Looking for some trading strategies for the Indian Stock Market? Well, those of you who believe if strategies vary from nation to nation, then the answer is “Yes” they do. All internal and external factors within a boundary of a nation affect that country’s stock market performance.
For example, budget introduction for a sector is an example of an internal factor. However, conflicts with relative countries are an example of external factors. All these factors affect the stock market positively or negatively.
So, let’s begin by talking about some old-fashioned or very simple trading strategy i.e., the Simple Moving Average Crossover strategy.
What is the Simple Moving Average in Trading Strategies?
The most common and widely used trading strategy is the Simple Moving Average Crossover strategy with 50 and 200 days. 50 and 200 are two different time graphs SMA (Simple Moving Average). These two give two signals bullish and bearish. So, if 50 SMA crosses above 200 SMA, it is a bullish indicator that means buying signal. On the contrary if 50 days SMA crosses beneath the 200 days SMA, it is a bearish signal ie., the selling signal.
Still have a doubt in your mind then backtest this strategy with your selected share and you will be shocked by the performance of the strategy.
It’s always been advised not to completely rely only on one technical indicator while framing your trading strategy. Try multiple indicators and their signals to support your trading decision.