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Using moving average if the market is bullish and the price of the stock is also bullish say at around 10 am after 45 minutes of market open see if the MA is bullish trending then go for buy for e.g. if SBIN is 283 and check for volumes and trend, give a buy at 283 and sell at the risk one wishes to take, a small formula to have least risk buy price x 0.3/100 i.e if buy price is 283 x 0.3/100=0.85 Rs per share is the profit to book. Stop loss should be 0.85 or risk one is willing to take. This is a suggestion for intraday only please.
Moving average works well in the trending period, when the price moves above the moving average we can go for long as it crosses the resistance, and when the price go below moving average, we can short and expect the price to go further down.
Moving average is a technical indicator, that is used to determine the direction of a trend. It is a mathematical calculation obtained by averaging a number of previous price points. It works well in Trending areas.
A new curve is plotted using this mathematical calculation. If the actual price point goes above the MA, then it indicates a Bullish trend and hence Long position is created. If the price goes below the MA, then it is a Bearish trend and hence Short position is created.
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