Nifty 50 vs 50-day moving average in 2018. (Source: Bloomberg)

Traders Carnival: What Moving Averages Tell You About Prices

NS Fidai calls himself a trainer rather than a trader who is okay with missing good buys. In a session at the Traders Carnival, he explains how to scan charts using moving averages.

If the trend suggests that moving averages either act as a support or resistance, that is where you look at having a trade, Fidai told the participants. The 50-, 100- or 200-day moving averages indicate support when a price doesn’t fall below that level and point to resistance if doesn’t rise above it.

“You can identify a short trend if the number (moving average) is smaller,” Fidai said. “The longer number will be able to tell you about the trend in the longer term.”

Traders Carnival: NS Fidai On How To Scan Charts Fast Using Moving Averages

NS Fidai on how to scan charts fast using moving averages at Traders Carnival. #BQLive

Posted by BloombergQuint on Friday, May 25, 2018
BloombergQuint
Stay Updated With Traders Carnival 2018 News On BloombergQuint