Introduction

• The strategy we will be implementing today is wilders moving average (WMA)
• This indicator is also known as Wilder’s Smoothed Moving Average and is similar to the Exponential Moving Average
• The Wilders Moving Average(WMA) indicator generates buy and sells signals based on trend changes
• A buy or sell signal is triggered when the two averages cross

Wilders Moving average (WMA) Positive Crossover

• Wilders moving average Positive crossover is a bullish crossover
• A Buy call is triggered in such a setup when a shorter time period average cuts the larger time period average from below
• Let’s look at an example in the chart below (Petronet on a daily time frame)
• The short-term average (26-WMA) intersects the long-term average (52-WMA) from below the Bullish crossover

• Now that you know what a wilders moving average positive crossover is, let’s look at a few opportunities in the LIVE market

Wilders Moving average (WMA) Negative Crossover

• Wilders moving average Negative cross is a bearish crossover
• A sell call is triggered in such a setup: When the higher time period average  crosses the lower time period average  from above
•  Let’s look at an example in the chart below (Adani transmission ltd  on a daily time frame)
• long-term average (52 WMA) intersects the lower time period average  (26 WMA) from above Bearish crossover

• Now that you know what a wilders moving average Negative crossover is, let’s look at a few opportunities in the LIVE market

Awesome, but what’s my takeaway?

• UPL, BPCL, ONGC, HDFCLIFE & HINDALCO  have given a buy call on a daily time frame (implementing wilder moving average Positive cross)
• DRREDDY, TITAN, RELIANCE, ADANIPORTS & TATACONSUM have given a sell call on a daily time frame (implementing wilders moving average  Negative Cross)