---
title: 'Moving Average & Exponential Moving Average | SMA- EMA Trading Strategy | Stock Market Training'
source: 'https://youtube.com/watch?v=7ASY4PtZUTQ'
video_id: '7ASY4PtZUTQ'
date: 2026-07-28
duration_sec: 1931
channel: 'Pushkar Raj Thakur: Stock Market Educator 📈'
---

# Moving Average & Exponential Moving Average | SMA- EMA Trading Strategy | Stock Market Training

> Source: [Moving Average & Exponential Moving Average | SMA- EMA Trading Strategy | Stock Market Training](https://youtube.com/watch?v=7ASY4PtZUTQ)

## Summary

This video explains the concept of moving averages (SMA and EMA) and demonstrates how to use them in trading strategies. The creator uses simple analogies and practical chart examples to teach viewers how to identify buy and sell signals, and how to use moving averages as dynamic support and resistance levels.

### Key Points

- **Introduction and Confusion** [00:02] — The video starts by showing a chart with multiple moving average lines (yellow, white, green, purple) to pique curiosity and set up the explanation of what these lines are.
- **Concept of Average** [01:04] — The creator explains the basic concept of an average using the example of 10 people and their money or weight, establishing the foundation for understanding moving averages.
- **SMA vs EMA** [03:44] — The video distinguishes between Simple Moving Average (SMA) and Exponential Moving Average (EMA). SMA gives equal weight to all data points, while EMA gives more weight to recent candles.
- **Calculating Moving Average** [05:12] — The calculation involves summing the closing prices over a specified period (e.g., 20) and dividing by that number. The 'moving' aspect comes from updating the average as new data arrives.
- **Moving Average as a Guide** [06:41] — Using the analogy of body weight, the creator explains that moving averages provide a probability of future price movement, helping to guide trading decisions.
- **EMA Weightage** [08:35] — EMA gives more weight to the most recent candle, making it more responsive to recent price action compared to SMA.
- **Time Frame Importance** [09:20] — The effectiveness of moving averages increases with larger time frames. Daily time frames give better results than 15-minute charts for delivery trading.
- **Applying Moving Averages** [12:02] — The video demonstrates how to add moving averages on a chart (using Bank Nifty as an example) and how to adjust settings like length and color.
- **Common Moving Average Numbers** [14:22] — Commonly used moving average periods include 7, 21, 50, 100, and 200. The combination of 7 and 21 is popular for intraday/scalping, while 50 and 200 are used for long-term investing.
- **Crossover Strategy** [16:25] — A buy signal is generated when a fast moving average (e.g., 7) crosses above a slow moving average (e.g., 21). A sell signal is generated when the fast crosses below the slow.
- **Moving Average as Support/Resistance** [19:57] — The 50-day EMA is highlighted as a key level for investing. If the price is above the 50-day EMA, it's a buy signal; if below, it's not. The moving average acts as dynamic support and resistance.
- **Price Reversion to Average** [23:58] — Prices tend to revert to their moving average, similar to how a person's weight fluctuates around an average. This creates opportunities to buy near support or sell near resistance.
- **Intraday Strategy with 7/21** [27:04] — For intraday trading on a 15-minute chart, the 7 and 21 EMA crossover strategy is demonstrated. The video emphasizes waiting for confirmation and using trailing stoploss to maximize profits.
- **Golden Cross** [30:55] — For long-term investing, the 50 and 200 EMA crossover (Golden Cross) is recommended, which is considered very beneficial.

## Transcript

Before I explain the moving average in detail in this video, I'll try to confuse you a little. Why would I confuse you? Look here, you might wonder, " What is this?" I mean, there's a yellow line, a white line, a green line here, and a purple line below. What's
going on? This video Today, after learning this information, you can increase the accuracy of your trading.
Now we'll talk about it. First, this line is trying to explain what it is. Now, let's understand it one by one. Now, if you look here, I've Now, if you look here, I've
significance? First, let me explain the concept a little bit, then I'll come to the C chart and tell you how to use it. Now, there are many times in the market to confuse you, for example, a simple moving average is
simple moving average is called moving average adaptive.  Then the called moving average adaptive.  Then the explanation moving average will come, then the tweet moving average will come in this way in this lamp, or will come here Delhi moving
come here Delhi moving average, what is it now, so many means what is its lead, what is this happening, so first of all you understand the moving average and what does it mean, now to explain this let's take an example, suppose there are
10 people in a group, now I ask you a question, how much money do these 10 people have on average, it is very simple, if you want to check how much money they have, then to find the average, whatever money everyone has, in this case someone has thousand rupees, someone has
₹2, someone has ₹500 or sequence ₹2000, in this way we will divide the total of 10 people and suppose for example I have
and suppose for example I have figures etc. of d10, brother the average is ₹2000, everyone in this room has now, let me say that this is a group What is the average weight of 10 people? It is very easy for you to find out the weight of anyone, someone might be 70,
someone might be 25, or someone might be 65, or you can take 10 numbers in the same way and make a different pattern, so what will happen with this, for example, if you went to the hospital with acidity, then you told me your friend's address that there is an average, that is,
2017, and take the responsibility, if it is ₹1000, how did you tell this, simply you divided the total, now this moving average that you hear about,
it is also that simple, friend, this moving average with its strategy for celebrating birthdays, this word is the simplest trading strategy of, if you ignore, especially the one who understands the situation now, can judge what is the connection with so many examples
because it has to do with that now look, there is only we must have heard that it is  Moving average so this moving average simple moving
average daily moving average one of the same now if you want to do something a little more advanced people talk about adaptive Vinay Press that Markand no it's fun here that Markand no it's fun here one thing is most useful about that people
now talk about it not Android apps but on social media now I use it and I will talk about this only so the average that we have calculated right now is not simple growth tax let me add a little difference and waste moving average I do
tell you okay you don't need to understand all those things in the market so it is useful in Excel those people who are using it regularly need to understand those things more so when we want to understand these your moving average that I will
write it here okay your simple moving average and one is moving average and one is exponential moving average cost there is a difference between these two simple moving average as you said what you will do and I  Let me
tell you how people used to calculate simple moving averages in the past. Today, we will show you a simple explanation in one click. The moving average appears in front of you. What people used to do in the past was to connect the price. Today, you
take a candle and inside the candle, you see an open. You see a high. You can follow it and see a low. Now, the glass price is already important. Now, keep connecting the lines and you assume that your upside size has been corrected. If you
use it, it stops here too. So, what did you do? stops here too. So, what did you do? Connect your dots. You stopped the line according to the line. You got a curved line in the points. Now, what did people do here?
Now, what did people do here? I used to calculate my simple moving average. So, this was the earlier method. How do you calculate the moving average? Now, set the last 5,000 How do you calculate the moving average? Now, set the last 5,000 and divide by how much time. Now, if we
talk about an example, you see a moving average. So, it means that you are
invest on time, then if  I will put a time of 15 minutes on it, so it must be her period, that is
period, that is 15 minutes, so that B scandal which is of 15 minutes is made in her skirt, so in her skirt, so here you understand and I also want to
see that as time goes by in the market, the price is taking action, no, no, the channels will keep on changing because no, the candle for you, the previous one is getting left behind, so this
line which is continuously moving ahead, so this is turning, if it stops at one place then it if it stops at one place then it is simply your average, but when we are talking about the price moving forward, then what is a moving average, the previous one is left behind, the forward one was falling,
as if the control will remain, the line will keep on drawing ahead, so that is why it is called a moving average, which is like a blood test, but how will you know from this, see, if I want to know the coverage of something, for example, I ask you,
what is your average weight, sometimes you gain 5 kg, sometimes it loses 5 kg, gain 5 kg, sometimes it loses 5 kg, but my average weight is 975, if it is less then it is stitched.  If it gets too much then it goes up to anti so now what will I do next time
friend when it gets tasty then it can be proven here it is confirmed and it can mean God forbid otherwise I am getting fatter first you are not believing it then it is possible but if your house gets activated then
I will put a probability that it may be back to 75th again and if in any month you pay attention to VAT and take you to the request then what will I think friend right now seven daily has reached women from a team, we will take
reached women from a team, we will take 75th again so the average guides me to a probability of what can happen and here let's assume a simple moving
average now the explanation means now look here explanation means now look here I gave an example mar20 I can also take a moving average of 218 crazy I took a moving average so how much
period is it talking about friends it is going to calculate the average of candles here and give it to me friends candle fast friends what happened earlier  That too is equally important if you understand that right now a corner emerged in the middle when the Corona
period was going on in the middle then the market was moving without big bottles now at that time friends what happened a day before will it matter to you even today for example if someone is watching without dress at that time then friends there is a
lot of difference between a day before and what is today and because there is a lot of difference then the because there is a lot of difference then the concept works there in ma0 means explanation moving average explanation what does it mean that if I
talk friends let's talk about 20 let's talk about 450 which is the most important price for me which was made in the last scandal it is the most border for me which is less important than that which was made in the channel before that which is
made in the channel before that which is candy makes and show then the most audio has gone so when we talk about explanation moving average then there we  More weightage is given to the last candle formed,
not the candle formed before. Friends, if the candle is formed slowly, we give it bottoms, so the basis of the main difference between them is this, and if you want, you
can also use this, many people use simple moving averages, the use simple moving averages, the difference here is that if you smoke, if you invest, then simple moving average will give you results, in
such a situation you are going to apply it on time frame, the bigger the time frame on which you apply the moving average, the better the results you will get, suppose if you are going to apply the moving average on the daily time frame, then you will get very good results,
whereas if you are going to look at it on 15 minutes, then your accuracy is definitely more, for delivery time frame, 15 minutes is done and 30 minutes is Sonu Nigam, but if you are an internet reader, then I will search you that you can go for this, okay now
I have given you the basic concept here, let's London strategy, not like this And what is this message strategy, now tell me what will happen with this, so now what will happen with this,
so I gave you an example that like you have weight and it tries to come on it, the price also tries to come on Everest and here because it is a moving average, the average keeps increasing, you understand this, as the age
increases, what are the things, so here I have the option open, regret have a demat account, then you can open a demat account for free by going to Balance Ud Otherwise Off, the biggest advantage is that MC is taken here, there is no
lifetime maintenance charge, hotel charges, all that is not there here, so this is the biggest advantage, in these side boxes, there are also offers called referral, people are typing me on Instagram, flight mode world, if you want,
you can also earn by opening a Safar account and referring and earning, now regret here, when I am talking about trading, why did I say trading because it is available here, so here you  Trading, open the chart in one way, your integrated system is like this,
what have you done here, here I have taken Bank Nifty and in Bank Nifty you will go to half cup indicators, you simply write this here, then the explanation moving average f-18, this explanation will be visible to you here,
now when it has come, understand from here and see here, first of all when I am talking here, now see, I have put many moving averages, this explanation here, now I have removed all of them, I want to show you what it is,
see here I have taken one here, another one here, now you can change the settings by going here, now as soon as you click on settings, you have the option to enter input here, see here friends, I have taken SIM in Hui,
here I have changed the style for length printed life, now concept first, what is this important concept, what is this important concept, if I tell you only and only I  I am also telling you some color,
if I tell you only and only I  I am also telling you some color, the bigger the number will be, so now we have four numbers, let me repeat in which number, 200 feet t-20 and seven four numbers we have here, I have to
t-20 and seven four numbers we have here, I have to tell you in a glance which is the two hundred moving average explanation disinvestment line, you will say the farthest one, the one you said is the biggest number, so this line that you see here is purple, this
line which is made purple, this is explanation moving average 210, now I had said the green color line is the second one, it is free, so this is our expansion moving average, this is Africa, similarly the white one became 21 and
this one became 7, it took you absolutely no time in this, sheg and I will show you how to apply it, I have written here this moving average doubt, further we have taken 1 more, now
like we have taken one more  I'll go to Settings, go to Input, and here I'll set it to Hundred. You can use a more interesting color from the side. I'll just tweak it a little bit and choose a different color. just tweak it a little bit and choose a different color. Okay. So now what I've
done is I've put a Someshwar Moving Average in front of you and shown you how to do it. front of you and shown you how to do it. Because I've put a lot of them here at once, so first I'll
just explain this one tomorrow, and then we'll gradually understand more things. Now you must have heard that moving averages tell you about support questions. You know about the right entry. You know when you should take a long entry. You
also know when to buy or sell. You learn a lot about it. So, are you understanding what I'm writing now? Let me explain. Now, look, you've got so many moving averages, all of them have their own importance. I've
taken the numbers that most traders use. Now, which numbers are I using? I will write in front of you, one I took the number seven I took took the number seven I took 2110 I took the number only five eight one
2110 I took the number only five eight one I took the number hundred 1 minute number here 210 210 in my number now you should write more here why were I writing this so first let me tell you its significance
then I will explain it to you show me I will write it here fast moving average write it here fast moving average I will write it here slow moving I will write it here slow moving average is definitely used in CDMA so from
average is definitely used in CDMA so from okay pass explanation moving average slow explanation movies best it must be sinking in your mind that from here I slow explanation movies best it must be sinking in your mind that from here I
why did I not write abstinence I will give my opinion so these figures that I have told you might have gone into your mind because your strategy is going to be made from this only now
this cystitis will be made it will be made at this stage we must have met on the diet then it gets related to you maximum above this  You do n't have to enter number input in the moving average, it is of
no use above 121, what is this, what is this combination, what does it mean, but when you create explanation boys on the chat
with 721 input, then see, two lines will be formed which will be formed with your friends, which one will be it, definitely you will say the one in which the import is less here,
say the one in which the import is less here, meaning the seven will be nearby and 2100 will be a little far, so if you understand it this easily then you have understood a lot because after this let's talk about our strategy, when
you see here, first of all I am drawing 221, this is my twenty one moving am drawing 221, this is my twenty one moving average, when it will crossover from below,
average, when it will crossover from below, our fast moving average, the fast one, is seven below 21, just this much concept has to be understood, when there will be crossover from below, the seventh
which is fast, for example, any of these fast moving averages will fast moving averages will provide the slow one from below, so Simply slide this much sample and your fast line is the
line of fast moving average, let's say it is slow, the fast line, when the is slow, the fast line, when the process happens from above here, then your sell signal will be generated, that from
now on 12121 there are 500 to 1000 different pairs that traders use, which one should you use, if you scalp in captivity or do internet, then this 721 leg will be useful for you and if you
can do it in a way that you are a long-term investor or you want to invest in such a way that investor or you want to invest in such a way that you get big profit here and in that you are definitely going to talk about daily investing, then you deliberately
you deliberately write this at 54200 because it is called golden brown sugar. Now tell me one thing, I told you that whenever you press the fast line I told you that whenever you press the fast line or fast line of your slow
or fast line of your slow MLA from below, then it is formed, MLA from below, then it is formed, here I also told the exact opposite of this, which will here I also told the exact opposite of this, which will cross from above, so if you press this Harish
Lodhi from above, then our sell will be formed, just this conductor.  I understood it so easily. This is a highly important trading strategy.
Apart from this, what people follow traders use, you can use our moving average and explanation moving average. It explanation moving average. It
use are: first, you use border lines, second, you use trend lines, and third, you can also use
expansion during the British period. How does it work? Let's say the explanation line is a line of ghee. Now, what will you see? Now, this can become very important. Now, this can become very important. Many people also talk to me.
I was in the gym, my trainer asked me how I would like to buy shares of this company. Well, I said, you gave him an explanation more village protection. He said what happens, brother. Now, many people do n't know about it. What I will tell you
about it, experts, is extremely important. experts, is extremely important. Whenever you are investing somewhere, if you  But also for investing, if you are doing enrichment then you have to put this 50 day chart.
you have to put this 50 day chart. Now any stock XYZ, I will show you an example right now and if you want to invest in it then I will tell you that first of all you have to do one thing that the price is
you have to do one thing that the price is above or below, if it is above or below, if it is above, you can buy and above, you can buy and if the price is below, you will not buy.
Right now I am not talking about selling but I told you the boldest content first that you will buy only when the price is above the explanatory moving average, if the price is below the explanatory moving average then you will not buy. I will give an example
now suppose a lot of people are interested, nowadays people have a different kind of perception, what is that training that brother, I saw this stock, that brother, I saw this stock, it was at ₹140 at one time, it has come down to
₹40, now I will buy from there. You must have understood which stock I am talking about, so I will show you.  I will also give you this, if you see it here, you will understand it better. Let's see here, it has been done, also give you this, if you see it here, you will understand it better. Let's see here, it has been done,
Many people are interested in knowing this. Here I will change it, let's make the input free at this time. Okay, I will
talk about the format of GO Delhi time frame because we are talking about interest. And we will remove the second one from here as well. So I am going to
If you did not answer me, then you did not understand anything, but if you answered, then I have explained a lot to you. Concept and reassembly, I want to ask you this explanation is the line of morning address and I talked about shifty
explanation morning prince. So, we look at an average of 50 candles, that is not mixed. Here I have a question. Price explanation will be above behind the moving average.
explanation will be above behind the moving average. Ishwar price from them. If you invested in Zomato even at today's rate, then my  What would be your suggestion to start investing? If you are doing anything after doing fundamental research, that is a completely different concept.
If you are doing it after looking at technicals, then entry is not made for the technicals right now. entry is not made for the technicals right now. Now come, Madam, take the name of any other stock, for example, right now with very good momentum, let's take another example
momentum, let's take another example of ITC. Okay, now the example of ITC which I took, now you tell me yourself, here I have taken the example of 80C you tell me yourself, here I have taken the example of 80C and after the example,
look here, okay, right now I have not told you when to take entry. I told you a simple sentence. Some time ago, a friend of yours told you to buy ITC. Your friends told you to buy ITC.
What did you see? Remember what I said that in Pushkar, if the explanation is said that in Pushkar, if the explanation is I will buy it, else I will not buy it. And let's assume that your friend will buy it at this time or at
any time at this time.  But I told you to buy it from your friends and family, if you see the buy it from your friends and family, if you see the price is up or down, you can buy it from here, the second question has been raised, question number two is when can I buy it, I can buy it
here also, I can buy it here also, where can I do it, so do you remember one thing I told you about marriage, I myself also use it a lot for light entry, similarly many people also use moving average, so I have
allowed disputes, but you also demanded that he is understanding you add this also here, see because this is the average price and the price will go
towards its average, I have given you examples, remember that if a person sometimes goes to the people of laughter and sometimes to the people of sugar, then we will see that the average comes close to 175 and goes far away from 725, then it comes back to that and if it goes to 175, then
also it will come back, similarly the price will come close to its average  Let's try because it is a moving average, it is possible that the man is getting fat, so we will keep calculating the average, we have calculated its average, now understand this here, whenever the price
comes near its moving average  So I knew that what is justified in your explanation here also works as support and resistance.
you got support. So, when the price moves from the support, the support surprise went up. Then what did you get here, did you get support? Similarly, right now you are seeing the price going up and here you will see the explanation, Morning Bridge is also going up.
Now here if you have seen Bangalore, England and Wales, you can wait that the price is near your moving average and you can actually buy because the
and you can actually buy because the price is above the moving average. Now, what are we doing here, we are looking at support here, similarly it can also be resistance. Now if I talk about ITC basically, then
also see sideways movement for a long time. In the cyber market, no train works very well, madam ji. So, week you will see the explanation, moving average and what I will tell you, you will also feel that the average and what I will tell you, you will also feel that the
You can get a confident situation, big investment, you were getting trained towards understanding this, so in war, very weak officer, so you see here in this situation the price is up and down, you see here the prices are up, so you can definitely hunter, now I
said it works like support and resistance, let's see this here also and after that I will tell you that if the price explanation goes below the moving average, then a shell is generated from there, a shrinkage is generated, right now I was
not talking about juice and I am going to show you, but if you simply write one line, that is also very important for you, so now we were talking about increasing sense, for example, see here that when for price explanation moving
average, I told you that it is generated from here, the price will come up again, but till where, now here, the question of yours, moving average will work first, the juice of resistance like this is below again near the work, now again below  11 This institution here has shown the
resistance very well. When the price breaks it, then what does it become for us? It becomes support for us. After breaking the support a little, it again becomes resistance. So, the basic fundamentals are clear to you
here. As I have shown you, many times the price came to its expression and then went above it. Now you have understood it simply. No, sir, moving average and your sense of support is clear. Now the trading
strategy related to this is formed. Let us understand what is formed. So let us come again. Many of you add Bank Nifty matar in Nifty. Let me open the soil. Okay, I have added Duty Sainik School here. And what we are going to do here now is our
time frame will be 15 minutes because many people do intraday trading. You can also come on 15 minutes time frame, but also no problem. Okay, so let me show you this here problem. Okay, so let me show you this here first of all, we will do it here.
So one by one and we will get now we will change it here, which by default commission would not have come, it has already come,
we will make it seven and we will change the color a little,
we have already done the color change vanguard and increase its thickness a little, okay increase its thickness a little, okay now look here, now I will make it full screen also and you can see easily and see here the mid-mid is simple, we were
talking about the biggest price above, we have taken this of 721, now you have to simply look here, now you will see there also which is 20 of seven, this one
which is near you will be of seven, that means the white one is seven and the twenty one which is a little far, so the blue one which is everyone is perfect, now when we talked about cross v, which would be the fast one which is small, so seven because it is small, it has passed, this
because it is small, it has passed, this when I break the slow, I will look from below, from here our bank will be generated, it will be the final date, now when you buy, what do you have to see, you have to buy, I will see that single is generated here
Wait for the confirmation, you are entering the NAAC scandal, many people will say that you are mentally ill, but I said that the tree type situation happens many times, people who do regular treatment will know what I am saying, that is why I will say that
after confirmation, mix the enrollment grade people, when they first hydrate the Holi panel and in this scandal of your stoploss, what will you take for that people, you will take what will you take for that people, you will take stoploss, now here you trail homes,
you use trailing stoploss because when you look here again, how big you can see that such a huge point car rally has come, then you use trailing stoploss,
if you want to exit with a small profit, Sanjeet, here your point difference of stoploss is now 123, what are you must read, but if you use trailing stoploss, if you
trail, then you can make a bigger profit, so in this way you can join Download Talk How can you link to this? Can you select in this way? So let's go a little earlier. For example, look here, there's
a jam in front of you. It just went into the mud. If you look here, see which white line is this? This pass line approval is slow, it's loosely far away. Now it's moved upwards and is 2997. And look here, here is our electricity bill. In it, the Sun God
means seven. Explanation: Boeing 727, explanation: slow moving. You looked at it from above. explanation: slow moving. You looked at it from above. 1622. Now see how you could have made a bigger profit. If you want to do 1231, this will
give you a progress report. You can divide. And finally, understand the biggest thing here. When you see the crossword again, then before that, exit. So, I hope you understand this trading side. This is it. For Android, if your time
scale is a little longer, then let me clarify the concept for you again. clarify the concept for you again. You can change here.  You can, right now we used 721, slow was our twenty one and fast was our seventh, similarly you
can make a cigarette with 2150 and here if you do a long toe rise early and here if you do a long toe rise early trade then 54200, this will give you golden brown and that will be very beneficial for you, morning voice, you must have
morning voice, you must have effort is that if any child keeps watching our videos, then maybe our videos will become a little long, but you tell us in the comments that if
this video becomes a little long then you will see, finally in school video, which is the can tell us in the comments, a lot of questions come in your mind, then create video, song, friends, topics, finally, after watching this video, like this video of your love, do share it,
in your friend circle, so this little hard work can help a lot of people, Facebook is visible on the duty of those who watch the video demat account on Abhitak. Finally, you can subscribe in the comment box for 100 minutes.
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