Moving Average is another tool used but for a different purpose than most technical analysis books and analysts say it should be used for. In my system, MA in an uptrend allows us to ride the profits. As long as price bounces up from MA line, profits on a long position remains intact and grow more.




On a downward journey, see how MA lines are preventing the price to break above, denoting continuing selling pressure. If we had shorted, we can continue to hold short position and earn more profits. In this case, the market is again reversing with a 98% Buy signal at 3723-25 level. That's when we can square up.