Triple SMA Strategy Explained | Find High-Probability Trades Like a Pro

Good evening, friends. Uh let's start with the the day four of the moving average classes now. Uh in the first two classes we had discussed about how the moving average was calculated, which moving average is good, which moving average is to be used in which condition. In case you have not seen that videos, please go back on the YouTube channel and see it. The simple funda is now that we all need to make money in the stock market. And the more we follow a set principles, set uh laws, and rules, we will make more money. Along with it, protection of the capital is the most important strategy. Today we are going to discuss what is known as SMA crossover strategy. In the previous two lectures, I had shown why SMA is used for long-term investment or in big swing trades. SMA is the slowest to react to any of the uh to the price, uh while EMA is faster and Hull is the fastest. But today we will be only discussing the SMA crossover strategy. The lengths of the SMA we are going to use are 200. This is the gold standard for the institution, followed by 100, and 20. Now we want the SMA to be aligned as 20 is greater than 100, greater than 200. Since in TradingView, we are only allowed to put in one indicator two indicators in a free version, so I will tell you the indicator to be used where we can plot just by using a single indicator all three moving averages. The option or the source for this SMA can be your close or low. I will show you how it is applied. And then we only want to see that this should be the alignment. And the last step is creating a charting screener. Okay? So, this is what we are going to discuss today. It's going to be a short class or short video. You should see completely if you want to understand the concept. I'm just going to place it here. These are the four things you are going to use. Now, we are going to use what is known as triple moving averages. This is by a Valley Bond. And once you plot it, it will show you lines like this. Now, we'll go and just change what we want. Now, let me take off all the drawings. So, we will open this indicator. So, the first length is 50. We'll convert it to 20. The source is close. I usually take it on low. And now I'm going to do it. So, what is going to happen is I want to have a green signal when I want to buy it. So, I'm just going to make this line little broad green. Yellow line, or you can say my orange line is going to be my stop-loss line. And this blue line, or you can say red line, is going to be my main deciding trend factor. That if the price is below this, I'm not going to take bullish trading any form I'm going to take it. Now, let's see any stock which has given us a good rate. Okay, we have opened up Maruti. Let's go and see only Maruti now for a minute. The rules are absolutely clear. The green should have crossed over the orange line. And the orange should be above the red line, which is the 200 moving average. Now, this is the way place where the crossover has actually happened. This is the point. This is the point. So, what I'm going to do is I'm going to place a green line, a horizontal line, above this. So, whenever my price crosses over it, that is I'm seeing it on the daily time frame. Whenever my price cross over above it, above the green line, I'm going to take an entry. I'm not going to take entry like here. When it crosses the high, there should be a close. It should not be a kind of just a week and you take the trade. No, it has to close above it. And I will ride the trend till it doesn't cross below the 100 moving average. So, 20 is the shorter form, and the 100 is the point where I'm going to stop. And so, my stop-loss is always the close below the 100 moving average. Now let's see what happened in these cases. So how much return did we make into it? This is the point where it we enter and this is the point we exited. Approximately 22.68 uh percent over period of approximately 5 to 6 months. It has started somewhere around about August 2025 and we exited somewhere around about Jan 26. So maybe 5 or 6 months we were into the trade. Remember one golden rule is till these moving average don't align in a proper way. Now SMA 20 is not greater than 100, it's not and 100 is not greater than 200. The stock or the underlying instrument will not show a bullish bias. It may go up temporarily but will come down. It may go up, it may come down. Once the the sequence is good then this are in the proper sequence, it will fly like anything. Now let's check the most flying stock or the the you can say the the stock which dominates the Indian market in the aviation sector is. Even though it's going up this will not sustain much, it will come down out here is. Now let's go and check where did it cross. This is the point it crossed. Now let's see how much we made. You may make good money, you may make not very good money. This is the candle where it crossed. And this This horizontal line where I'm going to place it. So, moment it crossed up, that is the very next day, I took the trade. And I'm riding it till it doesn't cross below the orange line, which is here. So, even though I didn't make much profit, but I was not in a loss-making condition. So, I exited somewhere around here. Still 5.4% the amount. Let's go and see any other stock. Let's say we check TVS Motors. Now, the next step is how we are going to make a screener for it. So, in TVS Motors, we had a crossover happening. Here, this is the proper alignment of the the moving averages. So, 20 had come up, but 100 was below 200. So, I will place a horizontal line out here as and the very next day, we entered the trade somewhere around about 2,900 odd rupees. And let's see where did we exit. We exited somewhere around about here. Again, a 26.8% return. So, the alignment of moving average has to be proper for a good ride. Now, here you can see green is below the orange is coming below the red. So, this even though it has shown me 129, this is not an indication to go in because if I want to ride a trend. Now, let's go and start making a indicator. So, I'm going to delete everything. And I'm going to delete this thing as So, this is a basic I will show it from the start. You go to screens, create a screen. So, we are going to press here is the plus sign, we are going to write SMA. Crossed over again SMA, I will show you how we change the length. So, this is daily and close, but we are using low. So, we will change it to low. And this also to low. And we will change this to 100. So, 20 SMA crossing over the 100 SMA. So, we are doing the first step now. So, you get so many stocks. Lot of stocks. So, now we will go to and we'll just copy this and paste it here. Now, we want 100 should be greater than 200. We don't want the crossover here. We want it to only to be it should be above 200. We are just going to place it and convert this length to 200. Now, you're on the scan. You have only one stock that is Titan coming in today. So, let's go and check Titan. Is it showing us that buys? Uh I'm very sorry, this is very slow. These days TradingView is slow or maybe my internet connection is slow. Now, you see today Titan has given a crossover up here. Yes. The green has moved over the orange line and the red is on the lower side. So, above the high of this, I will just place my line. Now, if on Monday Titan closes above here. So, my moving averages are in line with it. And then I'm going to take the trade. Whichever form you want to take it. Now, same way let's see when the Titan gave the moving averages came in line is and the last time it had given is it is somewhere out here is. So, let me place a line out here. So, we got entry somewhere around this point is. This is in November. 30th hundred. And we exited close to that price only. Mind it, we exited the day the war started in Iran. That is where there was a volatility which come and this came down. Even though the trade didn't give us much return, but it did not give us a loss also. So, this is how you can trade. You can always try to find good trades for yourself. And you can avoid some wrong trades or emotion-based trade. Now, this is what Polycab was I think so one of the very good trades so it had once given. Now, Polycab came as a crossover out here is. That was a high. We had an entry at 8241. And even if now it is there is not been an exit, let's calculate the return is is already 16% and the max it had given was 22%. So, it's a very simple way of taking the trades. And that is how you can make money. Here, it was a loss-making trade. I'm not denying this fact is it will be everything is not green. This was the indication. This was the entry point, but it closed down here is. [clears throat] So, there was a loss. We can't do anything. In stock market, profit and losses are part and parcel of the game. But the last time it gave this way is from here till here again was a not a very big profitable trade. It was on the losing side, but the another one big trade is you are still into the trade and you are riding into it. People are saying buy CDSL. We were also buy. We bought it on the price action way, but you can see the 200 moving average is quite above it. And from where it got rejected, where it was a 200 simple moving average. So, the green has started moving up. Once green, red, and orange comes in in alignment, it is correct sequence, then it will fly. You can see MCX also. MCX had a very good run. And our entry is somewhere around about here is the crossover. All three in the proper form is. No, we actually had a proper form out here is. 1,209 rupees. Green, orange, and red. Now, this is 1209 and let's say this was our point. So, we entered out here is 1244 and we are still into the trade. We are not exiting the trade. So, 200 is catching up. If it closes below it is an exit, otherwise we are riding into the trade. So, this was the simple strategy. The indicator name I will again put it. It is very simple. Triple moving average. And the author is Murali Bapu. And the screener creation, I will share it in the groups with you. Thank you everybody. Have a safe weekend and enjoy Have a very lovely and enjoyable weekend. See you next week. Thank you everybody.