Here's why moving averages are a must for your trading model

Intra-day traders consider lower averages such as 9-DMA, 13-DMA, 20-DMA as this helps traders with swing trades wherein they want to capture profits on the day-to-day basis while mitigating risk.

One of the simplest techniques to gauge the trend of a stock/market is Moving Average. It is classified as the average value of a security over a specified period. Usually, when the price trades above the average, the trend is considered as bullish and when the price falls below the average, the sentiment is said to be bearish.

Most common moving averages

There are various moving averages that assist in identifying the sentiment of a stock. The basic and most effective averages are 50-day moving average (50-DMA), 100-DMA, and 200-DMA. The combinations of these moving averages often indicate substantial movement