I have personally noticed that a very good indicator of SHARP breakout moves is ... Moving Average Compression. That is a situation when 20,50, 100 & 200 DEMAs start coming together. When they start compressing / converging in an uptrend, they give advance signal of bearish reversal and vice versa. In a side ways market too, direction of compression gives a good indication of which direction a breakout is most likely to happen.
excellent!
ReplyDeletevery knowledgeable video sir, thanks.
ReplyDeleteNice video on the basics of moving averages.
ReplyDeleteI have personally noticed that a very good indicator of SHARP breakout moves is ... Moving Average Compression. That is a situation when 20,50, 100 & 200 DEMAs start coming together. When they start compressing / converging in an uptrend, they give advance signal of bearish reversal and vice versa. In a side ways market too, direction of compression gives a good indication of which direction a breakout is most likely to happen.
Have you been tracking this phenomena?
What are your views on this?
Will be good to know.