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200 Day Moving Average Explained to Identify Bullish or Bearish Market - YouTube
Channel: Indrajit Mukherjee
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So hello my dear friends.
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If I tell you
which stock is bullish
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and good to buy and if I tell you which
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stock is bearish
and good to short sell how is that
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?
Because I know that you are buying a
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bearish stock.
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And ultimately you are losing money.
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And
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you may be shorting
a very bullish stock and you are once
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again losing money.
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But in this video I am going to show you
how you can identify
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whether a stock is bullish or it is
bearish
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just by using a single indicator.
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And
that indicator
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is a moving average.
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It is 200-day moving
average.
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So using this 200-day moving average you
can identify whether a stock is bullish or
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bearish and you can do it within just
one minute of your time.
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So I'll also show you how you can use a scan,
how you can create a scan from a free site
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.
So you can identify which stock is
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bullish or bearish and you can also
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create your own scan and you can scan
for all the bullish or bearish stocks.
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So you can create your own trading
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strategy after you found
a stock is bullish or bearish.
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So let me
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show you how you can identify
and use this 200-day moving average
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successfully.
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But before that let me give you a short
intro of mine
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. Hello friends i am Indrajeet Mukherjee
from stockmaniacs.net
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.
If you want to grow your wealth from the
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stock and commodity markets hit the subscribe
button and hit the
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bell notification icon.
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You can also send me your stock market
related queries
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through whatsapp in my number +9
19674321856.
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So
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friends
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the logic is simple.
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Once
a stock crosses the 200-day moving
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average, it is bullish.
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The more
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it is away or above the 200-day moving average,
the more it is bullish.
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And similarly once a stock crosses down
a 200-day moving average, it is bearish.
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The more it is below the 200-day moving average,
the more it is bearish
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.
So i will show you how you can identify
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a bullish or bearish stocks and how you
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can trade them also.
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So it is not like that that once a stock
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crosses the 200-day moving average and
simply you jump and buy it.
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Or a stock crosses down a 200 day
moving average
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simply you jump and short it.
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So there
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will be some patterns.
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And in this video I am going to show you
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these patterns, how to identify these
patterns.
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So let us go to a trading terminal.
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And
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show you
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the 200-day moving average, how to use it.
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So friends we are in zerodha kite
.
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So we will use zerodha kite as our
charting platform here.
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So I believe that you are already having
zerodha kite.
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If you do not have zerodha kite,
I'll leave you the link to get zerodha
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kite in the video description.
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So this is nifty 50 one day chart.
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You
can see this is one d
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means one day's chart.
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So nifty 50 one
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day chart
and here we will attach a moving average
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. So let us go to the studies section
And let us go to the moving average
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.
So you can see here is the moving
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average
. So by default the moving average period
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is 50.
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Instead of 50 we will take 200.
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The field is close.
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So we will use the
200
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day moving average on the close price
. And
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the type is simple.
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Let us keep a simple
200-day moving average.
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So you can choose the color and click on
done
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. So you can see this is the red line.
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And
this is the 200-day moving average.
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And the thumb rule is whenever a stock
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or the indices
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are trading above the 200-day moving
average, so
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it is bullish.
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And when it is actually
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trading below the 200 day moving
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average, so it is bearish
. So this is basically the thumb rule.
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And
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the more above the stock or the index is
trading above the 200 day moving average
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it is more bullish.
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And the more below it
is trading from the 200-day moving
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average
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it is more bearish.
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So you can see the
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current market scenario nifty 50
is actually bearish.
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Why 50 50 is bearish
? Because nifty 50 is trading below the
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200-day moving average
. We can see this date.
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On this date 26th
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of february 2020, nifty has
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actually breached the 200 day moving
average.
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And from there
it is now trading below the 200-day
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moving average.
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So at a glance we can see and we can
tell that the nifty 50 is bearish.
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Let us
check some other example.
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Let us take the example of bank nifty.
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So the bank nifty chart has opened.
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You
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can see once again
bank nifty is also bearish.
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Because bank
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nifty is trading below the 200-day
moving average.
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So you can identify that 200-day moving
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average
is one indication which direction the
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stock
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or the index can move.
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So there are times
when the stock or the index
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crosses the 200-day moving average.
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And
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it can show you a big rally.
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And there are times when the stock or
the index
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crosses the moving average.
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And then once
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again comes
on the other side.
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So just crossing the
200-day moving average
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is not a trading direction.
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Suppose here
bank nifty has crossed below the 200-day
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moving average.
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And next day also it has closed below the
200-day moving average.
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But it came above the 200-day moving
average once again.
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Here also bank nifty could not sustain
below the 200-day moving average.
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So right now also bank nifty is trading
below that 200-day moving average.
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So now how we can speculate the move of
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bank nifty.
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So there are various rules.
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So before
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that let me show you how you can make a
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scan.
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How you can find out which stock is
bullish or which stock is bearish.
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So let us go to a site called, chartink.
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So this is the site chartink.com.
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Here is a screener.
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So i'll give you the
link of the screener in the video
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description.
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So from here you can find out which
stock is actually trading above or below
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the 200 day moving average
. So this is actually an end of day scan.
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You make sure you scan
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after 4 pm every day or before 9
a.m every day.
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Because do not scan on the
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intraday.
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So here you can see, here is a
simple formula that has been written on
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the chartink website.
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So you can see the latest close is
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greater than
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sma means simple moving average, 200
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period simple moving average.
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And we can scan from the nifty 50
segment.
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So you can change your segment also.
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I'll
currently scan on the nifty 50 segment.
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So you can click on run scan.
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So you can see these stocks are .actually
coming in the scan
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So dr reddy's laboratories, hcl
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technologies, britannia industries.
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These all are actually bullish stocks because
they are
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actually trading above the 200-day
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moving average.
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So let us check one example.
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Suppose
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dr reddy's laboratories,
so instead of bank nifty, let us write
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doctor reddy.
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You can see the dr reddy's
laboratories chart has opened.
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So you can see way back dr reddy's
laboratories has crossed the 200-day
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moving average on 15th of october 2019.
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You can see the
date over here.
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So after that it has shown a decent
rally.
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So now it is correcting but still it is
bullish because it is trading above the
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200 day moving average.
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Now suppose there is another stock, say
hcl technologies
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.
Let us check how hcl technologies is
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doing.
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So let us open the chart of hcl
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technologies.
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You can see this is not that bullish
. Previously it was quite bullish because
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it is trading way above the 200-day
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moving average.
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But now it has tried to bridge the
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200-day moving average.
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And once again it is trying to come up
above the 200-day moving average.
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But
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it is very close to 200 day moving
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average.
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So let us
avoid this stock as of now.
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I will show
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you the trading strategies later.
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Now let us see how you can find out
which stocks are bearish.
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So just go to this scan.
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So instead of
greater than
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simple, simple write less than
. Click.
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So now your scan has changed
. Let us close less than the 200-day
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moving average.
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So run scan.
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You can see these all stocks
has come.
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So vedanta limited, z entertainment.
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Suppose
let us check tata steel.
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So here let us write tata steel.
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See tata steel is a bearish stock.
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Because
tata steel is trading way below the 200-day
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moving
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average.
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Suppose let us check another stock say
coal india limited
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. So Let us write coal india.
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You can see
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how much bearish coal india is.
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It has
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crossed the 200-day moving average on
the month of july
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. And after that it has never came above
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the 200-day moving average.
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So it is continuously going bearish.
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So
you can
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understand how 200-day moving average
can predict whether a stock is bullish
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or it is bearish.
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Now let us find some
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trading ideas.
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How you can trade using the 200 day
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moving average.
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So let us change the candlestick type.
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Suppose instead of normal candles we are currently
using normal candles,
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let us use heikin ashi
.
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So you can see this is now heikin ashi chart.
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So how we will trade the 200-day moving
average using the heikin ashi.
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So one option is there.
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Let the stock
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cross the 200-day moving average.
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Currently you can see this coal india
stock has crossed the 200-day moving
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average.
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And the heikin ashi is printing the red
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bars.
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Now let the bar colors change to
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green.
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So this is the pull back actually.
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We
know the stock is
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bearish because it is trading below the
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200 day moving average.
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Now we will wait for a pull back.
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So
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this stock has pulled back.
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Now once
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again we will look for a bearish
candlestick.
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Bearish heikin ashi.
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Bearish
Heikin ashi means
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.160
you can see where the
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open equal to high.
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In this candle you
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can see
the open equal to high.
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In heikin ashi the
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open equal to high.
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So this is a bearish
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setup
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currently.
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So now you can enter a short.
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And you can see after that
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you have got a decent fall.
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So you can
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try this
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only once after the stock crosses the
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200-day moving average.
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So let the stock first run its own
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journey
then let it pull back.
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And then enter
using a heikin ashi pattern.
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Let us come
back to the index
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. Suppose bank nifty you can see bank
nifty has crossed
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above the 200-day moving average here on
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18th of october 2019.
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So after that we
got a pullback.
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Because we saw a red heikin ashi bar.
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Once again we got a bullish setup in heikin
ashi.
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Because we got a
open equal to low candle.
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So this is your
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buy candle.
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So after that you can see you have got a
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decent rally.
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So this is your first trade.
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So as this
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first trade is profitable do not take the
second trade.
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But you can see once again there is a
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bearish heikin ashi pattern.
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Then once again you have got a buy entry.
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Once again this was profitable trade.
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But we are actually going to trade only
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one trade.
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So this is how you can trade the 200 day
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moving average
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using heikin ashi candles.
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And friends if
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you want to know more about 200 day
moving average and how to trade it
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. I have written a blog post specially for
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you.
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So this is the blog post.
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The link of the
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blog post will be given in the video description.
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So you can come down to this blog post.
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And you can find out more on how to use
this 200-day moving average
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.
And I have given you one more trading
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strategy in the blog post only
. So friends please check the video
[794]
description where I'll be
giving you the blog post link.
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So friends
I have shown you how you can identify
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whether a stock is bullish or bearish
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using this 200-day moving average
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very easily.
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And I have also shown you
how you can create a scan
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using the 200-day moving average using a
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free site.
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And you can scan for stocks who are
bullish
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or who are bearish.
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And I have also shown
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you how you can
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enter trades using the 200-day moving
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average
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and the heikin ashi candles.
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So there are
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other methods of trading
that 200 day moving average.
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So in my
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next videos I will try to cover them
.
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And in my next video I am going to show
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you how you can use the 200 moving
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average
in intraday also.
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So that video will be
especially helpful for the intraday
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traders.
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And this time I am going to cover the commodity
market.
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So I'll show you how you can trade crude
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oil
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very easily using the 200 moving average
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and the combination of super trend
.
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So you need to wait for my next video
and next video is going to be a premiere.
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Next video will be live on 5 30 p.m on
next friday.
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And I will be there with you.
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So you can
ask your questions to me.
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So friends I have completed today's
[872]
webinar.
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If you like today's video please do not
forget to hit the like button
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.
Please also do not forget to share it
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with your friends.
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Because if you share it someone else can
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also be benefited
. If you have any queries just ask me in
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the comments.
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I'll try to answer you as early as
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possible.
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Friends
thanks a lot for watching this webinar till
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the end bye bye.
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