Teqmo charts or Share market malayalam is a place for me to share stock market and commodity market and technical analysis posts. How to invest in stock market, share market basics for beginners in stock market and commodity market, some technical analysis posts in Malayalam, other investment posts like mutual fund and intraday trading strategies. Share market Malayalam is our youtube channel and its videos are also included in some posts. Views are for study purpose only. Read disclaimer.
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Moving average convergence divergence or MACD
MACD or moving average convergence divergence is a popular indicator used in technical analysis of stocks. Various trading strategies are also there using MACD. It is a trend following indicator.
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MACD is made with 3 things. They are
A faster moving average.
A slower moving average.
Average of difference between them.
Default MACD Settings
Default setting of MACD is 12, 26 , 9 Where 12 is faster moving average, 26 is slower moving average. 9 is 9 bar average of difference between them.
Main components of MACD are,
MACD line is calculated by subtracting slower moving average from faster moving average.
In default MACD , 26 period EMA is subtracted from 12 period EMA. That means MACD will have a positive value when 12 EMA is above 26 EMA and negative value when 26 EMA is above 12 EMA.
9 period average of MACD line is called signal line. It is plotted on top on MACD line.
MACD histogram shows distance between MACD line and signal line. If MACD line is above signal line, histogram will be green above above baseline. If MACD line is below signal line, Histogram will be red and below baseline.
Main use of histogram is to measure bullish and bearish momentum.
MACD cross over strategy
MACD cross over strategy is a commonly used strategy. Traders buy a stock when MACD line crosses above signal line and sell when MACD line crosses below signal line. MACD crossing shows a momentum shift. So that property has been used here to develop this strategy.
But being a lagging indicator, the success rate of this strategy may be lower. But you can tweak it to make better by practice and adding some more parameters for entry and exit.
MACD Divergence Strategy
MACD being a momentum indicator, you can use it to find divergences. Divergence between price and MACD indicator can be a strong tradings signals.
I have done 2 videos on divergence. Please check those posts for more details about this.
Upstox is a leading discount broker in India and one of the fastest growing discount broker. Ratan Tata invested in this company a few years ago. Recently Tiger global invested 25 million in upstox. It is growing fast with cutting edge technology and low brokerage and gaining market share. Upstox added 1 lakh clients in December month 2020 only. They are providing some of the best trading platforms for traders and investors and making it better with frequent updates. Upstox pro is upstox web trading platform. How to open demat account in upstox or upstox account opening process
To trade in share market or commodity or currency market, you need a trading account. To buy and hold a share in share market you need a demat account also. You can easily open your trading and demat account with upstox by filling their account opening form. Link is given below.
Upstox account opening process is completely online and you can open trading and demat account in a few minutes by going t…
FYERS All you want to know
Fyers is one of the youngest discount broker in India found by 3 brothers. FYERS word is acronym for Focus Your Energy and Reform Yourself.
Fyers is a Bangalore based company. Their aim is to provide best technology platforms to traders in India. I think they succeeded in it to a point. They have one of the best platforms for web, desktop and mobile. We will discuss about fyers trading platforms in detail later.
Here we discuss few things about this discount broker, ranging from account opening process, trading platform, brokerage and thematic investing. Fyers account opening process
Fyers account opening process is completely online. You can open trading and demat account online by filling online account opening form in this link : Fyers
Form filling is a simple process. You can refer this video to fill fyers account opening form.
COMMODITY TRADING IN INDIA WITH MALAYALAM VIDEO
You can find commodity trading malayalam videos below this post from our youtube channel Share Market Malayalam. Commodity trading in India may not be as popular as stock market trading in India. Its gaining popularity in India now and a lot people started trading in mcx commodities now. Here we discuss some basic things related to commodity trading and commodity market in India.
Forward contracts of commodities are traded in commodity exchanges. Future and options segment is highly leveraged trading intruments and a beginner should first learn and then only trade in commodities. A lot of beginners in trading gamble in commodities like crude oil and lose money. Some go for tips. But that is not a permanent solution. Learning to trade is always better than going behind tips for commodity trading. To be successful in trading, you need to learn technical analysis and develop other skills also which are needed for a trader to be successf…