Introduction

• The strategy we will be implementing today is 200 Days Simple moving average breakout
• The 200-day moving average appears as a line on the chart and represents the average price over the last 200 days or 40 weeks
• Moving averages give the trader a sense of whether the trend is going up or down while also identifying potential areas of support or resistance
• A simple moving average is an average of prices over time, while an exponential moving average (EMA) gives more weight to the most recent data

SMA 200 Days Positive Crossover

• SMA 200 Positive crossover is a bullish cross
• Covering approximately 40 weeks of trading, the 200-day SMA is commonly used in equity trading to determine overall market trends
• Let’s look at an example in the chart below  ( on Marico a daily time frame)

A stock is generally considered to be in an uptrend if it remains above the 200-day SMA on the daily timeframe. let’s look at a few opportunities in the LIVE market

SMA 200 Days Negative Crossover

• SMA 200 Negative crossover is a bearish cross
• A stock is generally considered to be in a downtrend if it remains below the 200-day SMA on the daily timeframe
• Let’s look at an example in the chart below  (Dr.Reddy on a daily time frame)

A stock is generally considered to be in a Downtrend if it remains below the 200-day SMA on the daily timeframe. let’s look at a few opportunities in the LIVE market

Awesome, but what’s my takeaway?

•  lTIM, Marico, GODREJCP, HEROMOTOCO & LICHSGFIN have given a buy call on a daily time frame (implementing SMA 200 Days Positive crossover )
• ADANITRANS, BAJAJ-AUTO, Dr.Reddy, Dixon & Colpal  have given a sell call on a daily time frame (implementing SMA 200 Days Negative Crossover)