HOW TO STUDY AND FORECAST STOCK MARKET ?
DMAs, BEST INDICATOR IN FORCASTING STOCK MARKET MOVEMENTS
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.
EQUATION FOR FORCASTING STOCK MARKET MOVEMENTS
Based on our experience below equation is formed just to bring the things closer for prediction.
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