📘 Logic & Formulas

1) Weighted Average (after averaging)

New Average = (P₁ × U₁ + P₂ × U₂) ÷ (U₁ + U₂)

• P₁ = Old Buy Price, U₁ = Old Units
• P₂ = Current Price, U₂ = New Units
• For lots: U = Lots × 75 (Nifty), 35 (Bank Nifty), 20 (Sensex)

2) Behavior of the average

• If P₂ < P₁, averaging down pulls the new average towards P₂.
• If P₂ > P₁, averaging up pushes the new average towards P₂.
• The average approaches P₂ as you add more units, but only equals P₂ when P₁ = P₂.

3) Lots needed to reach a target average (optional)

U₂ = ((T − P₁) × U₁) ÷ (P₂ − T), then Lots = ceil(U₂ ÷ lot size)