The Market Monitor is live.
🤍Happy Navratri
🧠Starting this new year with a step into unknown territory with the only goal of making genuine impact!
I’ll see you in the market monitor :)
Thank you so much!
https://t.co/QQcG9IidCe
#CUPID
How I Made ₹10,48,582 in 2 trades from ONE STOCK | Part 1 | Trade Breakdown
New YT Vid Alert!
Breaking down my first profitable trade of Q1 FY27.
Go watch now!
https://t.co/O66AnP5ba8
The Market Monitor is live.
🤍Happy Navratri
🧠Starting this new year with a step into unknown territory with the only goal of making genuine impact!
I’ll see you in the market monitor :)
Thank you so much!
https://t.co/QQcG9IidCe
EMA or SMA?
One of them reacts faster.
The other filters out more noise.
Here's how to know which one to use.
What are they?
- SMA (Simple Moving Average) gives equal weight to every closing price over a set period.
- EMA (Exponential Moving Average) gives more weight to recent prices, making it react faster to new price movements.
How to use them:
EMA → Better for short-term trading and momentum.
SMA → Better for identifying the broader trend and key support/resistance.
- Many traders use 10 & 20 EMA for short-term pullbacks.
- 50 & 200 SMA are commonly used to identify the intermediate and long-term trend.
Why they work:
- EMAs respond quickly to changing prices.
- SMAs provide smoother trend signals with fewer false moves.
- Together, they help you understand both short-term momentum and the bigger picture.
Bonus tip:
Neither is "better." Use the one that matches your strategy.
- Momentum traders often prefer EMAs, while position and trend-following traders often rely on SMAs.
- The key is to stay consistent rather than constantly switching between them.
An observation that I find common across all platforms since I actively post on Youtube, Instagram, and X.
Posts with a financial result often outperform significantly - even if there is no learning to it.
Posts with genuine learning concepts - tend to underperform.
This right here outlines everything you need to know about humans. We want end results without the journey. And that is just not possible.
Ambition and dedication need to work hand in hand. Cannot be ambitious without actually putting in the work!
And ofc this applies to me as well - as a consumer of content I don't realise how often I compare and click on vanity content rather than learning.
Getting better day by day!
Just my thoughts
The trend is your friend... but how do you actually find the trend?
Moving Averages.
Here is all you need to know about Moving Averages:
What are they?
A Moving Average (MA) is a line that shows the average price of a stock over a specific period.
It smooths out day-to-day price fluctuations, making the overall trend easier to see.
Think of it like this:
Imagine you're driving through thick fog. You can't clearly see every twist and turn in the road, but the lane markings keep you moving in the right direction. Moving Averages do the same thing. They help you stay focused on the overall trend instead of getting distracted by short-term price swings.
How to use them:
- 10 MA → Very short-term trend and momentum.
- 20 MA → Short-term trend and commonly used for pullbacks.
- 50 MA → Intermediate trend and institutional support.
- 200 MA → Long-term trend. Stocks above it are generally considered to be in long-term uptrends.
Why they work:
- They help identify the direction of the trend.
- They often act as dynamic support and resistance because so many traders and institutions watch them.
- They keep you trading with the trend instead of against it.
Bonus tip:
You'll often hear traders talk about EMA and SMA. Both are Moving Averages, but they aren't the same.
We'll uncover the differences between EMA vs SMA in the next post.