1. As a stock trader one will be benefitted watching 200 day moving average (DMA) as it works maximum number of times and is a great tool for all those trading in Nifty futures. One can say that Nifty is in bullish mode once it crosses above the 200 DMA and is in bearish mode if trades below 200 DMA.One will be better of keeping a watch on this line of 200 DMA as it gives best results when a cross over occurs i.e. Nifty moves up or below 200 DMA are the most likely points to enter in a trade.
2. Since it is a trend following indicator and thus to be on the right side of the market one shoud not try fighting the trend and make money by swimming along the trend. This tool is awfully important for all those trading Nifty futures in near term and thus one can take the decision to buy or sell Nifty futures based on this information.
Advice: Do amalgamate other indicators to authenticate and corroborate the information.
Caution: This system fails in a volatile market.
200 DMA line is continous drawn line which is criss crossing the candle sticks of Nifty.
2. Since it is a trend following indicator and thus to be on the right side of the market one shoud not try fighting the trend and make money by swimming along the trend. This tool is awfully important for all those trading Nifty futures in near term and thus one can take the decision to buy or sell Nifty futures based on this information.
Advice: Do amalgamate other indicators to authenticate and corroborate the information.
Caution: This system fails in a volatile market.
