Hello Reader,
Today In this post I'm going to explain you that "Whats the First Sign That Strong rallied Stock Loosing its strength "
There are so many method to check that stock is going to Top-out soon like RSI -Ve Div, Bearish Candlestick pattern, Reversal Chart Pattern Like Bearish H&S,Rising wedge etc.
But Here I'm going to explain you with MOVING AVG.
Every stock when it rallied strong 2X.3X times, it always give respect to one XYZ Moving avg. (Mostly 20/50/100/200). when it correct always take a support of XYZ Moving avg.
Read my This Article 1st for better Understanding of this Post - Importance-of-moving-averages
So Whenever Any stock Broke that XYZ moving avg. that's first sign of weakness in that stock. Thats a indication that stock is loosing its strength.
For ex. Here Im explaining you with KSCL chart.
In below attach chart.. KSCL broken its 50WEma at 54 rs in 2010 and continuously gave support till June 2015. Almost 5 year. and stock went 50 to 1100++ :D
In June 2015 stock Broken its 50WEma first time at 800rs.
Now today stock is almost a half in a 6 month. 369 was yesterday low.
Article Written by me.. Very useful for beginner :
Today In this post I'm going to explain you that "Whats the First Sign That Strong rallied Stock Loosing its strength "
There are so many method to check that stock is going to Top-out soon like RSI -Ve Div, Bearish Candlestick pattern, Reversal Chart Pattern Like Bearish H&S,Rising wedge etc.
But Here I'm going to explain you with MOVING AVG.
Every stock when it rallied strong 2X.3X times, it always give respect to one XYZ Moving avg. (Mostly 20/50/100/200). when it correct always take a support of XYZ Moving avg.
Read my This Article 1st for better Understanding of this Post - Importance-of-moving-averages
So Whenever Any stock Broke that XYZ moving avg. that's first sign of weakness in that stock. Thats a indication that stock is loosing its strength.
For ex. Here Im explaining you with KSCL chart.
In below attach chart.. KSCL broken its 50WEma at 54 rs in 2010 and continuously gave support till June 2015. Almost 5 year. and stock went 50 to 1100++ :D
In June 2015 stock Broken its 50WEma first time at 800rs.
Now today stock is almost a half in a 6 month. 369 was yesterday low.
Note:I'm Not saying that if you know about moving avgs you'll become an Analyst . No and Never, Its Just a Tool or part of Technical analysis.
Article Written by me.. Very useful for beginner :
1.My Ten Pieces of Advice For Every Traders
2.Why Every Trader/Investor Should Trust On Technical Analysis
3.WHY RIGHT EXIT IS SO IMPORTANT IN INVESTING LIFE- StockMarket-RSP
4.IMPORTANCE OF MOVING AVERAGES IN TRADING/INVESTING LIFE
5.What is The First Indication That Stock is going to Bottom-out Soon ??
6.Importance Of STOP-LOSS in Trading/Investing Life
For Technical Analysis Training Mail :- Stockstudy8@gmail.com
