Super Trend Intraday Trading Strategy for Commodity Day Trading

Summary

In this informative video, Indrajit Pukharji from stockmaniacs.net introduces a trading strategy utilizing the 200-period moving average in intraday charts, combined with the Super Trend indicator. He demonstrates how to identify bullish or bearish stocks and commodities like crude oil and gold, explaining the setup and entry/exit rules. The strategy aims to filter out false signals and maximize profits in trending markets, with examples provided for clarity. Viewers are encouraged to subscribe for upcoming live trading sessions.

Takeaways

• 📈 The video teaches how to use the 200-period moving average to identify stock trends and determine if they are bullish or bearish.
• 📊 The presenter introduces a new technique for using the 200-period moving average in intraday trading, alongside the Super Trend indicator.
• 🤑 The method is applicable to commodities, equities, and futures, with the potential to generate significant profits.
• 👋 The presenter, Indrajit Pukharji, offers introductions and contact information for further queries and subscription to his channel.
• 💻 It's assumed that viewers have a trading terminal ready, with a recommendation to use Zerodha's Kite platform for those who don't.
• 📊 The script provides a detailed guide on setting up the 200-period exponential moving average on a trading chart.
• 📉 The importance of aligning multiple moving averages (50, 100, and 200 periods) to determine the market trend is emphasized.
• 🚫 The video warns against trading when moving averages are not aligned, as it may indicate a whipsaw or false signal.
• 📌 Entry and exit points for trades are determined by the Super Trend indicator, contingent upon the alignment of moving averages.
• 💡 The script illustrates how to filter out false signals using the combination of moving averages and the Super Trend indicator.
• 📝 Stop loss and target settings are recommended based on the Super Trend indicator, suggesting a smaller stop loss and a larger target for better risk-reward ratios.

Q & A

What is the main focus of the video script?

The video script focuses on teaching viewers how to use the 200-period moving average, particularly the exponential version, in conjunction with the super trend indicator for trading in the intraday market, specifically for commodities, equities, and futures.

Who is the presenter of the video?

The presenter of the video is Indrajit Pukharji from stockmaniacs.net.

What is the significance of the 200-period moving average in the video?

The 200-period moving average is used as a key technical indicator to identify the trend direction of a stock or commodity. In the video, it is used in the intraday charts with exponential calculation instead of the simple moving average used in daily charts.

What other moving averages are used alongside the 200-period moving average in the trading system presented?

Along with the 200-period moving average, the trading system also uses 100-period and 50-period exponential moving averages to confirm the trend direction.

How does the super trend indicator work in the context of this trading system?

The super trend indicator is used to generate entry and exit signals for trades. It is used in conjunction with the alignment of the moving averages to confirm the validity of a trading signal.

What is the recommended time frame for applying this trading system?

The trading system is demonstrated using a five-minute chart, but it is also mentioned that it works well on a 15-minute time frame.

How can viewers get the trading terminal mentioned in the video?

Viewers can get the trading terminal, which is referred to as 'Zero the Kite', through a link provided in the video description.

What is the strategy for determining entry and exit points in the trading system?

Entry and exit points are determined based on the alignment of the moving averages and signals from the super trend indicator. For a buy position, the 50-period MA should be above the 100-period MA, which in turn should be above the 200-period MA. For a short sale, the opposite is required, with all moving averages aligned on the downside.

How are stop losses and targets set in this trading system?

Stop losses are set based on the high or low of the super trend indicator, depending on whether a short sale or a buy signal is made. Targets are typically double the amount of the stop loss.

What commodities and indices are suggested for using this trading system?

The video suggests using this trading system for major commodities like gold and crude oil, as well as indices such as Nifty and Bank Nifty.

What is the next video release about and when is it scheduled?

The next video will be about live trading on the expiry day in Nifty options and it is scheduled for release on the following Tuesday at 5:30 PM.

Outlines

00:00

📊 Introduction to 200-Day Moving Average in Intraday Trading

The speaker, Indrajit Pukharji from stockmaniacs.net, introduces the concept of using the 200-day moving average for intraday trading, along with the super trend indicator. He explains that this technique can be applied to commodities, equities, and futures to identify profitable trading opportunities. The video is aimed at helping viewers grow their wealth in the stock and commodity markets. The speaker invites viewers to subscribe, turn on notifications, and reach out via WhatsApp for stock market queries. He also provides a link to the trading terminal 'Zerodha Kite' for those who do not have one.

05:02

📈 Setting Up the Trading System with Moving Averages and Super Trend

The speaker demonstrates how to set up a trading system using the 200-period exponential moving average (EMA), along with 100 and 50-period EMAs, and a super trend indicator on a five-minute chart. He emphasizes the importance of having all moving averages aligned to indicate the market trend. The speaker outlines the entry and exit rules based on the super trend indicator and the alignment of the moving averages, providing examples of valid and invalid trade signals to avoid whipsaws.

10:03

🚀 Profiting from the Trading System with Stop Loss and Target Strategies

The speaker illustrates how to maximize profits using the trading system by setting stop losses and targets based on the super trend indicator. He explains that the stop loss should be placed at the high or low of the super trend, depending on the trade direction, and the target should be double the stop loss. The speaker provides examples of profitable trades in commodities like crude oil and gold, as well as in indices like Bank Nifty, highlighting the system's effectiveness in filtering out false signals and capturing large profits in trending markets.

15:03

📅 Upcoming Live Trading Session and Conclusion

The speaker announces an upcoming live trading session on the next Tuesday at 5:30 PM, where he will demonstrate trading on the expiry day in Nifty options. He encourages viewers to subscribe to his channel and be present for the live session. The speaker concludes the webinar by inviting viewers to like, share, and comment on the video with any queries, promising to respond promptly. He thanks the audience for watching and expresses his hope that they found the information beneficial.

Keywords

💡200-day moving average

The 200-day moving average is a technical analysis tool used to identify the long-term trend of a stock or commodity. It is calculated by taking the average closing price of a security over the past 200 days. In the video, the presenter explains how using the 200-day moving average can quickly determine if a stock is in a bullish (rising) or bearish (falling) trend, and also how it can be applied to intraday trading strategies.

💡Trend

In trading, a trend refers to the general direction in which prices are moving. It can be upward (bullish), downward (bearish), or sideways (no clear direction). The video script emphasizes the importance of identifying trends using the 200-day moving average to make informed trading decisions.

💡Intraday

Intraday trading involves buying and selling financial instruments within the same trading day. The video discusses the application of the 200-day moving average in intraday trading, which is a short-term trading strategy focusing on capturing gains within a single trading session.

💡Super Trend

The Super Trend is a technical indicator designed to filter out noise and identify the prevailing trend direction. It is used in the video to complement the 200-day moving average, providing entry and exit signals for trades based on whether the price is above or below the moving averages.

💡Exponential Moving Average (EMA)

An Exponential Moving Average gives more weight to recent prices, making it more responsive to new information than a simple moving average. In the script, the presenter uses a 200-period EMA for intraday trading instead of the traditional 200-day simple moving average to capture faster market movements.

💡Stop Loss

A stop loss is an order placed with a broker to sell a security when it reaches a certain price. It is designed to limit an investor's loss on a position. The video explains how to set stop losses based on the Super Trend indicator to manage risk effectively during trades.

💡Target

In trading, a target is the price at which a trader expects to sell a security to realize a profit. The video script illustrates how to set targets as double the stop loss amount, aiming for a favorable risk-reward ratio in trades.

💡Whipsaw

A whipsaw in trading refers to a series of fakeouts or false signals that cause a trader to enter and exit a position repeatedly, resulting in losses. The video discusses how the combination of moving averages and the Super Trend can filter out whipsaws and provide more reliable trading signals.

💡Risk-Reward Ratio

The risk-reward ratio is a comparison of the potential risk of a trade to the potential profit. A favorable risk-reward ratio means that the potential profit outweighs the potential loss. The video emphasizes setting smaller stop losses and larger targets to achieve a good risk-reward ratio in trading.

💡Nifty and Bank Nifty

Nifty and Bank Nifty are stock market indices representing a basket of stocks traded on the National Stock Exchange of India. They are used as examples in the video to demonstrate the versatility of the trading strategy discussed, which can be applied to various financial instruments, including indices.

💡Live Trading

Live trading refers to executing trades in real-time market conditions. The video script mentions an upcoming live trading session on the expiry day in Nifty options, indicating the presenter's intention to demonstrate the trading strategy in a real market environment.

Highlights

Introduction of using the 200-day moving average to identify stock trends.

Announcement of a new video on applying the 200 moving average in intraday trading.

Indrajit Pukharji introduces himself and his website, stockmaniacs.net.

Instructions on subscribing for wealth growth in stock and commodity markets.

Mention of a trading terminal setup and a link to Zerodha Kite in the video description.

Explanation of trading using the 200 period moving average on a five-minute chart.

Differentiation between using a simple moving average on daily charts and an exponential moving average for intraday.

Demonstration of setting up the 200 period exponential moving average on a chart.

Use of additional moving averages (100 and 50 periods) alongside the 200 period for trend analysis.

Introduction of the Super Trend indicator for entry and exit points in trading.

Criteria for a valid buy position based on the alignment of moving averages and Super Trend signals.

Strategy for short selling when moving averages are aligned on the downside and Super Trend signals are received.

Illustration of filtering out false signals and capturing profits in strong trends.

Method for setting stop loss and target based on Super Trend levels.

Application of the trading system to various commodities like gold and indices like Bank Nifty.

Emphasis on the effectiveness of the system with smaller stop losses and bigger targets for long-term profits.

Upcoming live trading session announcement for the next video release.

Invitation for viewers to share their observations and queries in the comments.

Closing remarks and thanks for watching the webinar.

Transcripts

so hello my dear friends

in my last video i have shown you how

you can use the 200-day moving average

and you can identify the trend

in just few minutes you can identify

which stock is bullish or which stock is

bearish

and in the last video itself i have told

you that i am going to release a new

video

and this video will use the technique of

200 moving average in the intraday

so in this video i am going to show you

how you can use the 200 period moving

average

along with super trend and you can find

very nice commodities to trade you can

trade this technique using the

commodities and you can use this in

intraday

and you can see that you can generate

huge amount of profits from the

commodity markets

and why only commodities even this works

in equities and futures

so i will show you how you can use the

200 period moving average even in

intraday and you can find serious

profits using the super trend indicator

but before that let me give you a short

intro of mine

hello friends i am indrajit pukharji

from stockmaniacs.net

if you want to grow your wealth from the

stock and commodity markets

hit the subscribe button

and hit the bell notification icon

you can also send me your stock market

related queries through whatsapp in my

number plus nine one nine six seven four

three two one eight five six

so friends

i believe that you are already having a

trading terminal in front of you if you

do not have

you can get through the kite in just few

clicks i'll give you the link of the

zero the kite in my video description so

from there you can get zero the kite so

now let's go to the zeruda kite chart

where i explain how you can trade using

the 200 period moving average even on

intraday and using a simple setting of

super trend so friends this is

the zero the kite chart this is crude

oil march future and this is five

minutes chart

so this system works well on five

minutes as well as on 15 minutes so i'll

show you the examples on five minutes

time frame

so as i have told you we will add the

200 period moving average

so here instead of 200 period simple

moving average in my last video we have

used the 200 day simple moving average

on the daily charts but here instead of

200 period simple moving average we will

use the 200 period exponential moving

average so let me show you the setup

so we will go to the studies section in

the studies section we will go to the

moving average

so here is the moving average

we will add a 200 period moving average

so 200

field will be closed and type will be

exponential

so friends let us color it

we will color it as

pink

click on done

so this is your 200 period moving

average

now my dear friends if you just unzoom

the chart

you can see

you can identify the trend very well you

can see here the price has actually

crossed below the 200 period moving

average

200 period exponential moving average

here it tried to test the exponential

moving average once again it has failed

once again it came back

tested came back tested

came back tested and then there was a

huge fall

now we will use it in a trading system

we will create a trading system from

this kind of things and we will use two

other moving averages as well as we will

use a super trend

so let us add

the two other moving averages

so click on moving average

add a hundred period moving average

similarly field is closed and type is

exponential

and we will also color it

we will color it as blue

click on done

so you can see your 100 period and 200

period moving average is set on the

charts

now my dear friends will add another

moving average

go to studies section

same moving average

and take a 50 period

exponential moving average

and

let us color it as green

click on done so my dear friends you can

see your moving average combination is

set

so the moving average combination you

can see all the

moving averages are going in line in the

same line here actually all the moving

averages crossed each other so 50 period

moving average is below the 100 period

moving average and 100 period moving

average is below the 200 period moving

average so we can say that the trend is

down

so here actually the trend became down

now how we will enter

this is the simple setup now we will

enter and exit based on a super trend

indicator

so go to the studies section

add a super trend indicator

go to super trend

here is the super trend

add the super trend indicator

so my dear friends now you can see there

are four indicators on the chart

there are three moving averages and one

super trend now how we will

enter or exit

we will enter or exit based on the super

trend

let us zoom the chart

the first rule

all the moving averages should be in

line

that means for a buy position

the 50 period moving average should be

above the 100 period moving average

and the 100 period moving average should

be above the 200 period moving average

so that is as per the buy position

and we will enter on the basis of super

trend

we will enter whenever a buy comes in

the super trend chart and the price

close should be above the moving

averages and

the

moving averages should be also

all in line

suppose the 100 period moving average is

above the 200 period moving average but

the 50 period moving average is below

the 100 period moving average so in that

case the moving averages are suggesting

a whipsaw so in that case you need to

avoid trading

and for the short sale

for the short sale all the moving

averages should be in line on the

downside

so 50 period moving average should be

below 100 period moving average and 100

period moving average should be below

200 period moving average

now the close should also be below the

moving averages

price close should be below all the

moving averages and you should get a

short sell signal in super trend

so here you got the short sell signal so

you can see after that you have got a

decent fall

so here around

three four three five level you have got

a short sell signal and from there

it has made low two three three six zero

so at least two three three six zero so

we have got a

75 points rally

once again here you can see

all the moving averages are in line

price is below all the moving averages

and you have got a sell signal in super

trend

so here you need to short and here you

have got a signal around 3360 level

so from there you have seen

the price

has moved down to three to three zero so

you have got around 130 points rally

on your favor

once again you have got a short sell

signal

so you can see you can sell here around

three two one two from there the market

has made a low to three one four two

so three one four two three one four

zero level

so you have got a 70 points rally once

again here

and you can see

if you follow this technique super trend

has given many whip sauce in between

you have got a whip saw here

you have got a fix saw here you have got

another whip so here

but all these whipsaws are actually

filtered out so if you trade just only

on the basis of super trend

you will buy here sell here he will once

again buy here sell here he will once

again buy here he will sell here but if

we follow only the strategy we will sell

here

this is the loser

we will sell here this is the winner we

will sell here this is the winner we

will sell here this is once again a

winner

if we go back to the previous chart

you can see

here actually the short has not

triggered because price

is not below all the moving averages now

we will see a buy example

let us go back you can see here

this is not a buy signal because

though you have got a signal on super

trend but price is still below the

moving averages

here actually we have got a super trend

signal but you can see

the moving averages are not in line

so the 50 period moving average was not

above the 200 period moving average or

the 100 period moving average

so you have got a secured buy signal

here

this sale is not valid because price

is above all the moving averages and

moving averages are on the upwards

direction

so you need to avoid this cell signal

once again you can got a buy signal here

and this buy signal is a valid buy

signal because you can see all the

moving averages are in line you have got

a buy signal on super trade

so just you can buy here and you can see

you have got a signal around three four

line zero level and

you have got a rally up to

three five seven five

so three four nine five two three five

seven five so 80 points rally you have

got

so you understood how you can sell or

buy

suppose here this is once again your

sell signal because you can see moving

averages are all in line and you have

got a sell signal on super trend so you

have got a short sale signal around

three to nine five level and from there

you have got a fall till three two zero

seven or three two zero five so you have

got a 90 points fall

so my dear friends you have seen that

this system is quite powerful it

actually filters out many false signals

and whenever in strong trend it will

give you large amount of profits now

where to keep stop loss or where to keep

targets

so the stop loss is very simple

you need to just follow the super trend

stop loss

suppose i'll show you suppose here if

you are short selling

the super trend high will be your stop

loss so simple if you are short selling

over here 3 2 6 0 level the super trend

high

suppose

three three eight four or eight five so

25 points is your stop loss

and you can actually take a target

of double double of your stop loss

so you can go for a 50 points target and

a 25 point stop loss

once again

if you short sell over here

this super trend top will be your stop

loss

and you can keep a target of double of

that

so

you can simple go with the stop loss and

target

if you have short sales here

you need to keep a stop loss over here

because this is your super trade top

and you need to

take a target double up this stop loss

so you can see here the target has been

made here also the target has been met

and here you can either carry forward

for the next day because i do not find

that the target has been made because

here the stop loss was quite high so the

target double of the stop loss has not

been met so either you can carry forward

for next day or you can exit

at the end of day

so you can trade like this

similar like buy signals

so i'll show you here

let us go to a valid buy signal this is

a valid buy signal so you know to keep a

stop loss over here because that is your

super trend bottom

so you need to

keep the stop loss in the super trade

bottom and you need to keep

two times target of your stop loss so

if this amount is your stop loss from

here to here

the closing price is here and this is

the stop loss so this is your stop loss

so target will be double of this so you

can see double of stop loss this target

has been achieved so this system is

pretty powerful

and if you can follow this system

you can achieve profits over long term

now my dear friends as you can see you

are keeping a smaller stop loss and the

bigger target

you can

achieve a good amount of wealth over the

time

so your risk is less and your reward is

more

so this is the system how it works on

the commodity markets we have shown the

crude oil example

now i will go to gold mini

so same five minutes time frame chart

you can see you have got a buy signal

over here

so your stop loss is here

because that is the super trend bottom

here is the buy signal this is the stop

loss and target is double of the stop

loss you can see well it has achieved

so this is the power of this system

this system will work on all major

commodities major commodities means i'll

suggest you to trade

gold and crude oil with this strategy

you can trade nifty or bank nifty also

with this strategy

so go to bank nifty

valid sell signal

stop loss

target is double of the stop loss

achieved

valid cell signal

stop loss

target is double of that achieved

so this way this system works

this was a stop-loss hit situation you

can also see this

valid cell signal but this signal has

not performed that well

but as you are trading with a smaller

stop loss and bigger targets so these

small losses will be taken care by the

bigger targets

so this system works on all major

indices

all major stocks and

all major commodities and i'll suggest

to trade

crude oil and gold with this you can

also test your own settings of moving

averages or super trend and you can send

me your observations through the

comments in this video so friends i have

shown you how you can use the 200 period

moving average even on the intraday

charts

and you have also seen how you can use a

combination of moving averages along

with super trend to make a deadly

trading system

this system can pull out profits from

the commodity markets as well as from

the equity and futures market

so in my next video i am going to

release the next video on next tuesday

sharp at 5 30 pm

so make sure you be there because there

i am going to show you live trading

yes my dear friends live trading on the

expiry day in nifty options

so make sure that you subscribe to my

channel and be there on my next video

that will be live in the air on next

tuesday at 5 30 pm so friends i have

completed today's webinar

if you like today's video please do not

forget to hit the like button please

also do not forget to share it with your

friends because if you share it someone

else can also be benefited if you have

any queries just ask me in the comments

i'll try to answer you as early as

possible friends thanks a lot for

watching this webinar till the end

bye