Technical analysis (TA) + Exponential Moving Average (EMA)
Six months past since I started trading, I find that the year 2021 quite volatile for the stock market that runs in all directions. I found Technical analysis (TA) & Exponential Moving Average (EMA) useful in determining buy and sell points for me.
What exactly are TA & EMA? As defined by www.investopedia.com, TA is a trading discipline employed to evaluate investments and identify trading opportunities by analyzing statistical trends gathered from trading activity, such as price movement and volume. EMA is a type of moving average (MA) that places a greater weight and significance on the most recent data points.
For TA, I always have the Support and Resistance levels drawn up for stocks that I intend to invest after some due diligence.
- Support would be my entry point.
- Resistance would be my profit taking point.
In addition to that, I found that it’s important to look at EMA, more important ones are EMA50 and EMA200 to determine if the stock is upward (golden cross) or downward (deathcross) trends. I like to keep it simple as I’m newbie so I’ll just have 2 TA lines and 2 EMA lines but stock is more complex than this.
Buy
I started to learn EMA because of $Teladoc Health(TDOC.US$ as it keeps going down![]()
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. I realised that its because it’s at downward trend - DEATHCROSS (short term EMA50 is trading below long term EMA200). It’s unrealised loss now so let it be since I’m investor.
What exactly are TA & EMA? As defined by www.investopedia.com, TA is a trading discipline employed to evaluate investments and identify trading opportunities by analyzing statistical trends gathered from trading activity, such as price movement and volume. EMA is a type of moving average (MA) that places a greater weight and significance on the most recent data points.
For TA, I always have the Support and Resistance levels drawn up for stocks that I intend to invest after some due diligence.
- Support would be my entry point.
- Resistance would be my profit taking point.
In addition to that, I found that it’s important to look at EMA, more important ones are EMA50 and EMA200 to determine if the stock is upward (golden cross) or downward (deathcross) trends. I like to keep it simple as I’m newbie so I’ll just have 2 TA lines and 2 EMA lines but stock is more complex than this.
Buy
I started to learn EMA because of $Teladoc Health(TDOC.US$ as it keeps going down
This incident helps in my future buys. I bought $FireEye Inc(FEYE.US$ at support level. I’m aware that prices may fall since it’s at deathcross but I’m prep for this so less stressful. I’m confident from earnings and insider buys.
Sell
I sold my $Tesla(TSLA.US$ recently as iy hit my resistance level. Though its at goldencross (upwards trend) but you cannot be greedy and always take candies when presented.
I hope this helps.
Would loved to learn from other traders too.
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chickenrun : Where does one even start to learn all these technical skills?
Txfen80OP chickenrun: You can start with this video that I found on YouTube https://youtu.be/eynxyoKgpng and practice in moomoo. With practice, you will beginning to grasp it.