Skip to content

HOW TO STUDY AND FORECAST STOCK MARKET ?

DMAs, BEST INDICATOR IN FORCASTING STOCK MARKET MOVEMENTS

How to Study and Forecast Stock Market ?
How to Study and Forecast Stock Market ?
Daily Moving Average (DMAs) play significant role in prediction of stock market movements. Also DMAs are only the parameter, which can be easily read and detected on chart and through historical data. One can also plot the figure of DMAs on the chart or the same can also be plotted through the option technical indicators by selecting “Moving Average” and changing the figures in the console.

In below historical data, DMAs levels in absolute figures are shown. It is assumed that, short term trend of stock market shall continue, if, market maintains 05,10,20 and 50 DMAs. In this condition, experts, suggest, Buy on Dips strategy, as every time when market shorts and comes to the near of these short term DMAs, unless these supports are broken, shall recover sharply.

Similarly, if market after firm trading for few days, weeks and months, comes near to these short terms DMAs levels and try to breach the same and starts moving below these short term DMAs, it is assumed that, there is weakness in the market and if these levels are broken, may take market to lowest levels, say, if 5 DMA is broken, next level of 10 DMA is to be watched and 20 and 50, in this way, the market will try to find support of next DMA levels, if, broken, will take to next DMA levels, no matter what is the difference between that DMAs is. 

However, if other parameters are corelated like previous high, low or PCR, key events, GEO Political situation across the globe, may deliver accurate prediction. 

NIFTY 50 - 45 days detailed trading details with significant parameters
NIFTY 50 – 45 days detailed trading details with significant parameters

EQUATION FOR FORCASTING STOCK MARKET MOVEMENTS

Stock Market Prediction is a tough job, but very interesting. Single parameter does not work in forecasting stock market movements, but a set of technical parameters, if, considered, may reveal nearly accurate result. As our whole strategy to deal in stock market is based on price movements, therefore, it becomes mandatory for us to learn the way of prediction of stock market, so as to avoid losses and to earn maximum profit.

Based on our experience below equation is formed just to bring the things closer for prediction.  

 

 

 

 

 

 

 

 

 

 

 


Discover more from MARKET BARRISTER

Subscribe to get the latest posts sent to your email.

Discover more from MARKET BARRISTER

Subscribe now to keep reading and get access to the full archive.

Continue reading

stock fall 15% in 30 Days SHAHRUKH KHAN BIRTHDAY MANMOHAN SINGH