How i know its upper trend or lower trend?

Question

if i use sma(15) and ema(15) to idenify the trend

the graph is plotted with the past values only

so how should i identify the trend?

what are the factors should i see?

Answer 1

As you might be knowing, SMA, EMA are lagging indicators.  They show the trend after the trend has picked up.

But in any case, you should compare the moving averages with the price of the stock itself.  Or else you have to use the Moving average crossovers.

Look at this good article here which explains about this :

Answer 2

Hi...

look, here wee all talk abt past trends( remember Tech analysis is nthin bt predicting the future using the past/historical data),

wht u have to do is, gather data (ie.., SME nd EMA), at least fr 1-1.5-2 yrs.... thn see whether SME is downward sloping ur upward.... u will cme to knw abt the long term trend for a particular stock...(try using this for any TECH sector stock and ny power stock) u will see the difference....

make two straight lines, one touching all resistance levels nd other all supports..., thy would provide u with long term support and resistence lines...and if the stock breaches that we conclude it by sayin 'Bucking the trend', nd can be used as a signal for trend reversal....

wht all i discussed is for long term investment stratergies.. these things are normally used in bear trends to find trend reversals or see the resistence...