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

Pushkar Raj Thakur: Stock Market Educator πŸ“ˆ
22 Sept 202219:40

Summary

TLDRThis 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

  • πŸ“ˆ The video introduces a scalping strategy called '5EMA', which is claimed to be a game changer for trading with significant profits.
  • πŸ”’ 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.
  • πŸ“Š For selling, the entry point is when a candle closes above the 5EMA without touching the low of the previous candle for 5 minutes.
  • πŸ“Œ 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.
  • πŸ“‰ 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.
  • πŸ’‘ The presenter emphasizes the importance of understanding the logic behind the 5EMA strategy before applying it to trading.
  • πŸ“š 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.
  • πŸ“ˆ The presenter highlights that the 5EMA strategy can capture significant market movements, including trend reversals and rallies.
  • πŸ’° The video also mentions that the strategy can be applied to stock trading, especially in liquid stocks with news-driven price gaps.
  • πŸ“‰ 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.

Outlines

00:00

πŸ“ˆ Introduction to the 5EMA Scalping Strategy

The video script begins with an introduction to a scalping strategy called 5EMA, which the presenter claims is a game changer for trading. The 5EMA is explained as an exponential moving average that operates on a 5-minute time frame and is used to identify trading opportunities based on the price's deviation from the indicator. The presenter emphasizes the importance of understanding the logic behind the strategy before applying it to the chart. The setup involves looking for candles that close above the 5EMA without touching the low of the previous candle, which serves as an alert for a potential trade. The entry point is determined when the low is broken, with the stop loss set at the high of the alert candle and a minimum target of 1:3 profit-to-risk ratio.

05:03

πŸ“Š Demonstrating the 5EMA Strategy with Chart Examples

In this paragraph, the presenter illustrates the application of the 5EMA strategy using chart examples. The focus is on identifying 'alert candles' that close above the 5EMA without touching the low of the previous candle. The presenter clarifies that these alert candles are not confirmations but signals to watch for potential trades. The entry point is when the low of the alert candle is broken, and the stop loss is set at the high of the same candle. The presenter also discusses the importance of managing risk with a minimum 1:3 profit-to-risk ratio and emphasizes that the strategy can capture significant market movements, including trend reversals and pullbacks.

10:06

πŸ›‘ Addressing Stop Loss and the Roller Coaster Trend in Trading

The presenter addresses the frequent hitting of stop loss (SL) in the 5EMA strategy and reassures viewers that despite this, the target remains profitable. The market's trend is likened to a roller coaster, indicating that traders can capture significant highs in the market. The buying setup is introduced with a 15-minute time frame, with the strategy being similar but with some changes to the selling setup. The presenter advises on managing trades with a stop loss and re-entering the market, with a rule of not exceeding three stop losses in a day. The discussion also includes how to handle profits and the importance of not missing opportunities in both buying and selling markets.

15:08

πŸ“‰ Combining Buying and Selling Strategies for Maximized Profits

The final paragraph discusses the flexibility of executing both buying and selling trades based on the 5EMA strategy. The presenter suggests that traders can plan for both sides of the market and emphasizes the potential for significant profits with the right setup. The strategy is also applicable to stock trading, with a focus on liquidity and the impact of news on stock prices. The presenter shares insights on trading during news events and the potential for large profits, especially in stocks with high liquidity. The video concludes with a reminder of the importance of managing risk and the potential rewards of the 5EMA scalping strategy.

Mindmap

Keywords

πŸ’‘Scalping

Scalping is a trading strategy that focuses on making small profits from the bid-ask spread of a security. It involves making numerous trades within short time frames, typically within a single trading day. In the video, scalping is presented as a technique that, when combined with the 5EMA strategy, can lead to significant profits despite the small price movements targeted.

πŸ’‘5EMA

5EMA stands for 5-period Exponential Moving Average, a technical indicator used in trading to analyze price trends by smoothing out price data over a specific time frame. The video emphasizes the 5EMA as a 'game changer setup' for scalping, suggesting that it can be used to identify profitable entry and exit points in the market.

πŸ’‘Mean Reversion

Mean reversion is a theory in finance that suggests that asset prices will tend to revert to their historical average or mean over time. In the context of the video, mean reversion is the basis for the 5EMA scalping strategy, where trades are taken advantage of the deviations of price from the 5EMA, expecting it to revert to the indicator.

πŸ’‘Candlestick

A candlestick is a graphical representation of an asset's price range over a specified period, typically used in financial charts to show the open, high, low, and close prices. The video discusses the importance of candlestick patterns in relation to the 5EMA, using them as signals for potential trades.

πŸ’‘Stop Loss (SL)

A stop loss is an order placed with a broker to sell a security when it reaches a certain price, aiming to limit an investor's loss on a position. In the video, the presenter explains how to set the stop loss based on the high of the alert candle, which is crucial for managing risk in scalping trades.

πŸ’‘Risk-Reward Ratio

The risk-reward ratio is a measure used in trading to determine the potential risk of a trade against its potential reward. The video emphasizes a minimum risk-reward ratio of 1:3 for the 5EMA scalping strategy, meaning for every unit of risk, the potential reward should be three times greater.

πŸ’‘Trend Change

Trend change refers to a shift from one market trend to another, such as from a bullish to a bearish trend. The video mentions that the 5EMA scalping strategy is particularly effective at capturing trend changes, which can lead to larger profits.

πŸ’‘Alert Candle

In the context of the video, an alert candle is a specific candlestick pattern that meets the criteria of the 5EMA scalping strategy, signaling a potential trading opportunity. The presenter uses the term to describe candles that close above or below the 5EMA without touching the previous low or high.

πŸ’‘Liquidity

Liquidity in finance refers to the ease with which an asset can be bought or sold in the market without affecting its price. The video mentions the importance of liquidity when applying the 5EMA scalping strategy to stocks, as it ensures there is enough market activity to execute trades smoothly.

πŸ’‘News Impact

News impact refers to the effect that new information can have on the price of a security. The video discusses how news can lead to price gaps and volatility, presenting opportunities for traders to use the 5EMA scalping strategy to capitalize on these movements.

πŸ’‘Intraday Trading

Intraday trading is the practice of buying and selling securities within the same trading day, aiming to profit from short-term price fluctuations. The 5EMA scalping strategy is presented as a tool for intraday traders to identify high-probability trade setups.

Highlights

Introduction of a scalping strategy called 5EMA, claimed to be a game changer setup by Mr. Subashish.

Explanation of the 5EMA concept as an exponential moving average that works along with the price.

The importance of the 5-minute time frame for observing price action and the 5EMA relationship.

Description of the mean reversion and price deviation as key elements for trading opportunities.

Detailed setup instructions for identifying entry points in the 5EMA scalping strategy.

Rule for selling: the candle should close above the 5EMA without touching the low of the previous candle.

Risk-reward ratio of at least 1:3 when executing trades according to the 5EMA strategy.

Emphasis on the high accuracy of trend reversal predictions using the 5EMA setup.

Visual demonstration of the 5EMA strategy on charts for better understanding.

Differentiation between selling and buying setups with distinct time frames and conditions.

Guidance on managing stop losses to maximize profits and minimize risks.

Advice on not exceeding three stop losses in a day to maintain a balanced trading approach.

Discussion on the application of the 5EMA strategy in stock trading, emphasizing liquidity and news impact.

Highlighting the potential for significant profits in stock trading using the 5EMA strategy, especially with news-driven movements.

Encouragement for traders to take advantage of both buying and selling opportunities presented by the 5EMA strategy.

Final remarks on the importance of understanding and applying the 5EMA strategy for significant trading profits.

Transcripts

play00:00

So hello everyone, welcome back to our channel. As you guys demanded

play00:05

that you need a video

play00:07

on scalping. Today in this video, not only you are going to learn

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a small secret or a

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small strategy on scalping. According to Mr. Subashish, this

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is a game changer setup.

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You will use it like scalping but the profits will be huge. So

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without wasting any second,

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let's start with today's game changer setup. So let's start.

play00:28

So this setup is called 5EMA. You won't get it anywhere. Even

play00:32

if you get it, you will

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get it from somewhere through me. So first thing, I will explain

play00:37

the concept.

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First understand the logic, then we will see the setup in the

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chart.

play00:41

Today's day has given a very good profit. We will see tomorrow's

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day also.

play00:45

It is a very good setup. Let's start the video. I will teach

play00:48

you from the logic.

play00:49

First thing, generally what happens is, the name of this setup

play00:52

is 5EMA.

play00:53

Many people know 5EMA as exponential moving average.

play00:59

See, there is SMA and exponential. This works a little.

play01:04

So generally what happens is, keep in mind one point. When I

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am telling 5EMA,

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many people must be knowing that 5EMA will work along with the

play01:11

price.

play01:12

What setup will be available in it? Correct? So what happens

play01:15

is,

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If I ask you a question, the price is around 5EMA. Do you know

play01:22

why?

play01:23

Because in the last 5 candles, we will have the same time frame.

play01:27

It won't be difficult for you. We have to see it in the 5 minute

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time frame.

play01:31

I will tell you the concept in the setup. So why does this work?

play01:35

First thing, it follows the price. Maximum candle touches 5EMA.

play01:41

But there is a time when the price goes up or down.

play01:48

That means there is a deviation in the price and indicator.

play01:53

So there are two things. Either the indicator will come to the

play01:55

price or the price will go to the indicator.

play01:58

In both the cases, we will have a mean reversion and a stretch

play02:02

where we can get money.

play02:04

Imagine, an indicator was running like this and a candle is made

play02:08

here.

play02:09

That means either it will go there or it will go down as a negative.

play02:13

Price will come down to follow the mean because its ratio is

play02:16

like this.

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It will run along with the candle. So we are going to trade in

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this deviation.

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This is our concept. Now I will tell you the setup in detail.

play02:25

Everyone write in the copy and paste because this will be very

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useful to you.

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How does the screen clear?

play02:33

Now we will see the time frame. We will have a 5-minute time

play02:41

frame for selling.

play02:43

For selling, you can sort CE, future and you can buy PE.

play02:53

For these three things, your time frame will be the same. I hope

play02:56

you understood this point.

play02:58

We will do selling. Whether it is CE, future or PE, the time

play03:01

frame will be 5 minutes.

play03:03

This is your strategy to short.

play03:07

Both are there. But for selling, we will use 5 minutes and for

play03:11

buying, 15 minutes.

play03:12

So for now, we learn the selling concept. In 5 minutes, we will

play03:16

plan for selling.

play03:17

We will talk about both. How to buy and how to sell.

play03:20

But for selling, 5 minutes.

play03:22

So it's been 5 minutes. As the concept name is 5 PM, we have

play03:26

to put it in 5 PM.

play03:28

We have to put a normal candlestick pattern.

play03:34

These two things are clear. After that, how will the entry be?

play03:37

The entry will be simple.

play03:40

The color doesn't matter.

play03:42

The candle should be closed above 5 minutes and the same candle

play03:49

should not be touched.

play03:52

That means the previous candle should not be touched for 5 minutes.

play03:56

This is my condition.

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The color of the candle can be green or red. It doesn't matter.

play04:01

But it should be closed above 5 PM and the same candle should

play04:05

not be touched.

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When you see the graph, you will understand.

play04:09

Write the rule. The candle should be closed above 5 minutes.

play04:12

That means the low should not be touched.

play04:14

The candle that does not touch the low will be an alert candle.

play04:17

It's not a confirmation. It's an alert candle.

play04:20

If this low breaks, we will trade.

play04:23

Going forward, imagine there are two conditions.

play04:25

Either another candle is made above and there is no break in

play04:28

the low.

play04:29

If there is another candle above, that means it is again an alert

play04:32

candle.

play04:33

Because the low of this candle has not been touched yet.

play04:35

So this is also an alert candle.

play04:37

If we follow the same, from where it breaks, we will take the

play04:41

trade.

play04:42

The same candle high will be our SL.

play04:44

It will be the last swing or the same candle high will be our

play04:46

SL.

play04:47

And our entry is done.

play04:49

According to the stop loss, your minimum target is 1 is to 3.

play04:53

I am not even telling 1 is to 2. Your target will be minimum

play04:56

1 is to 3.

play04:57

Because we are talking about trend change.

play05:00

If you follow this candle like this,

play05:03

you can never miss a 90% or more trend reversal.

play05:09

Like today, there was a reversal in the upper market.

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It was not missed. Yesterday, there was a rally of 1000 points.

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All these will never be missed. These are the setups.

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So this is the rule of entry.

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Now we go to the charts.

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It will be easy for people to understand.

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After seeing the charts, you will understand.

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In fact, if you don't understand anything,

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this video is available for free on YouTube.

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Watch as much as you want.

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Make notes. You will understand the whole concept.

play05:30

Let's repeat it again. First, we put it in this.

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This is the average. This is the simple moving average.

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I do it in this.

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And as I said the average period is 5.

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So I plotted it here.

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I change the color of this a little.

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You can do this easily in your Demat account,

play05:48

whichever is with your broker.

play05:51

So you can see the exponential moving average in the indicators.

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Correct. So I am changing the color so that you can see it on

play05:56

the screen.

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I am making it black.

play05:59

So this is the only condition.

play06:01

So I have plotted 5 PMA here.

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The line you see here is the line of 5 PMA.

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As we were talking, the candle should be closed on it.

play06:10

And the same candle should not be low-touching 5 PMA.

play06:13

In this case, it is a 5-minute chart.

play06:15

You can see 5 PMA here.

play06:17

We are lucky.

play06:18

If we see the first candle, it has given a closing on 5 PMA.

play06:22

But it is low-touching.

play06:23

That means it is not our alert candle.

play06:25

If we see the second candle, it has given a closing on 5 PMA.

play06:30

And its low is not touching 5 PMA.

play06:33

This is our alert candle.

play06:35

I am saying alert candle because as I was saying,

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a candle is made on 5 PMA and it is not low-touching.

play06:40

But chances are the next candle is also made and its low is not

play06:43

touching.

play06:44

We have to go to the next candle because we are seeing the price

play06:46

deviation.

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We are getting a good entry and the market is going up.

play06:50

We will follow it.

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If you see here, near the top,

play06:55

is the low of this candle touching 5 PMA?

play06:58

The answer is no.

play06:59

Has it closed above 5 PMA?

play07:02

Yes, it has closed.

play07:03

And this is our alert candle for now.

play07:06

Correct?

play07:07

If you hold it, another candle would have been made above.

play07:10

So our alert candle is low.

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Because our alert candle is being made until the low is not broken.

play07:15

That means this alert candle is made.

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The time it will break the candle, we will immediately take a

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trade.

play07:20

Correct?

play07:21

In this case, our entry will be somewhere around this candle.

play07:28

1, 2, 3, 4.

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Entry on the fourth candle.

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The low of the third candle, we will keep as an entry price.

play07:35

Our SL will be here.

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Higher than the previous candle.

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Correct.

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That means the day high will be our SL on the same day.

play07:41

Day high.

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Day high in the sense, swing.

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What will happen?

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Generally, if we have got something here, we cannot keep the

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day high SL.

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We can keep the high SL of the same alert candle.

play07:50

Correct?

play07:51

If you hold this, the bank gift is 30-40 rupees SL, then we can

play07:54

keep.

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If we are getting SL of 10 rupees, then we will see the nearest,

play07:58

we can keep the minimum of 30-40 rupees SL.

play08:00

So in this case, it happened here.

play08:01

And the minimum you have to see is the target of 1 is to 3.

play08:04

Your SL here, entry here, SL here.

play08:06

Its 1 is to 3 is somewhere around this level.

play08:09

But it has been found 1 is to 4 or 5 and it is still continuing,

play08:12

it is going sideways.

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Correct?

play08:14

This is one trade.

play08:15

I hope you understood this point.

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Now I am telling you what is your accuracy.

play08:19

If nothing is there, then accuracy is 60-70%.

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Why I am not saying much, let's imagine it is 55% or 50% also.

play08:26

It is still very good because the minimum risk to reward you

play08:29

have to maintain 1 is to 3.

play08:31

Minimum.

play08:32

If it is big, then it is found.

play08:33

Because whenever the trend has to change, you get it.

play08:36

And after this, if you see on today's date, SL is a little hit.

play08:39

Because my SL design is that even if I take the market frequently,

play08:42

but I need a bigger target.

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So that I can stay in the market.

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If you see here, this was a trade which was profitable.

play08:50

Imagine it is missed.

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After that we will find a little more.

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And if you see here, all the candles are touching here.

play08:57

Here we got 1 candle where it is not touching.

play09:00

If you see the same, candle to candle, 1 is to 1 profit is also

play09:03

found here, according to scalping.

play09:05

But we need minimum 1 is to 3.

play09:07

So here 1 SL is found.

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And you cannot compare this SL and this profit.

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This is almost a small candle of 10 or 20 rupees.

play09:14

After that, if we go further, you have found 1 SL at this level.

play09:18

And here 1 is to 2 is also found.

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So on today's date, 3 trades are found.

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Almost 1 is to 2.

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On today's date, you got 3 trades here.

play09:27

2 of the 3 trades were profitable.

play09:29

And 1 SL was found, which is very fine.

play09:31

But you will never miss the trend of the downside.

play09:34

Because what happens, whenever the trend is given in the downside,

play09:36

imagine how the trend works.

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The market goes down, a pullback comes from somewhere.

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Whenever the pullback comes, it will reverse, you will get entry

play09:43

here.

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So this is the concept, trend will not be missed by the selling

play09:47

side.

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And the traders who miss the selling side, they do not earn a

play09:50

lot of money.

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Because in selling, there is a very fast move.

play09:53

Correct.

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So for that, we will not miss the selling market in this concept.

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I hope this point is clear to you.

play10:02

I am clear and people have understood the concept of selling.

play10:06

We can move towards buying.

play10:08

There is only one point, SL hits frequently. 240 0:10:09,000 --> 0:10:02,000 If you have any doubt, you can ask.

play10:11

Keep this point in mind.

play10:12

But you are looking at the target.

play10:13

Don't worry about it.

play10:14

But if you are sorting something at all time high or high, then

play10:19

it is a different profit.

play10:21

This trend is always around the high of the market.

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Imagine the market is going up and the trend is changing from

play10:26

the top.

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Here it is giving you a trade.

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Definitely.

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Whenever you want to capture high, you will get this point.

play10:35

And if you capture high, then the profits are huge.

play10:37

The name is good.

play10:38

Roller coaster trend.

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You can say.

play10:40

It is becoming a roller coaster.

play10:42

Correct.

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So, let's do one thing.

play10:44

The buying setup is the same for 15 minutes.

play10:47

Let's talk about buying.

play10:49

Let's talk about it.

play10:50

Let's go.

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So, let me change the time frame first.

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I want to tell you that the market was a strong rally yesterday.

play11:00

Why am I telling you?

play11:01

Because you should understand the concept of both sides.

play11:03

First thing, if we see where we got the trade, it is around 5

play11:06

PM.

play11:07

We got a trade here.

play11:08

It is a purely SL trade.

play11:10

Because we got a trade here.

play11:12

After that, we didn't get a trade here.

play11:14

We got a trade at this level.

play11:16

It is a SL.

play11:17

But if you notice one point, SL is a single candle.

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It is a 30-40 rupee SL.

play11:22

We didn't get a trade here.

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We got a trade somewhere around here.

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And according to this, we got 1 is to 3.

play11:27

It is around 600 to 300.

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300 points.

play11:30

And here we have given 30-40 rupees.

play11:33

Now, in the trend, because the market went to 1200-1500 points,

play11:36

still we have a profit in the trade.

play11:39

Correct.

play11:40

So, we have to write a rule.

play11:41

But you have to go out on SL.

play11:42

We have to go out on SL.

play11:43

Because what is happening is that the price is going up.

play11:46

We are waiting for the trend change.

play11:48

If you don't take out the SL here,

play11:50

then the profit will be stuck here.

play11:52

It is useless.

play11:53

So, we will keep re-entering.

play11:54

And how many times we have to re-enter?

play11:56

Not more than 3 times a day.

play11:57

Because our rickshaw board is 3 times.

play11:59

So, this is it.

play12:00

If 3 SLs are sold in a day, then you close it.

play12:02

Next day.

play12:03

If 3 SLs are sold, then you will get a big profit next day.

play12:06

Why?

play12:07

Because today the market has gone up continuously.

play12:08

SL is sold.

play12:09

Today or tomorrow it will go around.

play12:11

If this trend goes around 50%, 10%, 20%,

play12:15

still you are going to sell at the top.

play12:17

In a little price deviation.

play12:18

So, profits are huge.

play12:19

This is our setup for selling in 5-minute charts.

play12:23

Now we go to the buying setup in 15 minutes.

play12:26

Let's change the time here.

play12:31

15 minutes.

play12:32

Correct.

play12:33

Now you must be thinking that you missed the buying market of

play12:36

yesterday.

play12:37

Don't worry about it.

play12:38

There are all things.

play12:39

Because what is the buying market generally?

play12:41

The buying market is a little slow.

play12:43

Everyone knows this.

play12:44

It is slow.

play12:45

There is volatility.

play12:46

For this, I have changed the time frame and kept it 15 minutes.

play12:49

The concept remains the same.

play12:51

There are some changes.

play12:52

The time frame will be 15 minutes.

play12:54

The AMA will be in 5 PM.

play12:56

And what you have to do is,

play12:57

Like its closing was going up.

play13:00

In 5 PM, you have to close it below the candle.

play13:03

It is running in 5 PM.

play13:04

The candle should be closed below it.

play13:06

And its high should not be touched in 5 PM.

play13:09

That's the rule.

play13:10

Its high should not be touched above 5 minute AMA.

play13:13

Closing should be below it.

play13:14

What was happening on the selling side?

play13:15

It was closing above and its low was not being touched.

play13:18

Here, the high should not be touched.

play13:22

And the closing should be below it.

play13:23

In this case, you can see that the first 15 minute candle of

play13:26

yesterday is open below it.

play13:28

It is not touching high in 5 PM.

play13:30

That means it is an alert candle for us.

play13:32

Correct?

play13:33

Has it crossed the next candle?

play13:35

Yes, it has crossed.

play13:36

It is an entry for us.

play13:37

You may be asking that the stop loss is very big.

play13:40

110% stop loss is big.

play13:42

So what you can do is,

play13:43

You can put a stop loss around the candle which has broken.

play13:46

Because, as I said, if the stop loss is 100-200 points,

play13:50

We have to bring it in 40-50 rupees because we have to earn a

play13:52

profit of 100-200 rupees.

play13:53

Minimum.

play13:54

Correct?

play13:55

I have understood this.

play13:56

If the candle is small,

play13:57

We will put a stop loss below it.

play13:59

And you can see the target.

play14:01

You have got the target continuously up to here.

play14:03

There is no second entry.

play14:05

And from here,

play14:06

From 40,600 to 41,400,

play14:09

It will be of 5800 points.

play14:10

Will we trail here or what?

play14:11

Because we have not talked about the SL yet.

play14:13

Correct.

play14:14

Our minimum target is 1 is to 3.

play14:16

So after 3, we can book a partial profit and leave.

play14:18

We can leave or we can trail.

play14:20

But trail becomes a little subjective.

play14:22

Some people do parallel trail.

play14:24

If 1 is to 1 comes,

play14:25

We will bring it on cost.

play14:26

If 1 is to 2 comes,

play14:27

We will bring it on 1 is to 1.

play14:28

But what I do is,

play14:29

I take it candle wise.

play14:30

Like this market went up.

play14:32

It is breaking from here.

play14:33

This much of candle is made green.

play14:35

Where should I take it?

play14:37

At least, if there is a price action of this kind,

play14:40

I should take it here.

play14:41

I understand.

play14:42

But when the trend is clear,

play14:43

Why should I take it here?

play14:44

There is no point here.

play14:45

Where should I take it?

play14:46

Like we bought here today.

play14:48

And we got profit till here.

play14:50

So where should I take it?

play14:51

Correct.

play14:52

So till the trend is going on,

play14:53

We have to follow.

play14:54

But you will learn this.

play14:55

Don't worry about it.

play14:56

How will the profit come?

play14:57

If more,

play14:58

See, the first point is,

play14:59

We should get profit.

play15:00

Profit is coming.

play15:01

How will it come more?

play15:02

You will learn that.

play15:03

By trailing slowly.

play15:04

So we got 1 is to 3.

play15:06

You understand this point.

play15:08

Some people must be having doubts.

play15:09

Sir,

play15:10

If our buying trade is executed,

play15:13

Can we execute the sale?

play15:14

It completely depends on you.

play15:16

Because here you have to take 3 trades.

play15:18

Here 3 trades,

play15:19

So total 6 trades will be there.

play15:20

If you want to take this much,

play15:21

Then you can do.

play15:22

But you don't get this much trade.

play15:23

Don't worry about it.

play15:24

You will hardly get 3 or 4 trades.

play15:26

You can plan the buying side as well as the selling side.

play15:28

This is best for those people,

play15:29

Who by default think of themselves as a buyer or a seller.

play15:32

That I want to buy in the market.

play15:35

So you won't miss this.

play15:36

You have to sell,

play15:37

You won't miss this.

play15:38

You can play around a little.

play15:39

If you are using one quantity for buying,

play15:42

You can use two quantities for this.

play15:43

Because in selling,

play15:44

You get a little fast profit.

play15:45

That is interesting.

play15:46

So you can play around a little.

play15:47

But you get a good profit with both.

play15:50

In this previous case also,

play15:51

The market has not gone anywhere.

play15:53

But we have activated selling somewhere here.

play15:55

It went sideways in the whole day.

play15:57

And if you see today,

play15:58

According to 15 minutes,

play16:00

Your trade has been executed somewhere here.

play16:02

Don't you think?

play16:03

The market has reversed a little from here.

play16:05

At least it is above this.

play16:06

We have sold at the top,

play16:08

And bought at the bottom.

play16:09

What could be better than this?

play16:11

So this is very good for those people,

play16:14

Who plan for big profits.

play16:16

They wait a little when the setup is made.

play16:18

And for big profits.

play16:19

And if you use this for a month,

play16:22

Then only you will come to know that

play16:23

Targets are very huge.

play16:24

It can be in stop loss too.

play16:25

One or two frequent hits.

play16:26

But you won't even be afraid to pay 30-40 rupees for stop loss.

play16:29

So you have the same.

play16:30

If you want to buy an option,

play16:32

You can go to ATM here.

play16:34

If you know how to properly manage the ASL,

play16:37

Then you can go to the ATM.

play16:39

Similar case of short also.

play16:41

If you want to sell the option,

play16:43

Then definitely,

play16:44

Imagine if you want to sell the option here,

play16:46

Then you can sell at 41,800 or at the money,

play16:49

Or slightly above the ATM.

play16:52

But the targets remain the same.

play16:53

If there is a future,

play16:54

Then we will sell in net to net.

play16:56

So let's go to another important point.

play16:58

Those who like to trade in stocks,

play17:00

This setup works very well there too.

play17:02

But you have to learn some nuggets.

play17:04

I will tell you in some important points.

play17:06

Because what happens is,

play17:07

There are only two indexes in which we trade.

play17:09

If there are many stocks in the stock,

play17:11

Then people go a little wrong.

play17:13

Because there is no liquidity in every stock.

play17:15

There is no intraday trade in every stock.

play17:16

First thing,

play17:17

We have to take care of liquidity.

play17:19

Like Maruti is made here.

play17:20

We will trade here.

play17:21

You got the turnaround here.

play17:23

You got the turnaround in 1 is to 2 or 1 is to 3.

play17:25

But what will work better than this?

play17:27

Keep one point in mind.

play17:29

New goes in stocks.

play17:31

Correct.

play17:32

Whenever news comes,

play17:34

Sometimes the market opens a gap up.

play17:36

News comes and suddenly it goes up and comes down.

play17:38

Why does this happen?

play17:39

Because the news was not sustainable.

play17:41

Or people have already bought from the previous time.

play17:44

After the news comes,

play17:45

There is no opportunity for buying.

play17:47

Here we buy a return.

play17:48

And then it gets stuck.

play17:50

Then you get a very good trade from here.

play17:52

That means,

play17:53

If you have got some news in the liquidity stock,

play17:56

And the gap has opened there.

play17:58

We can try it once or twice.

play18:00

If you have tried it once,

play18:01

If it didn't work, then it's okay.

play18:02

But if it works,

play18:03

It will give you a killing money.

play18:05

You can get a big profit.

play18:06

If I show you an example,

play18:07

Because we can't go back after 30 days.

play18:09

Why can't we go?

play18:11

Because it has a limitation.

play18:13

You remember HDFC bank and HDFC.

play18:15

Almost 2-3 days ago,

play18:17

There was a news of it.

play18:19

You will remember this.

play18:21

See the candle length.

play18:23

If you see in the daily candle,

play18:25

It has given you a big profit in positional.

play18:27

If you close it,

play18:29

It has become an alert candle.

play18:30

If you close it,

play18:31

If you trade below it,

play18:32

It has given you a big profit.

play18:33

But the same thing has happened in intraday.

play18:35

Why has it happened in intraday?

play18:36

Because the price deviation is 100%.

play18:38

You must have sorted it at this level in intraday.

play18:41

So this money you cannot compare with 3 or 4 stop loss.

play18:44

We will let it go.

play18:46

Because many people make mistakes.

play18:48

If you are saying that the market will crash today,

play18:50

You are correct.

play18:51

If not today, then tomorrow the market will crash.

play18:53

But what have we done?

play18:55

If the market will crash,

play18:56

Then it should come in my portfolio.

play18:58

I am giving small stop loss and following it.

play19:00

I should catch the crash.

play19:02

100%

play19:03

Because the money you can make in crash is very huge.

play19:06

Especially for the trader, not for the investor.

play19:08

Investors wait for long term rally.

play19:10

In short term,

play19:12

You cannot wait for this much money in selling.

play19:14

You cannot wait for this much money in buying.

play19:16

You have to do pure investing.

play19:18

But you should not miss this money.

play19:20

What you did not miss here,

play19:22

You will get many examples here,

play19:24

Which give a very good profit.

play19:25

I hope you understood this point.

play19:27

If there is a news stock,

play19:29

And if there is no profit in the stock,

play19:31

If there is news, then it will go up.

play19:33

Then it will be dumped.

play19:34

Then it will run better.

play19:35

This point was an additional point.

play19:37

Thank you for watching.

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