We recommend reading this chapter on Varsity to learn more and understand the concepts in-depth.


Key takeaways from this chapter

  1. A standard average calculation is an estimate of a series of numbers.
  2. Moving Average uses the most recent data and excludes the oldest.
  3. The SMA gives equal weightage to all data points in the series.
  4. In EMA, recent data gets the max weightage over the oldest.
  5. I prefer EMA over SMA because EMA gives more weightage to the latest data points more weight.
  6. Current market price > EMA = optimistic outlook. 
  7. Current market price < EMA = bearish outlook. 
  8. MA’s can cause whipsaws in a non-trending market, resulting in losses. To overcome this, EMA is used.
  9. The shorter EMA is faster to react, while the longer EMA is slower to respond in a crossover system.
  10. But when the faster EMA is above, the slower EMA. The trade will continue until the faster EMA falls below, the slower EMA.
  11. The longer the time frame for a crossover system, the lesser the trading signals.

43 comments

  1. Abhishek says:

    The voltas example also kind of failed. entry at 620 and exit at 590.

  2. Sneha Shembekar says:

    Hello sir
    Very nice video .thank you for this video.

  3. Harsh Gupta says:

    Best ever videos sir!!!!!

  4. Sasikumar says:

    In the Kite in the chart mode, how to add MA 50 and MA 100 Indicators in the chart. I did not find the option to add the indicators. Please advice.

  5. Jim Tatar says:

    How do we set ema in the graphic in kite

  6. Varsha says:

    Thank you for making it so easy. Love learning from your vdos

  7. Kapil says:

    पूरे भारत को ध्यान में रखो और सभी मॉड्यूल को हिंदी मैं ट्रांसलेट करवाकर नॉर्थ इंडिया के लिए भी उपलब्ध करवाओ। क्युकी इंग्लिश में पहले से ही too much बुक available है।

  8. Aditi says:

    Is EMA available in kite?

  9. Somnath Kalsa says:

    Which Cross Point is Entry & Which Cross Point is Exit ?

  10. Ananth says:

    when it comes to swing, intraday which moving avg. no. & Time frame should we use?

    • Karthik Rangappa says:

      I’d prefer something like a 21-day over 50-day moving average, end of day time frame is good enough.

  11. Dileep says:

    I am unable to add EMA indicator in kite…. Can please help me to solve this issue. One of the best video I saw

  12. Sandeep Phulwari says:

    Well all ok but where we get this feature on App to draw these lines… Searched but was not able to find it well

  13. Peter Pryor says:

    I assume we cannot make trades simply using the EMA’s. So in that case, can we pair the EMA’s with any other indicators? Any quick suggestions to help out plz..

  14. REENA says:

    wow ! that was such a great video …. personally which indicator would you use.
    How do we decide which EMA should we use?

  15. Sudhakar says:

    can not find Exponetial Moving Average (EMA) in Studies In Zerodha Kite.

  16. Sudhakar says:

    is’t Exponetial Moving Average (EMA) and Moving Average both are same???
    If itsn’t how can i found EMA in Zerodha kite Only

  17. Sudhakar says:

    Thankyou Sir

  18. Munni says:

    Kite – indicators – Moving average – settings – Input Type 50/100 what ever u prefer (Default it will be 9 ,so u can change to 50/100) – then set ok.

  19. Kevalsing says:

    If possible please include a scenario or example where each indicator has failed .

  20. Nikhil says:

    have one question !

    all these indicators ( rsi , ema ) also works for indices like nifty & bank nifty ?

    please tell

  21. Murtuza Bootwalla says:

    Why should we follow Moving Average line when the candlestick patterns with volume are stronger (for e.g. Marubozu with volume) shows a trend direction faster than the 50EMA line crosses 100EMA?

    • Karthik Rangappa says:

      Candles depict only the day’s action whereas the MA depicts the price strength or weakness for the entire period. So there is a difference between the two 🙂

  22. Murtuza Bootwalla says:

    i refer to the Voltas example here.

  23. Navin Krishna T B says:

    Omg this is real gem.

  24. shareef unnisa begum says:

    sir,

    How to add jurik moving average in zoradha kite.

    please advice.

    Thank you

  25. PANKAJ SHAH says:

    Sir,is there adaptiv moving average in our chart?

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