Introduction

• The strategy we will be implementing today is 50 Days Simple moving average breakout
• The 50-day moving average appears as a line on the chart and represents the average price over the last 50 days or 10 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 50 Days Positive Crossover

• SMA 50 Positive crossover is a bullish cross
• Covering approximately 10 weeks of trading, the 50-day SMA is commonly used in equity trading to determine overall market trends.
• Let’s look at an example in the chart below  ( on Hindalco a daily time frame)

A stock is generally considered to be in an uptrend if it remains above the 50-day SMA on the daily timeframe. let’s look at a few opportunities in the LIVE market

SMA 50 Days Negative Crossover

• SMA 50 Negative crossover is a bearish cross
• A stock is generally considered to be in a downtrend if it remains below the 50-day SMA on the daily timeframe.
• Let’s look at an example in the chart below (on  Shree cement a daily time frame)

A stock is generally considered to be in a Downtrend if it remains below the 50-day SMA on the daily timeframe. let’s look at a few opportunities in the LIVE market

Awesome, but what’s my takeaway?

• M&M, HINDALCO, JSWSTEEL, HINDUNILVR, & SBILIFE have given a buy call on a daily time frame (implementing SMA 50 Days Positive crossover )
• ULTRACEMCO, SHREECEM, HDFC, TITAN & GRASIM have given a sell call on a daily time frame (implementing SMA 50 Days Negative Crossover)