Good evening everyone, today is a day of continued gains, and all of our stocks are maintaining a good

upward trend. Firstly, let's analyze the market. NIFTY rose 0.72% today, basically recovering from
yesterday's decline, but the trading volume was smaller than yesterday, which is a good phenomenon.

This indicates that within the same range of rise and fall, the bears need to pay more shares to push
the index down, while the bulls only need less capital to push the index back to its original position.
With the continuous consumption of short-selling power, the contradiction between the bulls and the
bears in the range of 21,200 to 22,100 will be resolved soon.

After the contradiction is resolved, the market will show an upward trend. When we see fluctuations
in the future, we can understand that there are bullish and bearish contradictions. These
contradictions can be brought about by objective reasons or formed by artificial control. The range
fluctuations caused by artificial control mean stock price manipulation, which generally occurs in small
-cap stocks, and the stock prices of large-market-value stocks cannot be manipulated.

All the factors in the development of everything in the world are because of contradictions. If there
are no contradictions, there will be no driving force for development. For example, why does India
need to develop its economy? Because we aspire to become an economic power, a technological
power, and a military power. If we don't have such national expectations, what's the use of
developing the economy?

When the contradictory problems are resolved, all developments will go smoothly. In the stock
market, such smooth development is called a trend. Currently, there are some contradictions in
NIFTY's range oscillation, such as the contradiction of monetary policy, the contradiction of industry
valuation judgment, the contradiction between profit-selling and buying, and the deviation of the
technical aspect.
Some friends asked me when the index could break through this range. I'm sorry, I can't give an exact
time. I can only tell you that it will definitely break through and continue to rise soon. Recently, some
friends also asked me why some stocks can keep rising while some stocks can't. Today, I want to focus
on explaining this issue.

What we need to be clear about is that the rise of stocks first relies on the influence of major changes
in the times and the world. Every 10 or 20 years, major changes will occur in the world, and the
popularity of industries will alternate with each other. New and old things will replace each other. No
industry can maintain permanent development. Industries that no one invested in before will not sink
permanently. When the times require it, these industries will start to rise.

The main reason for the rise of a certain industry is not how excellent the company's operator is or
how much profit the company makes. It is that the world or the country needs to develop this
industry. With the promotion of these two forces, even companies with poor previous performance
will also develop rapidly due to the sharp increase in demand. We can understand this as the fate
of the industry.

On this basis, the secondary reason is the operation of the company. We can find some high-quality
companies in the industry to buy and hold for a long time, and the rise in stock prices will have
inevitability, then your profits will skyrocket. Why do many excellent investors succeed? It is because
they were born in an era of economic development, found the right industry, and chose an excellent
company to invest in.

This is the fundamental reason why stocks rise. So, what are the reasons why stocks don't rise? First, it
is not a hot spot of the times, and there is not enough momentum. Secondly, the development space
is narrow, there is no expected future development, and there is no framework of profit model.
Finally, due to these reasons, there is no attention from funds, and only small and medium-sized
investors are trading, without the precipitation and long-term pull-up of large funds.

One of my favorite investment maxims: No one can get rich by shorting their own country. Investing
in a bull market is a very simple matter. We don't need to study too many stocks, nor do we need to
buy many companies, nor do we need to short the index because of a little room for correction. These
behaviors are very irrational. Please follow me, and I will help you solve these problems.

Now let's start the explanation of tonight's technical course. Today, I will share with you how to use
the signals given by the moving average system to buy and sell in actual combat. The golden cross
pattern of the moving average consists of two moving averages. A short-term moving average crosses
a long-term moving average from bottom to top, and the long-term moving average moves upward at
the same time. It appears in the early stage of the rise, indicating that the market is
bullish in the future.
Investors should pay attention to the following in practical operation:
(1) If this signal appears after the stock price falls sharply, it can be actively bought.
(2) Medium and long-term investors can buy when this signal appears in the weekly or monthly K-line.
(3) The greater the angle of intersection of the two lines, the stronger the rising signal.

The golden cross must meet two conditions simultaneously: ① The short-term moving average
crosses the long-term moving average from bottom to top; ② Both the short-term and long-term
moving averages are moving upward. After the golden cross appears in the moving average trend of
ADANI ENERGY SOLUTION LTD, the short-term stock price rises rapidly.

In an upward trend, the golden cross of the moving average indicates that the stock price or index will
rise, which is a good entry point. Especially in the long-term bullish arrangement of the moving
averages, the golden cross formed by the medium and short-term moving averages. The following
chart shows the market trend of M&M from May to September 2022. The moving averages form a
bullish arrangement of climbing up the hill, and the 60-day moving average continues to rise steadily.

The index rises all the way under the support and boost of the moving averages in each cycle. During
this period, the moving averages with shorter cycles formed a golden cross three times after a brief
adjustment. After each golden cross, the index continued to rise. Traders can enter the market to buy
stocks after seeing the golden cross, and the probability of making a profit in this
operation will be high.
In a downward trend, the golden cross of the short-term moving average mostly means that the stock
price or index will rebound, and traders need to be cautious when entering the market to buy.
Especially in the bearish arrangement of the long-term moving average, the golden cross formed by
the medium and short-term moving average, do not buy stocks. As shown in the following figure, it is
the trend chart of MAHINDRA in November 2016. After the previous consecutive decline, the long-
term moving average forms a bearish arrangement.

In the rebound in the above figure, the stock price stopped falling and rose, forming three golden
crosses of short-term moving averages one after another, which are the 5-day moving average golden
cross of the 10-day moving average, the 5-day moving average golden cross of the 20-day moving
average, and the 10-day moving average golden cross of the 20-day moving average. However, shortly
after the stock price golden cross, it started to fall immediately. Then the stock price rose again, and
the 5-day moving average golden cross of the 20-day moving average. However, constrained by the
60-day moving average, the stock price still rose for only one day before turning to rise and fall.
Traders face significant risks if they enter the market to buy.

During the consolidation and oscillation, the moving averages of each cycle are bonded, and the
golden crosses of the short-term moving averages are too frequent, most of which are false signals.
When the stock price or index is sideways and oscillating and consolidating, except for the bonding of
the moving averages and the passive repair of the moving averages, the signal effect of all other
technical forms of the moving averages is extremely weak.

As shown in the following figure, it is the daily trend chart of MAHINDRA in May 2007. The stock price
oscillates and is sorted, with very frequent ups and downs, and the short-term moving average also
forms a golden cross many times. Some of these golden crosses do not have trading significance, and
the gains of the other operable golden crosses are also very limited. In addition, in the oscillation, it is
impossible to distinguish which signals are true and which are false just by relying on the golden cross.
Depending on the time frame, the golden cross is divided into golden crosses between short-term
moving averages, and short-term moving averages, medium-term moving averages, and long-term
moving averages, golden crosses between medium-term moving averages and medium-term moving
averages, long-term moving averages, and golden crosses between long-term moving averages.Many
times, the golden cross is not a standalone buy signal, mainly for the following three reasons.

(1) The buy signal sent by the golden cross of the short-term moving average is more timely, but the
stability and reliability are poor. If it is in a downward trend or a sideways consolidation market, there
are too many false signals of the golden cross, and the signal is not valid. The problem of the
effectiveness of the strength is not unsolvable.

(2) Traders can determine the strength of the trend based on the historical K-lines, combine the
position of the consolidation, and then observe important supports, trend lines, technical charts, the
direction of the medium and long-term moving averages, etc. After studying and observing these, a
clear judgment can be made on the true and false and strength of the short-term moving average
golden cross signal.

(3) In my experience, if the long-term moving average is below and the direction is upward, and the
short-term moving average forms a golden cross, the buy signal is more reliable. If the long-term
moving average is above and the direction is downward, and the short-term moving average forms a
golden cross, it is often a small rebound, and the signal sent by the moving average is not
worthy of trust.

As shown in the following figure, it is the daily trend chart of HDFCLIFE from May to October 2019.
When the stock price is oscillating and consolidating, the medium and long-term moving averages
continue to rise to form a bullish arrangement. Almost every time the short-term moving average
golden cross is formed when the stock price falls back and rises again after being supported by the 60-
day moving average. After we buy based on the golden cross, as long as the direction of the medium
and long-term moving averages remains upward, our positions are safe.
Now India is in a bull market, we only need to consider the golden cross trading with the long-term
moving average angle upward, and the buy signal of such a golden cross is very meaningful. The
moving average is a branch of the trend. As long as the trend is upward, we can use the power of the
market to make profits. Dear friends, that's all for tonight's sharing. See you in the
trading time tomorrow!