What are the indicators you should take a look before giving a buy call?
The first thing you should have a look is their trendline.If the trendline is upwards then the following indicators will make your assumptions and predictions 100% accurate.
1.MACD (Moving Average Convergence divergence)
It is an effctive indicator where we can see the strength or weakness of the stock prior to the change in price valuest.If the MACD line (Blue line) cuts the signal line (Orange line) from above then it is a sell call.If MACD line (Blue line) cuts the signal line (Orange line) from below then it is a buy call.In MACD we can see the weakness first then the price drops or vice versa.Thus it is a great tool for identifing the price values.
2.RSI (Relative Strength Index)
It is a momentum indicator that measures the magnitude of recent price changes.It is an oscillator and it has range of 0 to 100.RSI below 30 says that the stock is little bit weaker whereas the range greater than 70 says that the stock is stronger.
3.MA (Moving Averages)
A simple moving average is calculated by taking the average of the recent closing prices in a time period.If 5 days EMA cuts the 13 days EMA from below then it is an anticipatory buy.When 5 days EMA cuts the 26 days EMA from below then its an confirmatory buy.
EMA-Exponential Moving Average
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