Daily Moving Averages
How to Make Money from DMA?
- All high quality stocks have a tendency to bounce back from 200 DMA in India which generally becomes a point where investors flock to buy the stock and provide necessary stock to the market.
- Nifty and Sensex equally finds support at 20 DMA followed by 50 DMA followed by 200 DMA and lastly at 52 week DMA. So as a strategy one can enter near the support and exit near the resistance and this strategy works best when index or stock is in a channel formation.