This is nice example in understanding the importance of 50 and 100 DMAs as accessories of 200 DMA. Firstly, a) Price moves above 200 DMA is the first thing to take note of, b) 50 DMA gives a cross to 200 DMA on the upside which boosts the bullish sentiment, c) 100 DMA gives upside cross to 200 DMA which further accelerates the upside move.
Secondly, Journey upwards will have corrections due to profit booking done by traders (investors may like to sit tight). Corrections may often bring the price towards 50 and 100 DMAs.
The same is to be read in reverse in case of downtrend.
Secondly, Journey upwards will have corrections due to profit booking done by traders (investors may like to sit tight). Corrections may often bring the price towards 50 and 100 DMAs.
The same is to be read in reverse in case of downtrend.
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