Traditionally Moving Averages have been the best technical tool used by the intraday traders. And they are not wrong. Moving Averages providing amazing signals that help the traders make a decisive calls.

Intraday players may be using 5-,10-Day Moving averages while positional players use a combination of 50-, 200-Day Moving Averages. However, the biggest flaw here is the Moving Averages tend to change with the time frame.

Here is what I use

I use a combination of MACD and 21-Day Moving Average. I use MACD as it generates Bullish and Bearish Crossover signals while 21-Day Moving Average in a way is a monthly Moving Average (22 trading days). So it really helps me to find major supports if I want to buy a stock.

Here is how I use it.

Example – TCS

TCS.jpg

The above given chart is on a Daily Basis. You can try this on Weekly and Monthly Chart also.

It will give you strong signals.

Hope this helps you.