MACD Indicator For Successful Nifty Futures Trading

Trading the nifty futures is risky, more if you are not trained. It was a time when nifty futures trading was simply buying and selling securities based on conviction but now technical analysis, a science of forecasting futures prices based on past performance of the particular security. Technical analysis helps you to increase the probability of success rate of nifty futures. You typically will see three different time frames listed as numerical parameters of the study.

The first- the number of bars used in the fast moving average, the second- the number of bars used to calculate the slower moving average, and the third- the number of bars used to calculate the moving average of the difference between the faster and slower moving averages. While you are using these three pieces of data to draw MACD lines for the nifty futures, you are only plotting two data lines on a chart. Here’s the twist - neither of the lines on a MACD chart is a 12 day or a 26 day moving average of a price of nifty futures. The difference between these two moving averages is considered the “fast moving average” line you see plotted on the MACD chart.

The second line on a MACD chart, the “slower moving average”, plots the average of the previous MACD line. In other words, we have taken the original MACD line and smoothed it even further by averaging it over 9 days, resulting in a less erratic (less error prone) line. This is called “double smoothing” since it is a moving average of a moving average. To use MACD analysis in trading nifty futures, the two moving averages are plotted on top of each other. After a crossover, the faster-moving average is called to have diverged from the slower moving average, and that often indicates a new trend has developed.

Once you learn to use the MACD indicator, you are required them to implement it. It would be better for you to take help of an expert at the initial level. We at Money Classic Investment Advisers offer a recommendation on nifty futures to the traders who want to earn the huge return from it. If you also want to make a profit from it then you should also trade based on recommendations on nifty futures provided by us.