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.