Scalping Strategy | 5 EMA Game Changer Setup | Trading in Share Market

Summary

This video tutorial introduces a scalping strategy called '5EMA', a technique designed to maximize profits with minimal risk. The presenter explains the logic behind the strategy, emphasizing the importance of price deviation from the 5-minute exponential moving average (EMA). The video offers detailed instructions on entry and exit points, stop loss, and target settings for both buying and selling in the market, highlighting the strategy's effectiveness in capturing significant market movements and trend reversals.

Takeaways

• 📈 The video introduces a scalping strategy called '5EMA', which is claimed to be a game changer for trading with significant profits.
• 🔢 The '5EMA' refers to a 5-minute Exponential Moving Average, which is used to identify trading opportunities based on price deviations.
• ⏱ The strategy involves using a 5-minute time frame for selling trades and a 15-minute time frame for buying trades.
• 📊 For selling, the entry point is when a candle closes above the 5EMA without touching the low of the previous candle for 5 minutes.
• 📌 The stop loss (SL) is set at the high of the same candle, and the minimum target for profit is a 1:3 risk-to-reward ratio.
• 📉 For buying, the strategy is similar but reversed; the candle should close below the 5EMA and not touch the high of the previous candle for 15 minutes.
• 💡 The presenter emphasizes the importance of understanding the logic behind the 5EMA strategy before applying it to trading.
• 📚 The video suggests that traders should take notes and watch the video multiple times to fully grasp the concept.
• 🚫 The strategy has a rule of not exceeding three stop losses in a single day to manage risk effectively.
• 📈 The presenter highlights that the 5EMA strategy can capture significant market movements, including trend reversals and rallies.
• 💰 The video also mentions that the strategy can be applied to stock trading, especially in liquid stocks with news-driven price gaps.
• 📉 It is suggested that traders should be prepared to capitalize on market crashes, as significant profits can be made with the right setup and small stop losses.

Q & A

What is the main topic of the video?

The main topic of the video is a trading strategy called '5EMA' for scalping in the financial markets, which is claimed to be a game changer setup by Mr. Subashish.

What does '5EMA' stand for in the context of the video?

'5EMA' stands for '5 Exponential Moving Average', which is a technical indicator used in the described trading strategy.

What is the significance of the 5-minute time frame in the 5EMA strategy?

The 5-minute time frame is significant for the selling strategy within the 5EMA setup, where trades are planned based on this time frame.

How does the 5EMA strategy define an 'alert candle'?

An 'alert candle' in the 5EMA strategy is defined as a candle that closes above the 5EMA without its low touching the 5EMA, serving as a potential signal for a trade.

What is the minimum risk-to-reward ratio suggested for the 5EMA trades?

The minimum risk-to-reward ratio suggested for the 5EMA trades is 1:3, meaning for every unit of risk, the trader aims to make three units of profit.

What is the difference between the selling and buying setup in the 5EMA strategy?

In the 5EMA strategy, the selling setup uses a 5-minute time frame and looks for candles closing above the 5EMA without touching the low, while the buying setup uses a 15-minute time frame and looks for candles closing below the 5EMA without touching the high.

What is the recommended action when the stop loss (SL) is hit frequently?

When the stop loss is hit frequently, the recommendation is to reassess the trade and consider re-entering up to 3 times a day, but if 3 SLs are hit, the trader should close the position for the day.

How does the video suggest managing trades when the market is trending?

The video suggests using a trailing stop loss to manage trades during a trend, adjusting it according to the market movement to lock in profits and minimize losses.

What is the role of news in the context of the 5EMA strategy when applied to stocks?

News can create gaps in the market, which may not be sustainable. The 5EMA strategy can be used to trade on these gaps, especially in liquid stocks, to potentially capture large profits if the market reverses after the news.

How can the 5EMA strategy be adapted for trading in stocks?

The 5EMA strategy can be adapted for stocks by focusing on liquid stocks and considering news events that may cause significant price deviations, providing potential trading opportunities.

What is the importance of managing risk in the 5EMA strategy?

Managing risk is crucial in the 5EMA strategy to ensure that potential losses are limited and do not outweigh the potential profits, maintaining a minimum risk-to-reward ratio of 1:3.