There is a very simple answer: It works most of the times and when it works, it rewards in a big way.
Science of Stock Price Action: When stocks are in a strong uptrend, they become attractive buys at Long-term moving average like 200-day moving average.
Let me share few examples I shared as Case Studies over last six months -
Berger Paints at 200 dma in March 2016
Asian Paints at 200 dma in March 2016
Navin Fluorine at 200 dma in March 2016
Jet Airways at 200 dma in July 2016
These are textbook charts and they have worked as conceptualized. Obviously, the Bullish market structure played a big role in strong results in short period of time but that's the whole point of harnessing the power of charts when times are good.
Does 200 dma work all the time? Well, nothing works all the time in the market. One of the key skills one needs to develop - to develop a gut feel based on experience on when the 200 dma will work, and when it might now. The primary objective of Premium Case Studies section is to help you go through that Live experience of what works and what does not under different circumstances.
If you want to explore a new world of financial markets through charts - I invite you to buy "Science of Stock Price Action" and explore the new world.
I love charting. I am challenged by charting. I am entertained by the charts.
— Peter Brandt (@PeterLBrandt) July 28, 2016
Science of Stock Price Action
There is a logic that stocks follow when they make big moves. I have tried, to sum up, those concepts in a methodology called Science of Stock Price Action.
Do these concepts work all the time? Absolutely not. But when they work - they reward in a big big way. There are many factors at play primarily the overall market environment. The objective of my website is to put forward many Live case studies before you so that you can learn how these patterns work and why sometimes they fail too. The whole idea is to illustrate and make you understand the whole logic behind it.
If you find my work interesting - I will encourage you to buy the book and access Premium Case Studies. The idea is to demonstrate live how patterns unfold and work. They succeed, they fail but the whole process is real fun. I invite you to be part of it.
Price: INR 3500. Video Book + The access to all new chapters (Premium Case Studies) for next 6 months
Video Book developed by Deepak Singh (firstname.lastname@example.org)
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers