EMA 9 and Stochastic Intraday Entry and Exit Strategy

Hello everyone, welcome to today's session in Quantsapp. Being an intraday trader, it is very important to time your entry, because of the very fast movement that you can face in intraday that can convert your profit into loss, and you can miss many opportunities as well. So in this video we will be talking about certain indicators that will help you out to time your entry flawlessly in your trading. So let's start the video. But before starting the video, if you are new here, you can go in the description; there is a link below. With the help of that you can download and install the Quantsapp application. After successful registration you will get some free tools in the application that will help you out in your trading. In the application we have a separate video library as well. So in the video library we have made certain videos that will help you out in your trading, okay? So these videos are based on Pro Plus tools as well as on various strategies, so in your meantime you can go and watch these videos. At any point of time, if you guys are having any kind of doubts or queries, you can contact us. You have to go here in the support, so you will get our contact number as well as email ID, so you can contact us and we will be there to sort your queries out. So let's start today's lesson without wasting any time. So today we will be talking about intraday trading, and intraday trading, when we are talking about it, we will be using certain time frames, okay?

So we will be using certain time frames here, and these time frames can be of 1 minute, okay, it can be of 3 minutes, it can be 5 minutes, okay, and it can be 15 minutes, right? So if you are a scalper, okay, if you do scalping, you can choose the time frame of 1 minute and 3 minutes as well, okay. If you are a day trader who likes to hold the trade for like 1 hour to 2 hours, okay, then you can go with 5 minutes to 15 minutes as well, right? But the strategy that I'll be telling you today, okay, it will cover all of these time frames, okay; you can apply that strategy in these time frames, okay. Now, the indicators that we will be using here: the first one, we will be using an EMA, that is exponential moving average. So when we are talking about EMA, that is exponential moving average, it accounts the moving average of the last few days, right, and in that it gives more weightage to, you can say, the recent price, right? So that is your exponential moving average. The other indicator that we will be using, that is your stochastic, that is your stochastic. Now, what does the stochastic actually do? It will tell you if the market is overbought, okay, so if the market is overbought or if the market is

oversold, right, if the market is oversold. So we will be using these two indicators to time our entry when we are trading in intraday, right? Okay, now I'll tell you certain settings of these two indicators. So first, in this strategy, when we will be using the EMA, that is your exponential moving average, okay, calculating the average price of the last few days, okay, so in that we will be using the 9 exponential moving average. So it means we are calculating the average price of the last 9 candles, and in that we are giving more weightage to the recent candle, right? So we will be using the exponential moving average of 9. Along with that we will be using stochastic. So when we apply the stochastics in our chart, in that you will see there will be two lines, okay? So these two lines will be a K% okay, and then a D%, right? So the K% will be shown in blue colour, okay, that is a default setting, so it will be shown in the blue colour in the chart. And similarly, when you go with the D%, it will be shown with an orange colour, or it can be yellow as well, right? Now, what are this K% and D% actually in the, you can say, in the stochastic? So when we are talking about a stochastic now, it is a momentum oscillator, you can say it is a momentum oscillator, so it will oscillate

between certain levels, for example from 0 to 100, right? It will never go above 100 or below 0, right? So it will always oscillate between these two, right? Now when it is oscillating, it will tell me if the market is overbought or if the market is oversold, right? So there will be certain default settings in the stochastic, for example 80 to 20, so 80 to 20. So what is the theory behind these levels? Whenever my stochastics, or you can say the momentum indicator, okay, in stochastics, if it goes above 80, it means the market is overbought now, and when it goes below 20, it means the market is currently oversold, okay. And the K% and the D%: so when we are talking about the K%, it takes account of, you can say, the high and low of the last 14 days, okay, because we take the setting of 14 in stochastics, right? So the K% is the highest and lowest, you can say the oscillation of the market or candles, right, of the last 14 candles, okay. So that is your K%, right? Now when we are talking about D%, so D% is the average of, it is the average of the last three candles of K%, right? So when we are talking about K%, it is taking its value from the last

14 candles, from the high and low, okay, from the oscillation. And similarly, the K% is deriving its value from the K%, okay, so it is calculating the average from the last three candles of K%, right? So you can say the D% is dependent on K%. So you will notice, whenever we use the stochastics, in simple terms, okay, I'll tell you, so you will notice the K% line, the value of this, okay, or the line of K%, it will be, you can say, faster than the D%. So suppose this is my K% line, okay, so there will be a line something like this, okay, this will be my D%, right? So whenever my K% will break, this will break this D% in the downward direction, it means now the market has the capability that it will go in the downward direction. And whenever the K% line will break the D% in the upward direction, it is going in the upward, so it means now the market will be in the upward direction, okay? So I hope it is clear. It can be a little confusing, but we will be clearing it with a practical example as well, okay. So for that, let's directly go to the Quantsapp application here. Okay, so in the Quantsapp application you have to go in Analyse, then Charts, Trade and Order. And in Charts, Trade and Order, let's apply the index here, because in index we can see there

is, you can say, a good momentum also, okay. So we will be applying our strategy in that. So I am opening Nifty here, okay, so let's open Nifty, Nifty, okay. Along with Nifty I will apply those two indicators. So first let me remove the remaining indicators, then we will go here in the indicators, and the first thing we will type, that is EMA, our exponential moving average. So you can see the exponential moving average of 9, okay. Now the other indicator, that is your stochastic, so let's type stochastic here, okay. So you can see stochastics, and I'll apply it here as well, okay. Now there are certain settings that I have to do in the stochastic as well. So what I will do, I will go here in the settings, and you can see, for the upper limit I will just change it to 70, okay, for the upper limit. So you also have to change the upper limit to 70. For the lower limit you have to change it to 30, okay, so for the lower limit I will change it to 30. Then I want to hide the background, so I will also disable it, okay. And then you can see the blue line is denoted with the blue colour; the D% line will be denoted with the orange or yellow colour, green colour, okay, it can be anything.

Okay, then let's see how we will take the trade with the help of this. So the concept behind this strategy is: first, the time frame should be of intraday. So currently I will show this strategy in the 5 minute; you can apply it in 1 minute as well, you can apply this strategy in 3 minutes as well, okay. Now first of all, there is the first condition, okay. So the first thing that you have to take care of is that, the first condition would be, first of all, I want the crossover of, I want the crossover, crossover of what? Crossover of K% and D%, okay, the crossover of this in stochastics. So this is my stochastics. So what I want: if I'm going for the bullish trade, so if I'm going for the bullish trade, I want my K%, I want my K%, okay, it should be breaking D% in the upper direction, right, somehow like this. So if this is my D, the K should be breaking it like this, okay, so it should be intersecting it or breaking it in the upward direction, okay, somehow like this, okay. So that will be the condition for the bullish one. Similarly, if I'm going for the bearish direction, if I'm going for a bearish trade, at that time, if this is the D line, my K should be breaking it something like this, okay. So these are the two conditions that I have to look

for, okay, in stochastics. So let's see where I am getting those two conditions. So let me zoom out, zoom in the chart a little bit. So you can see, first of all, I got a condition here, okay, I got a condition here as well. So you can see my blue line was actually crossing my orange line, okay. So at that time, whenever this condition happens, then I have to wait for the market, okay, then I have to wait for the candle to close above this, to close above my EMA 9, okay. And whenever I get that reading, that will be my entry point, okay. So let's see where we are getting our entry here. So here you can see my K and D gave me a crossover in stochastic; it means my first condition has been fulfilled. Now I have to wait for my candle, okay; it's supposed to be a green candle, and it should be closing above the exponential moving average 9, okay. So these are the two conditions. So you can see the EMA gave me a crossover here, okay, and then I can see the very next candle here, that is the candle of 21 November, 10:20, so it gave me a closing above EMA 9, okay, EMA 9, it gave me a closing. So that is the candle that will be my entry point. So whenever my market will break the high of this candle, that would be my entry

point, okay. So then you can see this was my entry point, okay, and then my market went in the upward direction, okay. So I could be trading in 5 minutes, I could be trading in 1 minute; that will give me a very good movement with this strategy, right? Let's see some other example in the current market as well, okay. So currently my market is trending here, so you can see currently my market is trending here. Now I can see again it gave me a crossover here at this point of time. You can say here it gave me a crossover; my blue line actually moved above this one, this D line, okay. And then on the very next candle I got a candle which gave me a closing above the EMA 9, okay. So what would I have done? I just have to mark the high of this candle. So what is the high of that candle? That is 23,737. So when my market will break it, I will take the entry in the upward direction, okay. So this is how you have to take a trade with these two indicators, and your two conditions have to be fulfilled, and then you can take a trade in the time frame of one day, sorry, 1 minute, 3 minutes, 5 minutes and 15 minutes as well. Now you can see here this is a sideways market, okay. So actually we have to avoid any trade whenever the market is in sideways, but let's see how this

strategy gave us an indication in the sideways market as well, though. So the first one is here. So actually it gave me an indication here as well, because my blue line crossed below the green line, okay, the yellow line, and after that there was a red candle that gave me a breakout, okay, or that actually closed below, okay. And after that you can see there were certain candles, so for approximately 20 to 30 minutes my market moved in the bearish direction, okay. So if I were trading in the option, I could be getting like 10 to 15 points in this range, okay. So actually this strategy worked here in the sideways market as well, but the range, your profit range, will be a little less, right? Similarly, again let's see when again it gave me an indication. So you can see at this point of time it actually again gave me an indication that my K is closing, you can say it is crossing the D, okay. So at that time again I will wait for the candle to close below EMA. So you can see this was the candle, and after that again my four to five candles were in the bearish. So it is also working in the sideways market as well, but the range, the range of profit is a little less. So you should be going with 10 to 15 points if you're trading in Nifty in a sideways market with this strategy, right? So we were talking about the trending

market. So in the trending market I got a reading here; you can say my K line crosses below, it is crossing below the D line, okay, and after that, on the very next candle, it is a red candle that actually closed below EMA 9, and then you can see a good movement, okay, in the downward direction. Now there is a question: till when do I have to hold this trade, okay? If I'm in a trending market, till when do I have to hold this trade? So the answer is that if I am taking an entry on this candle, for example this is the candle of 19 November, 2 p.m., I have to hold this trade until my blue line actually moves above 80, okay. So that is when I have to exit from the trade if I'm in a trending market. So you can see my blue line was not crossing it, it was not going above 80, okay. So this is the line of 80, so it moved above 80 approximately at this point of time. So if I was making my entry here, I have to exit here at this point of time, right? So the market actually closed in between, okay. But if it was a day trade, okay, if you were trading intraday, you should be holding this trade till this time, when the blue line, or you can say the K line, will actually move above 80, right? So this is the period when you have to hold your trade with this

strategy, right? It is a very simple strategy that you have to use. It will work for the sideways market as well, it will work for the trending market as well, okay. The only difference is that it can give you a very good move when the market is trending, but if you are trading this strategy in the sideways market, the profit range will be a little less, right? And this will work for every time frame, if you are a scalper or if you are a day trader, so it will work for you, right? So I hope the concept is clear. I hope you got to know something good today. You can like the video, share it with your friends as well. Make sure to share your comment, to share your comment in the comment section. Thank you so much. If you're new, make sure to like the channel as well, subscribe to the channel as well. Thank you so much guys, this is your trainer, Ankit Singh Rawat. Have a good day.