A. That is around 3 80 levels. Nor that's still short on human. That is, Red Line is moving above all moving averages, but we short the stroke before Red Line nor dirt still short on the Emmy, that is, Red Line is moving above all moving averages, but still we short the stock because Red Line crossing the other two northerner still short on the Emmy, that is. Red Line is moving about all moving averages, but we still short the stock. This was business our analysis off idiots. So we get profit off off around our own 20 pusher in this stock V. C. Another example. Before taking a live example, focus your attention on point A were red line that is shortest. Iemma crosses booty Emmys and see if it's really a buy signal of knock. Yes, the red line crossed above the other two Emmys, but when we see the ADX, it's still showing less than 25 with minors. D A about plus d A. As we don't take trade. And when videos of the market you just see that it was a side with woman. Hence we were seated from a potential loss or marginal profits.
13. Practical : 5-8-13 Moving Average Strategy: Welcome to the spectacle session in this session. Vigilantly window fibre. Total strategy. Live on a jar. As you know, five or 13. Strategy is very good for internee and swim trailers. Now let's start by plotting 58 13 moving averages That is exponential moving averages on the chart. Next minute this has fight and exponential made the colors green. And now another moving average no less. Here on exponential again color, do it as blue. No lecture. Our start moving average, not a starting are getting exponentially. So we have added 58 and 13 exponential moving average. Now, the most important part of this started years that the second step is we need to set it as 15 minutes on. This should be one day have the bottom. So we have made a chart settings and now we will start off study. We even see, first of all, by simply using fiber 13 strategy as this is an independent strategy, it doesn't need any indicator. Only four comes over to investors who can use areas for the confirmation basis. Now let's start the back testing off the started. He I know that this green is fired and blue is idiom me. Um who ran his 13 year? Me and we have sandwich are settings to 15 minutes on one day. No, let's stop notice that we get our first by signal at this point when the DME shortest era closed both the unis And if we have bought the stalker around this point, that is at the price level. Suppose that price level four on 500 Onda we get our cell signal when the shortest Iemma crossed the next higher Yemen that is fired. That is it. So we have sold the stock at around 506 which we have bought it off around 500. So there is marginal profit in that again. Let's start back casting a there again, we get bar signal at this point if you bought at the price off around 506 at this point and sold land off sharp STM across this model Yemen at 509 So there is again a profit. So as you noticed, this 5 30 Munyonyo strategy is very good for internally and for intruders because this is the most simplest form off trading on and it doesn't require any technical indicators or any other complex chart. And you can see this is very much profitable. Now again going back. You will see that at this point. Also, we got a buy signal and at the range of 503 on, we again going to sell signal at 505 at the no. Going back again. At this point, we called the buy signal at the price level off around 51 it suppose you bought at this point on, we gotta sell signal at 519 So then this is profitable grid. Now again, we go buy signal at this point when green moving ever. That is sort of moving. I was crossed and we bought out on Fight on six and we got to sell signal Act 518 So, again, that is marginal profit again. If you start back testing going back, you will have been See that this is a very profitable strategy. You will notice that the all signals were we every leave. The false and most off over trades are are profitable, though the profits are not asked. But still they're profitable there. No more loss making creates. No. Let's turn our technical indicator, idiot. For more conservative investors or traders, any ex helps in in conformation off the trend. That is how strong the trend is. If it is in the idiots value, that is, this black line is about 25. The show that the trend is very strong, so more conservative with investors, can are the technical indicator areas to conform their trade that if the trend is very strong or not So let's start back testing this So again, we got the buy signal at this point. Andi, if we check the theory X there than idiots is not showing the buy signal, that is, it is not above have a good level of $25. The trend is still not from so at this point, it is showing that the friend is strong. So let's start back testing using idiots. Indicator on. You will see that at this woman. Go for We are not getting the buy signal from idiot that because it is below the 25 level has he not by at this point now I'm going back again. We goto buy signal at this point, but again the areas is very loaded is around alone. So So they show that the trend is not much from and we won't get much profit from the street. So again, we So then we register yourself from taking this Fred Andi, as shown in the future that it was not much profitable going mark, uh, this point Also be got a buy signal. But again, the trend is not strong, which is shown by the areas the level off around 13 going back again. And we see that again. At this point, we got a buy signal, but but the area it is not again about 25 level though it is that around punditry, if more risky trader can take the trade at this point on which was shown that and going back again at this point, you get a buy signal. But the trend waas but the idiot waas above 20 level, but not in by more, because minus d a line is above plus idea, We should have plus D a about minus ta to get to buy signal going back and this point also , we gotta buy signal but the eerie exes again below. But the reality is again below with 25 at this point also, if you see me that the idiots as 11 which is not strong, friend If you see at this point the idiot is showing 29 that means the trend is very strong . Look, it is not in buying more so we resist ourselves from taking this trade and it waas You can see that the trend was from but the market was showing side with woman. So this trade waas not much profitable so you can see using adx We have eliminated many trades which were not as profitable. So using idiots we only take those traits where the trend is very strong and hands up marginal profits are also very large. So friends the dis lecture we come to the end of the scores and I a tanking for taking this course hope you have learned a lot. Daughter trading strategies were very simple and I have not complicated these matters intentionally because if you keep your trading system simple, you will gain a lot. Trading is not about using many complex shots side by side. Happy, clearly unhappy enlisting
14. Bonus : New Dip Moving Average Strategy : welcome to this bonus lecture in this class. I will demonstrate to you a special strategy developed my me on deciding went toe under the stock. This tragedy, health and giving Marty bag returns over the years. It is a simple to use strategy. You only need a technical India tower called moving average on a stock price. Yes, it's dark, simple. No need of complex starts off formulas. This is best strategy for long term investors. This is not for interrogator or people who want to be rich overnight. This strategies for patient, long term investors who want to see their investment group multi fold over the years. The best thing about this strategy is that you don't need to have any technical or fundamental knowledge to implement this. It's dark, simple. So friends. Let's start with the detail overview of the strategy in the valuations Morning. We have already learned what I'm moving averages. I repeat that again, moving average with a simple technical analysis tool that's moves off the price data by creating a constant updated average price at 200. The moving average is nothing but the average of last 200 day closing price off the star every day. The average off last one today is calculated, and does we get a chart showing 200 day moving average? This example shows a simple moving average plotted on a chart. As you can see how the 200 day moving average Smoothes out all the noise in the price movements, Our strategy and walls use off these two things only that is rice and 200 a simple moving average. Another point to note is that you should use only fundamentally good stocks, which we get after financial, business and management analysis. So here go the rules off our strategy. Number one is you get a buy signal when the stock price goes below her toe under the simple moving average. Second, we get actual buy signal. After wait for five trading days, you should check if the stock price is still bloated. Wonder the simple moving average. If yes, then by on the 50. And if no reject the buying decision and more, the tournament is determining the Louis price no down the lowest price we just talk has during these five days this will act as a point off next churches and when the stock again hits that price in the last up. Women let reminded new dip and used this price as the base price for our father buying. Next, understand the started you with the help of an example. Please know that setting off the charge should be one day at the top. In the above chart, the stock price cross below the 200 day moving average on 11 November 2000 and 16 So this will generate a bicycle. But we will wait for five trading days toe comer to actual. By so fifth training, they happens to be 20 went off November 2000 and 16 and we see that still, the stock price is below 200 moving average. Does we buy this talk on 21st at around pieced 605. We also know down the new dip that is the lowest price with the stock worries, that is rupees 613 which happened to be on 21st November 2016. Now our next porches will happen when the stock crosses this new dick, which happened to be on 19 December 2016 after a P 603. After this, they will wait for new tiptoe happen, which happened on 21st off December 2016. We mark this as our new the atrophies 5 91 and noted down. So next time when stock crosses dis mark, you even buy the stock. Hence we buy on 23rd of December 2016 at around 5 91 after this again the beach scene process and wait for new to happen, which happened on 26 December 2016. After please 574 mark. This has new dip and wait for the stock Cross description mark. But this never happened. In the current face, I have defined the phase a speaker doing with the stock price is trading below 200. The simple moving average was the stop price crossed, the moving average from down toe. Our strategy stops. You never went in the stop rates of over two moving average. When next time the star crosses 200 day moving average from up to down, we again start looking for buying. Using over new tips started, you'll question why to wait for five trading days to make our by when stock price courses moving average from up to down. This is basically to eliminate A with shows that is false by signals I have seen back testing lots of stocks. This is the perfect waiting period on this five day waiting beard helps in eliminating many false windows and non profitable opportunities. Does. With five riveting beard, we successfully 11 a side with movement off the stock market. If you are still confused, please see the practical session after this lecture where I will be most feared. This started you with practical example friends. This strategy, which is back tested by me over the years, and you can also backed as the strategy before implementing, stick to the started you for long terms and don't judge the strategy for less than one year . This strategy is best for long term investors who want to build your belt. Let's see some back tested results on some of the stocks with good fundamentals. We first look at the result off electrical plants of stock levels. In the first column, you can see the date approaches. This is basically the fifth trading day after stock price moved below that wonder. The moving average. Next column you will notice the price of perches on. After that, you will notice the new dip. Daschle The next dip in the price that is Louis Point reached after the current portrait of talk in this example, we do the analysis for the period 2010 Toe Torrent 18. You can back us for the Also, we assume that we buy only one share on these days. Last column is off. The latest profit profit is calculated by subtracting the current market price by the purchase price. So here we have current market private as rupees 4 98 minus price of purchase that is, looking 64. So vigor the profit as rupees 4 34 for the purchase off stock underhanded. Similarly, we calculate the profit for all other dates. At last, you will see the total invested among in stocks as rupees 2593 and the profit are known. D share the rupees 5375 does. We aren't a healthy return over all 207% from 2000 and 10 to 2018. Next we go back testing on us talk Amazon on. As you can see, using this strategy, we've made the returned off around 479%. Similarly for Indian stock. Yes, Bank. We are under the down off 1 94% which is indeed a great return. Next we back test another US talk apple and over the years we got handsome returns off around 88%. Next, we backed us. Asian paints one of the major paint manufacturers off India. Here we get another good redone off 63%. Lastly, you see pretty light industries there again, we got a healthy down off around 275% does. You can implement a strategy in your investing and on healthy profits during your long term investments.
15. Practical Session : New Dip Moving Average Strategy: welcome to this practical session on new lip strategy, Friends. As you can see, this is the chart off Microsoft Corporation. And, uh, I'm showing you how to in tremendous new lip strategy. So, as you can see, this is the 200 moving average shown by the Green Line. No aspect of a strategy as soon as the price goes below the moving average. At this point, Decision were never buy signal, but our actual by is on the fifth day off this day, that is on 27th off January 2015. The price cross 200 day moving average. So the fifth day from this course over will be one do 34 and five. So vivid buyer. At this point, we will make our actual by at this point. But if you will also know down the dip that is the Lewis Price which happened on does, dear. That is 30 January 2000 and 15 and the price work on the price was $40. So though we will make our buyer this point at 41 we will mark dippers $40. So next time the stock crosses this mark, that is $40 women again Makeover purchase. As you can see, the stock crosses this price on. Yeah, I don't here. So at this point on second off, after input of encrypting, we again make approaches. And we also know that the stock has not closed toe, not cause the moving average. And as you can under the stock has not crossed the moving average still here, and I don't do the strategy only applies till the stalk is below the moving hours as soon as a stock crosses above the moving average. Our strategy stuff and you don't see any buns when the stock is above the moving average. Let's see another cycle next in the second, when the stock is again below the moving average. So as you can see the stock roast, the moving average on continued off August 2000 and 15. So the fifth day from this crossing is one. Do 34 fun. So given buyer at this point and mark and mark this point, that is $40 as the dip. And as you can see the stock never these this point during the cycle, render during the face. When the stock was below the moving average so you don't get any buying opportunities in this face. Let's see if there is another cycle next in the second. So here also the price cross the moving average at this point. Now, let's see the fifth day from this point. 12345 all Sorry, one do to see full far. So I by at this point on this day that the sound in June 216 and at around $50 and mark this This was the lowest question this did. So I mopped this hands the get and see vendor stock again crosses this point. Now, as I can see doing the this phase this phase actually below the moon never stop till here. So I never got any buy signal in this face. Now, when the storm goes about and then comes below the moving hours again, our strategy starts. So from here rules by on the 50 that is 1234 five. So we buyer this and mark this as I would but and mark this as New tip and again you can see that stock never crossed. Never released this point in doing the current face. Nexium. There is another cycle, Lexie. This circle on the starters below the moving average. So the stark enters below the moving average on this date, that is 19 May 2000 and 10 at around continued dollars. So on the fifth day from this is one, 234 and five. So we buy it around this, that is $25. And mark dippers, $25 had a $25. So, Dishman actors as over there? No. Next time the stalker and does this price, we will again. Dad will act as our by signals. So the stock again hits the this price on eighth of June will turn, turn, turn. And then we make our buyer this point the stone gold still here. That is 24.82 And we mark as our newly as this. No, again, when the stock reaches this point in the same face, we will by the stock. So on 24th of June 7 turn, we again make a by at their own 24.75 But the stock makes another blow. That is 23. So we make our new defense 23.2 And we will buy the stock again when this stock reaches 23.2 in the same face. And we see that the stock never reaches this this price again. So we only got so we only got 23 buying opportunities doing this race. Now I'm going to stop again. Gullible. We against Off! Stop changing the stock. And when the stock again, let's be start over strategy again. That is on fifth day, that is 1234 and five. Sorry. 12345 So I So we buy it on this. And good, no as this. So we buyers around this with Louis This So next time the stock again courses this point, we will buy. So we fire this point also and this Golden Tomei disloyal. And next time it again regions This So if next time the stock again which is just price, we will have been rikaby But the stock now everything this price so we'll never know by opportunities that off for the stock Friend Hope you know the strategy. If you have any quality on the strategy, you can message me. I will make all your questions clear. Also, you know, down the advantages off this method with this matter. We are getting very less my signals. But we are buying it lower prices, and thus we are gaining a lot in long term.
16. BONUS : Predictive MA Strategy Theory: they won't go this bonus. Morning. I'm happy with the response of students I'm getting and how useful this course has bean in their investment as well as Freddie. So now I'm adding another strategy which will help you in predicting future highs and lows off the stock prices. Aan dat with just shooting moving averages, I have to start the baby use moving averages a bit. Pay attention to the baby. Implement the strategy. The examples in this lecture are taken from US, Malaysia, Singapore, UK, Australian and Indian stock markets. Examples are also taken from CRYPTOCURRENCIES like Bitcoins and IT Syria. I will also show you implementation of the strategy on commodities like crude oil does. You can apply the strategy in any market or as a class friends. Stock markets, always working swings on these swings, along with moving averages, health and predicting future high sandals. The pattern shown in this box is the most important chart pregnant, which we often see on charts on. We will use this chart pattern only to predict our future highs and lows. Show friends. If you can find this pattern in the formation off moving averages, then this strategy can be applied very easy on this is one suspect on very easy to look and frequently comes. So first thing first, what are the charts settings to use? It's very important to set the charts in the correct way so that this strategy can be implemented successfully. Any mistaking chart settings will result in wrong trading signals, so you should check your charts setting stories before implementing the strategy or any strategy in this matter. We will use just two simple moving averages, but video twist. So first, put your charts settings to one hour at the top in first moving average. Make the period a tartan sources high, that is, we're using only high value on off so industry, that is, we are shifting this moving average toe three periods, right. Similarly, our second moving average with same period as 13. But now sources low on officer industry, that is, in this moving average, we are using the low price. Please see the charts earnings there simply make the charge settings. Ashton, that is the Peter this 13. I feel less high. The type of simple moving average and officer has three. Similarly, for second moving average V select the sources low on all other perimeters him. When you plot board is moving averages, you will get chart like this. As you can see, these moving averages never insight or makes a crossover with each other as we have learned earlier, So can you answer wire? The reason lies with the crystal used during plotting. That is one moving average of this high price, while other moving every use low price on also the petered off board being seen hands. These are always almost parallel to each other and never on site. Now let's focus our attention to the swing highs or peaks off the price chart Board top and bottom. Our swing I is the point off meeting off uptrend and downtrend while swing low is the rewards off this ash on here. A swing highest form when up Trinh mutes reversal like this. So at this point that is here vigorous swing high. Similarly, in this figure, where downtrend weeds opera in our swing, Louis phone hands this point reprints downswing or swing low Justus price movement forms upswing and downswing. The moving averages, also from crests and troughs as you can see in dish, are Upperco formed the crest and Locos from the troughs. Can you identify the crest off high moving average and the drops off little moving average ? Just pause the video and identify the crests and troughs. Hope you have done exercise so the crest off high rolling average are shown by sea, and trusts off low moving average are shown by T. No, don't carefully as these form the basis off our strategy. So by now you are comfortable with the swing highs and swing lows in the price char and also it crest and a trough in moving average. So let's move forward and find future highs. Now what you have to do is marked engines or trendline starting from the clear soon high. So the next crest off high moving average example. Just start from the top of the candle, representing swing high and just make attendant like the studio next crest, which high moving average has. So in this example of the stock levels, you will see swing high at this point and crest. At this point, when you draw the attention, it falls at this point and intersex the moving average at points A and B, respectively, Now for was your attention between points A and B. Now, here comes the holy Grail of the strategy. You will most probably get high between these two points. That is, points A and B. And if you are so carefully in this chart, you would indeed see that we gotta hired this point which lies between points A and B like to see some more examples in this example off. Yes, man, You will see the suing high at this point and crest at this point, when we draw the attention or or the trend line, it intersects the moving average at these two points inside the box. Now, this will solve our the future high that is, at this place, we will most probably get a future high. And as you also the chart carefully, this talk indeed gave up high between these two points, though the highest not dark big, but we still got a swing high. You will let us see in our trading strategy that even these small swing highs result in profitable trades. Let's apply over concepto Cryptocurrency Bitcoin. As you can see, we got a clear soon high at this point and we get crest at this point now make the tension and no down the points of intersection. The engine or trend line intersects the moving average at these lines and as you can, although carefully, we gotta swing high between these points. Hopefully, now we're comfortable with how to predict future highs. Using moving averages lets you find an example, and then we will move forward to finding future lose. Let's improvement over concept in forex. Now here you will see a Euro U S dollar chart. You can see we got a clear soon high at this point and crest at this point, when we make Kenyan door trendline, we get intersection at these two points inside the box, And if you observe carefully or the chart you will notice, we get a swing high. At this point, Another tiff I would like to give us that I were doing my people swing highs like thes initially, that is, while you are in learning face so currently used clear soon highs and clear crest. Also a white moving every skulls with certain bumps or pointed cuffs. After practicing, you can use multiple swing highs, to which I will explain later in their training model of the strategy. Now let's shift our focus on how to credit future lows. This strategy is Samos finding future highs, as we learned earlier. But here just use swing, lose and next truffle market engine and does finding points of intersection. So inside points of intersection we will most probably find future. Look, I will start with forex in this Euro U S dollar chart, just although that we have a clear swing low at this point and trough at this point Now we mount attention nor trendline. Just look at the points of intersection between this box. He noticed that how we got a low between these two intersection points again, let us cleared the concepts with some more examples And here you can see the example of Bitcoin. So here we got a clear swing low at this coin and a trough at this point. Now mark the tension from swing low the words the next room and we get points of intersection between this walks here again off the off the chart and you will find that a chart is making swing low between these two points. No, let's apply ever concept. Let's start now. Here we can see Ah us talk Netflix. You can see the clear swing lower this point and profit at this point. No, When we made Kenyan, it intersects it the point inside this box and you can although we are not getting perfect swing low between points for intersection. But still we're getting almost low acid of the year award doing sudden bombs or pointed moving average calls. As you can see in this example, we will a wired. Using the strategy at these points softens with distracted. You have increased the probability, and chances are predicting future highs and lows. And if we somehow managed to implement this future predicting strategy in the war trading, we can make good, consistent profits. So friends still, if you feel confused, then more Oneto The next practical session where I will show you implementation of the Strategy on Life chart, mastered this art of finding future highs and lows and what types of pattern to see and how to put on you and on the go. Only then you would understand how to create or invest using this strategy sovereigns. After practical session, I will demonstrate you how to implement the strategy to develop, are consistently profitable, creating system
17. BONUS : Predictive MA Strategy Trading: welcome to this lecture. Now we build upon the basics which we learned in the previous classes on implement our productive moving ever strategy to build a trading mortal. First of all, look out for the formation off worker or trough in the moving average and the Lord mont attention from Lord of Off the Candle toe, the next lower car off low moving average. You should ideally look out for the baby formation in the moving averages. This baby formation is the first indicator that we can apply our strategy agile one. Although we got our desired very pattern ash on in this box. In this chart, you can see I have made the trend line starting from single That is this point. Do the next moving at a stroke. That is this point. As for the concert alone between points of intersection, that is A and B, we will most probably get a low in the next up. Look out for the formation off Crest and Upper Swink. Oh, that Is this also in order, this Danyon should make its fall on the next crest before the intersection off load engine falling off height engine before intersection off Lord Kenyon with moving averages gives us the conformation to proceed for the trade. So then we get this conformation signal. We go for the by between points A and B, and we will sell between points. See Andy, which are the points of intersection off high tension with moving average on a place where we will mostly get a swing high. I young and repeat that high trendline or engine should fall on moving average before the Lord and Line makes intersection with moving averages. This point is most important, and this only gives us confirmation to proceed for the trade also in order. This talk in this example indeed gave us a low between points A and B on high between points cnd Hansen sharp intrasection off lope engine gives us by signal an intersection of high Tanyon gives us the cell signal. Lieutenant should enter the moving averages after high tension makes it fall on the high moving average. Go because only then we will get confirmation that, yes, we have to take part in the street as no matter Howard record that red looks just leave and move on sovereigns. Others had the intersection off loader and lined with moving average gives us a Beisel. But the question is how to buy in that zone. Now let's see how to by using our strategy. As we learned earlier, our bison will be ash on in this box, Dad zone between Lord and Line intersection that is zone between Lord and line, intersecting the true moving averages. No, the question is, we don't know for how long this trend line will remain the bison, But that is between this intersection. On average, I have seen that you will get around 4 to 5 candles with our chart settings, so whatever amount you want to invest divided into four parts. Example. If you have $100 to invest, then do I didn't do four parts off off $25 each for the rule of buying. Artist follows now as well that our Lord in line or engine and just moving average by own very first movement or say very first candle. It doesn't matter what surprises hence we buy with one Ford amount in this stage. Now for second round opportunities. Vaid for the second candle to go Lord and First Candle as well as priced if Lord and leave a scandal by using your second law. Similarly for the third round approaches by event of price def below the second candle or previous low again by at fourth candle Using this simple principle No, you ask a question. What if the price doesn't below in next kind of that IHS second and third and so on. So in this scenario, we don't go for the purchase and we stop buying for the No matter how attractive the position may look, let us understand the buying started unity. This is zoomed in one hour chart. You can see our by more is in between points A and B. This is the reason we're Lord Dungeon cuts moving averages. So let's start as soon as the trend line cuts the lower moving average we buy. First Lord act very first candle. That is this candle which is represented by one. Now we will wait for the second candle That is number two to form. And as soon as the price drops below the first candle, you will by the second Lord. Unfortunately, the prize and second candle never drops below the first candle. Has we do more by similarly in third candle we skipped by now we focus on formation off fourth candle As soon as price drops below the lower vehicle First candle that is could even slow. We will make our purchases with the second Lord. Similarly, we make purchase with Third Lord as soon as the price Gross Lord and the previous look that is low fourth candle Now. Now, after this, the trend line across the upper moving average and does our buying bone is over. So as you can see, the only guard just three buying opportunities and dizzle no guns. Important part. That is how does in here also divide the Lord? You purchase into four parts so as soon as opportunity line or 10 and cox the moving average. We will get a cell signal but we do not select very first candle here. Wait for first candle to form completely Now at second candle as well as the price Move above the first candle immediately sell one lord No. Let second candle form fully and wait for starting off third candle again when price walls above the previous high sell another lot like this shelter and four o'clock No a case may come. What if we get only to your lesser candles in the intercept or seldom? So in this case, sell as many lords as possible during the intercept face on cell remaining lot on the very next candle after trendline, Leave the moving average. No, there is another case. What if Price never goes above the first candle for the whole intersection? So in this case, it doesn't matter. What surprises so whole lord are very next candle. When the trend I leave the moving average with back testing, I have seen even this results in profit most often hope you wonder for the to report off this self strategy. Let us understand off selling part in to deal with this example, I have again soon in the chart here focus on the zone between points See, Andy, we're Hytrin line intersects with moving averages on Does make selling home. As you will notice, we're getting seven candles denoted by 1 to $7 selling range. Let us discuss the selling strategy in today. As soon as the trendline enters for interceptor upper moving average, we stay away from selling at very first candle. Unlike the buying stage. We will let of first candle form completely and wait for starting off second candle. As soon as the price crosses above the first candle. That is upper week off. First candle, we will sell one lord. Now forget about second candle and let it form completely. After this visit for third candle to start and as well as the price cross above the topic off second candle, sell the second. Or but in our example, we see that prize during Third Candle never moves about the topic off. Second kind of Similarly, the card by in 4th 5th and sixth scandal due to same reason. Knowledge seventh candle. As soon as the price moves above the previous high, that is high off second candle, we will sell the second Lord. Does you'll notice that we got only two selling opportunities in this selling zone on a Z meaning lords, You can sell it very next candle, the moment trendline. Leave the zone after some accidents. In this strategy, what you can do is sell all remaining lords in the last candle. That is seventh. Now, the question You might ask us how we can make out that this will be the last candle and buying zone or not For this, you can easily make out that trendline and lower moving averages about to meet. And there is no scope off further country to form. Notice the Golden Circle. Good practice. You can easily make out if the current candle is lost or not. We like to see some more examples. In this example, you can see a pattern forming an Amazon stop. And after meeting trend lines, we get this as by zone and this has our cell. Northerner. This is a profitable trade with minor prophets. This is an example of us talk apple here also, after singing a very pattern, we can make our trend lines like these and we get this have ever Beisel. And this is seldom You can see we get profits off around this industry here we against the example of us talk Apple Onda again of NBC Formation off gave in the chart our I should letter so in the shot, After making trend lines, we get our bison as this and sell zone. It is as you can. Although we didn't get much profits industry as the previous one in this example, let us example off UK stocks Centrica PLC using similar strategy. We plot the trend lines on the moving averages and we get by zonas this and sells on Is this as you can? Although this is a more profitable trade. Friends, The motive off showing all the example is to show you how to select the pattern and how amount of trendline and there were selecting the bison and sells well. This is the holy Grail of the strategy. If you can precisely selector, buy and sell zones, your 90% task is over. You like to see some more examples. This example is off Australians talk energy or vision. After getting the pattern and applying over strategy, we get buys onus this and sells all of this as you can. Although this trade resulted in huge profits, let us supply was started. You do, Cryptocurrency in this sharp you can see very pattern in the Bitcoin chart and when we monitor attendance, we get desires by zone and several as you can. Although we're getting handsome profits from the street again, we see the example off another Cryptocurrency Italian and here we get the readings on status by and cell phones as these further you can see we're getting good profits from this trade also. Now let us apply the strata. You took commodities here You can see the chart off crude oil. And when we get our very question, we apply your strategy and get these to us. Buy and sell jewels here. Also, we're getting good trading profits. We like to see another example of crude oil here you concede a beautiful way formation in the chart off group. So we marked the high and low trend lines from these two swing highs and swing lows. Unfortunately, district didn't give us much prophets. Last example I will take from Forex. This is Euro U S dollar chart on applying our strategy from these two swing highs and swing lows. We get these points in the circulars, buy and sell jewels respectively as you can. Although this trade was highly profitable. Oh, good. So many examples. The concept of the strategy is cleared. In the next lecture, I will show you real demo on a chart and you can practically see that this very formation or wave pattern is very common on any chart and does. This strategy can be used often. Dough. I have court every permutation and combination possible. But still, if you have any law, feel free to message me being an advanced level strategy. It may take some time to learn, but once perfected, it will result in many profitable creates and renews your loss, making huge profits. One order is not the goal, but getting profits on a constant basis is the real goal off discourse. Lastly, I would say implement all the strategies, mentioning the schools by first practicing or paper trading before going for their Devon life markets.
18. BONUS Pred MA Intro(Practical): Hello, friends. Welcome. Go This practical session. This is a chart of Bitcoin And let's start with the settings of this chart first. So and the talk, you should select one hour. So now the chart has changed to one hour Settings on now are two moving averages. So we're ready to moving averages. But we will change the four settings. Lander starting. So says hi Andi. Officer three election. The the color and thickness off this moving every also. So the second moving averages Yeah, leant has changed to 13 Andi sources and start off high official jewels low here on officer The three left you in the color also and take notice you're done with the chart settings Andi just although that their two moving averages are almost parallel to each other and then our inter Fechter any point of mine so you can see it's not what intersecting So now let's understand the crest. And perhaps also these are the crest. The back days did not the crest. These are all suppressed. So do you are also these are the troughs, the lower cause the they're also dealer also trust No, I understand another concept off the swing hires and swing lows. So, as you can see, this is ah, sing low as this is the point where the Lodin moved the up ran. This is also a swing low and this is, ah sharing higher. Similarly, this is also a soon high. Similarly, this is also swing law. This is a swing higher. I hope you are clear with the concept of swing highs and singles and questioners. So let's move forward. As you know that the chart in which we have to follow this does it the chart pattern which we I need to search on. This is the most common chart pattern which we find on any chart. So let's see where we're getting this pattern in this Bitcoin shark. So as you can see that here, we're getting our pattern but noted that crest and trust are both pointed. Pride will award these Perkins, So I work these kind of point. It goes here also, you are getting the required pattern so you can go to with this trailer. They're also you're getting the pattern. But again, the same girl that it's appointed rough so we can work this trade. But still, that the aggressive investors may proceed with destroyed. There also were getting department. There also were remarkable pattern. In fact, here we're getting cool apartments certain Mefford on this one Also, this one also is over pattern. This is all those short part and we're getting for in fact, for aggressive investors, as we have Ah one good Brooke. This is also what over pattern? In fact Cooper concerned with it Div does it also it'll here also you can see the pattern. Sorry. Here also for regular seven ministers, this is also our pattern. It also you can see the pattern.
19. BONUS Pred MA Trading( Practical): I hope by now you are clear with the basic start setting the press, the troughs and swing highs and singles and hope you are clear with the the pattern also which we need toe recognize on our charts. So now we're continuing with the previous example of Bitcoin You can see from January 1 to commentating till May 2018. Let's see how many training opportunities regard on this big one shark one do 34 56 seven It no doubt 11 dro 13 So we're getting around 13 opportunities from from generally put point it in tow metal country T. So, in fact, this is a very good strategy for swing traders and the people who are did off and are interested in investing or trading in stock markets as we are using one hour charge and you don't need to follow the chart minuto minute. Let's move forward and start with the back testing off the strategy. We will test each and every training opportunity, which we got. So let's talk in this back testing. I'm trying to be a conservative investor and will only invest if, uh, if I get a clear sing. I and a clear swing low, plus a clear crest and clear truck. So I will only trade up clear proof their first clear soon and clears when high. So I won't clear that the pointed crest and pointed cross which I showed you in the back testing or the chart pattern identification for that stock here also, I wanted it as its appointed crest on here. Also, I won't read what aggressive investors may pursued with the stairs. There also were getting appointed crest. So here I am getting a clear crest Whole story here I am getting a clear question, period. I will proceed with the trade and show you how to prayer. So I'm talking about this this park. So here I am getting a clear crest and clear trough, but who also big pointed so better I trade at this part. So here we're We're getting a clear crest and clear through Andi. Clear Soon Hiles and players win. Lose. So let's start. So this is our swing low. And from this I will make the tension. So this trough like this you'll exchange the collateral so on. This is a swing higher. Andi, let's make that engine. So yeah, after drying tenure in our first point is that if we're getting confirmation to close it with this trade or not So for confirmation, we have toe see if the top engine is touching before the lower trend line intersects the two moving averages. As you can see, the Lord Trend Line is intersecting at these points, and the ah portrait Land is making tangent at this point. So yes, we're getting the confirmation. But still, we can't proceed with the street because the upper trend line has intersected before the lower trend night. So, in fact, this is, ah, false trade. In fact, this is a false trading opportunity. In fact, we can't proceed with district as the buying whose own we're getting after selling zone. Let's back us other opportunities Next blackness, this one. So here also I'm getting a clear sing high and clear swing low as well as their crest and clear drop. Let's start with those strategy and brother Kenyans. This is our swing glow. From this I will draw their penchant like this on from here and from swing high, I will broader tension toe dressed like this. So these are the points where I will get Ah, my eyes. These are the bang zone and this is Ah, several. So this is the reason where I will most probably get a swing low, which you can see I'm getting at this point And this is a reason where I will most probably get a swing high. So as you can see, I'm getting a swing higher between this region. No, I work. Next point is that if you're getting information to proceed with the straight or not, let's check if you're getting the information. So the crop trendline touches at this point. But the Lord trendline makes the intersection with moving averages before the upper trend line touches the moving averages does. We're getting conformation after the Lord trendline enters the moving averages does we can't force it with the street so we can't so destroyed. Also, you can't bullshit Lex test this one. As you can see that this is also appointed crest and being conservative investor, we have toe award this fair. Let's just other trading opportunities. This is Ah, very good chart pattern. We're getting her. Let's test this one. We're getting a clear swing low here soon high, clear crest and very clear. So that stock from here we will draw the attention you're And from here we're drawing Glasson higher. Were the Drover tenured like this? So no. Whether we're getting on room within a lot, sir, the upper trend line makes the engine before the lower tenure before the Lord and line. And there's the moving average. So, yes, we're getting conformation at this point that we can proceed with the street. Yes, we called the conformation. No, let's start. I'm assuming in disorder, I reckon you can understand. Better does. This is the bison, and this is the cell. Now let's understand the mind contract Here, the Lord and line are this candle and does the moving averages now? Asked what I was Strategy. We have to buy the very first candle, ask for the strategy you have to buy at the scandal. So as soon as this kind of stocks forming, we have to buy at this point also, as we learned in in theory class, not whatever amount you want to invest divided into four parts that yes, we have weevil at practice. You have to buy four lakhs in our buying zone on. Similarly, in selling on awful, we have toe cell. And similarly, that is whatever large we bought in the buying goon we have to do. I didn't do four parts and we have to serve one lot at one time. It does. We buyer this candle, and as you can see, this candle makes a low off this. Now the door are and then nova drawer, turn line like this. So when the next candle start forming, we have to buy at around this price As soon as the second kind of dips or crosses below this trend line, we have to make about off. Second Law does do scandal mix. Hello, Lord. In this. So we have to so we can buy the second lot at this candle at this price here and now. Maker trendline. And now Lucas, He at here This and yet trendline leaves the moving averages and does our bind zone is over here. So we only got two trading opportunities cooperating opportunity than Bison Onda average Lexie what was the average price and we walked out around so this can do so as well. Not this kind of start forming with mark back on a 40 year then second lot he bought after on EC 149 So the average we got a 30 miles. So we born at around 309 Now we are done with buying, and now we will wait for the moving averages toe intersect the unfortunately so as soon as the trend line and tells the moving averages, this is the first kind of which we got in the cell phone. So as part of a strategy you won't sell are the very first candle. He won't sell here, and we will wait for the next candle across the upper price off this candle. So let's make it friendly. No, this is the last country to speak work, and you can see that he, as you can see, the price never crossed above the top of the the top price off the first candle. Does we never got any hair? We're getting the selling opportunities. Last kind of and does on this scandal will sell one law, my daughter next, Kendall. The upper trend line crosses, makes a crossover and exits the moving average. Does we get only one selling opportunity in our cell phone. No, that's part of the strategy. We have to sell all the lords at the very next candle after the opportune line exits. The moving averages does act this candle whenever this scandal starts for me. Just so we will sell at around this point all the remaining lots. Let's see the average price of the average this week. Average price wouldn't be around there. 3 to 4 does. You can see that this is, ah, minor, profitable trade. Hope you're clear with the practical implementation of the strategy. Let's see another example Lexi. This training opportunity also there also were getting a clear swing high and clear, swing low as well as clear profit here. Crest who? Let's start with the engine. This is over swing high and this is the work rest full maker engine watching this crest collectors. So yeah, so let's check where whether we're getting the confirmation to proceed with the straight on our as you can see that this a porter online is making tension before the lower trend line and turtle moving averages does. We called the trading signals that we can proceed with the street that is, we can start making our buy in the bangle for the answer to this conformation is yes, me guard the opportunity. Don't proceed with the street. Let me clear this also. And you move it for that with and understand the buying and selling strategy in detail. So this is so as you can see the buying and selling a Dios in detail. No, this is the very first candle you regard at the point of intersection. And we will buy at this candle It made our progenitor this candle at whatever price start its stock. Pullman on. This is the low this candle make and we will make a trunk liner this candle and in next can whenever the next can do crosses this briers little Nicobar As you can see the next candle Didn't that's the law off this scandal off the close, Campbell? No! So we won't buy. We didn't guard a buying opportunity or second candle, but the third candle crossed this price. Andi, hence we make up a cheese metal buyer this candle at this price as soon as this cross below the previous law. You know, this kind of makes a new law and we will make a trend line like this. Whenever the next general crosses below this candle, we will make a buyer. No, the next. Scandalous, This one and this. Still, they're also the cannon. Didn't cross. Make a cross over with the moving and it's It's still the Bible and the you'll make a buyer . This price also this year, does now at this candle it makes the moving the trend. I leave the moving and really an hour bizonal, so we got three turning opportunities. Three. Buying opportunities in the in our bison 31 over the other than average price waas the board at around this we water I despise a 137 They don't get one a 29 if we water it around 801 to 9 and this we border are owned. 794 Tzeitel And this we bought seven. It'll vehicle so that averages. So we are taking approximately. It's ever get around $8. You wore that on your Children. It's approximately approximately. I was buying Onda. Now hour by noon is over, and now we will focus on selling room. And whenever the moving averages move towards this trend line, we sort start falling this talk more cautiously. And whenever this trend line enters the moving average, we will ask for our strategy. We won't buyer. The very first country does. We won't buy it this candle, but we nor the upper price with this scandal mix does he make a trending like this. And whenever next candle crosses this price, we will make our coaches. So second candle, in fact, cross mix ah which is described. So we will make up a cheater second gun dealer on the price around this and make a trend line. Whenever the next Kendall crosses this price, we will make over perch it off the second law. But unfortunately, the selling going over at around this point on the only work one selling opportunity, saving opportunity and Sally go and asked what was started. He who We will sell all the lords, all the three remaining lots at the very next candle to the I think this is next kind of this hurts. Leaving the movie government is the trend line is leaving the moving average so we will make all the selling and this Kendall whenever the scandal opens. So this candle is opening at around this Whoever salad around it. Five, 854 There this be sold at home. It's on five trees or it's a little average will be wrong. 8173 does This is Ah, get profitable trade in which, as you can see, this is a good profitable cleared. Hopefully now were clear. With the implementation of the strategy, you can try the strategy and backed us this strategy on your own on always try toe, implement any strategy only after back testing and some people trading.
Gaurav Khullar, Professional Banker(10 Years Experience)
