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.”