2. Utilize Moving Averages for Informed Decision-Making

Incorporating moving averages into your trading strategy can provide valuable insights:

200-Day Moving Average (MA): This long-term indicator helps identify overall market trends. Stocks trading above their 200-day MA are generally considered in an uptrend, while those below may signal a downtrend. Volume analysis alongside the 200-day MA can offer additional confirmation of trend strength.

Shorter-Term Moving Averages: For more immediate signals, the 10-day and 21-day exponential moving averages (EMAs) can be effective. These are particularly useful for active traders aiming to protect early profits, though they may also lead to premature exits if not used cautiously.

By combining these moving averages, traders can better time entries and exits, aligning with both short-term momentum and long-term trends.