Friday 13 April 2012

Trending or Trading?
1. The first question that we have to address when we start trading is weather the stock is " trading or trending ? " , we will see how to identify it?

Rules:
2.Trending stock - Raising 50 EMA tell that market is in trending mode.
3. Trading  stock - Flatting 50 EMA tell that market is in trading mode.

so  per this rules you can classify, weather it is trending stock are trading stock.
why 50 EMA? why not 100 EMA? or DMA or SMA? - It worked for me so i am using it and sharing with you.
is this rule 100% right , nothing is 100% sure or right in stock market.

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