The traders now a days are taking the support of technical advisory companies, through which trading can be effectively done. These technical advisory companies provide tips and tricks in the form of Stock Futures Tips as well as Stock Option Tips and Option Trading Tips. TradeNexa is an example of a reputed advisory firm.
Each advisory company, has a team of expert technical advisors. These technical advisors provide advice to trade, on the basis of their in-depth technical and fundamental analysis. They give their technical advice in all the segments like option segment, future segment, and cash segment.
Graphs of Technical Analysis are generally drawn between price movement and time. The time frame can be chosen according to the convenience and the price unit is taken in INR. Along with the price charts, various indicators like moving averages, MACD and RSI etc can also be used. These technical indicators are based on different mathematical formulations and on various studies.
To identify the current trend, whether it will be uptrend, downtrend or flat trend, the moving average indicator can be used. The market thus can be bearish, bullish or range bound.
Simple moving average(SMA) and exponential moving average(EMA) are two different types of moving averages. If you have to determine the average of n periods, you can use the simple moving average. Whereas, in the case of exponential moving average, the exponentially increasing factor is also multiplied by the moving average. The response time of EMA is faster than SMA. The SMA and EMA of period 5,10,20 etc are used for Intraday trading, depending on the time frame, one has chosen. The moving average crossover strategy is a predominant strategy, which is used by many analysts. Up to some extent, it's a trend following strategy. With the help of this strategy, price movements can be anticipated. One of the moving averages is a slow one and one is a fast one.
The crossover of two moving averages can be used to see the trend changes. The buy trend can be executed only when the trend is changing from a down trend to an up trend and with the help of it, suitable trades can be executed. Similarly, the "sell" trades can be executed only when the trend has changed from an uptrend to a down trend.
Thus, with the help of moving averages, one can easily execute the trend following strategies. Both simple moving average and exponential moving average can be utilized for this purpose. The results of exponential moving average are finer than results of simple moving average. The technical analyst renders tips and tricks in the form of Stock Option Tips and Option Trading Tips which can be obliging for a successful venture.