RSI and Moving Average 15-Minute Contra Strategy

Hello guys, welcome to today's session in Quantsapp, and today I'll be talking about a strategy that you guys are looking for from a very long time. Today I'll be talking about how you can find the reversal in an intraday market. All right. Many of, many of you guys, they are trying to find the top and bottom of the market from where the market can reverse itself, but unable to do so. So guys, this video is for you. But before starting the video, if you're new here, you can go in the description; there is a link below, so you can download and install the web application of Quantsapp. After successful registration you will get 25 free tools here that you can use for your trading. Also, in the Video Library, in the Learn section we have Video Library. So in Video Library we have multiple videos on Pro Plus tools and various strategies, okay. So you can choose your preferable language also, right, and you can watch this video in your meantime. Right. Now, at any point of time, if you guys are having any kinds of doubts or query, so you can go in the profile section, and in the support we have our contact number and email ID, so you can reach out to us whenever you feel like. Right. Now, starting today's topic, okay. So today I'll be talking about the strategy that you guys want from a very long time, okay, and that is how to find the reversal in

the intraday market, and for that we will be talking about contra day. Right. Contra day trading. Right. Contra day trading. Now, what does this contra day mean? So basically, basically, the contra day is like, for example, there is a stock, okay, and the stock is in a bullish direction from a very long time, and you must have analyzed like this stock can give a very good movement in the long run. But in the intraday trading, when you are doing intraday, so you can see there is a bearish direction in this stock, okay. The stock is falling very rapidly, and there are multiple red candles that you can see in the chart of intraday, okay. Now I have to make an entry and I'll go for the buying, but I'll find the reversal. So how can I do that? So with the contra day, it means we are going against the intraday trend, and that is what we want. We will find the reversal of the market in intraday, right, in this stock. Right. So for that, what we will do: we will find the candle, and when the high of that candle will break, we will take the entry. But how to find this candle? How will we get to know that from this candle the trend will get reversed? So for that, let me take you to the chart, okay. So I'm opening the Quantsapp application here. In the

Analyze section you have to go on Charts, Trade and Order, okay. And now I will apply here RSI, that is a very familiar indicator, I know, okay. So that is the relative strength index. So from the indicators I'll search RSI here, okay. So relative strength index, okay. So here it is, relative strength index. I have applied it. Oh sorry, I have applied it two times, so let me remove it, okay. Now, there is one more setting that I have to do, but before that, do you know RSI? I have told you about RSI in multiple videos, right, so you can see those videos. I'll give you a brief. So RSI is basically a momentum oscillator, okay. So it will tell you about the momentum of your particular stock that you are looking for, okay, that you are analyzing. Right. And with the comparison of Nifty, you can say. Why? Because Nifty is the standard index, so that is why this RSI compares the strength of this stock that you are looking into, right, with the Nifty. So if my stock is going in the upward direction, it means, as compared to Nifty, the strength of this particular stock is increasing. Right. So that is what the RSI tells us, okay. Now, I'm not

going into that deep right now. In the RSI, I'll go in the settings, and in the settings I can see here there is Inputs, length, simple moving average. In this Style there is a smoothed moving average. Right. So I'll enable it, okay. And then you can see now there is a blue line that has been applied in your RSI, relative strength index. Right. Now, what is the significance of this line? So basically, when we are seeing this line, the RSI, the line of RSI, right, so this line is telling me the strength of the index, right, strength of the index, not index, but the stock in comparison to the index. Right. Okay. Now, the blue line is the moving average of the price, okay. Moving average of what? Moving average of the price, okay. Now, whenever, whenever my, this blue line, you can see here, whenever my, this blue line, it will go above this moving average, above this moving average price, this moving average is of the price, okay. So I can say, if the strength of my stock is greater than the price, the average price of the stock, that means this is the stock that can give me a good, good movement in my intraday trading. Right. Now we will apply it in

multiple time frames, and let me tell you the strategy. Right. Now, for the strategy, first of all you have to go here, okay, and you have to select a month time frame. All right. Now, you don't have to see the chart, just focus here. So when I have applied the monthly time frame, you can see here, in this stock, so I can see the strength of my, this stock is greater than my moving price. Right. It means this stock has more capability that it can go in the further, in the further bullish direction. Right. So I, I have analyzed it in the monthly time frame. Now I will apply it in the weekly time frame. Why am I doing so? To check the strength of the index, to check the overall trend of my particular stock. Right. So now I will apply it in daily time frame, sorry, in weekly time frame, okay. Now, in weekly time frame also I can see, you can see, the line of RSI is above my moving average price, okay. So I have analyzed it in month, then week, and now I'm going to analyze it in the day time frame, okay. So these are three things that you have to do. Right. Now I can see, in the day time frame also, my RSI, the line of RSI, is also above, is also above this one, this moving average price. Right. It means the

trend in this particular stock is very strong. It has the capability to go above in the near future. You can buy it for swing trading also, right, swing trading also, with other confirmation as you like. But we are right now trading for intraday, so what I'll do: now I will apply the time frame of 15 minutes here, okay. So this is the procedure that you have to follow. You have to follow all the steps that I have shown you. Right. Now, in 15 minute time frame I will analyze my chart. Now I don't have to do anything with this, okay. I don't have to analyze it with the 15 minute. I don't care if, if in 15 minutes it is above or below, I don't care. I have analyzed it in monthly time frame, in weekly time frame and daily time frame, okay. Now I will only analyze the chart. Now you can see in the chart, just wait, just wait, let me take the marker here, okay. Now I can see in the chart, right now, this stock, IEX, this stock IEX, currently this is in the long position. IEX, this is right now, it is in the long position. Right. Now, if it is right now in the long position, so what I, I can do, do: if at any point of time, you can see, there are multiple highs that are getting broken

here, okay. So if you have analyzed this stock before, right, yeah, you can say a little, a little before, so you must have made a good profit and you could have captured this movement, right, like I have done. Right. So this is how you can choose your stock. Now, what if there is a negative trend in some, in some particular stock, and you could, and you can, you know, find the reversal? Right. So that is what we will see next. Now, okay, so this, this was the stock, but right now it is above. Right now you can see it is already in a momentum; it already gave you a good momentum. I chose this stock when it was near, it was somewhere here, at this point. I'll tell you, it was around, not here, but at this point, okay. So I chose this stock when it was at 9:30, okay. So it broke its resistance, okay. There was a resistance here; let me show you properly, okay. So I chose the stock when it broke this resistance, this one, okay. So that was the time I made an entry in this stock with this strategy only. Right. Now I'll tell you some other examples also. Right. So I'll select here a stock that is Berger Paints, okay.

Berger Paints. Right. Now, first we will go with the procedure. First of all, with the monthly time frame. So in the month time frame I'll analyze it, so you, you can see my RSI is obviously greater than the moving average line. That is the first thing done, okay. Then I'll go with the weekly time frame. In the weekly time frame I can see clearly my RSI is also greater than my moving price. Second step also done. Then I'll go with the day time frame. In the day time frame I can see, right now here, in the Berger Paints, you can see my RSI is crossing below. So it means now my third condition has failed. So what I will do: I'll just wait for today's market, okay, or for tomorrow's market, if at any point of time. See, from the month and week we already got to know, like, it is in a good trend. Right. It can give me a good movement if I'll start my intraday position in this stock. But what will that time be? At what time in intraday should I make my entry? So for that you have to analyze this stock. Right now, in the current market, in the current day, right now it is, you know, the market is going on. So you can see right now the price has been falling, so that is why my RSI is below this moving average price. But at any point of time, okay, if this stock, if this candle, or you can say this RSI,

okay, it remains above, it remains above this moving average price, okay, in daily time frame, then you can apply here the 15-minute chart. Right. And you can see, in the 15-minute chart I can see there is a correction here. Just wait. In 15-minute time frame there is a correction here; you can see there is a correction here. Right. Now, at the point where my, in daily time frame, when my RSI will be greater than the moving average, then I'll again come to the 15-minute time frame, and what I'll do: I'll just look at the candle. For example, the candles are like this at the time, okay. So whenever, whenever my RSI will be greater than the moving average price in day time frame, then I'll come here and I'll mark the high of the previous candle, and whenever it will get broken, I'll make my, my entry, okay. So this will be my entry, okay. And what will be my stop-loss? I always tell you stop loss, right. So what will be my stop loss? The stop loss will be the low of that particular candle. All right. So what you have to do: you just have to wait for the daily time frame, whenever your RSI will be greater than the moving average price. Right. It means now your strength, your momentum of

this stock is greater than the average price that the stock always shows you. Right. So at the time, whenever it will happen, I'll come to the 15-minute time frame, I'll analyze the candle, okay. And, for example, right now this is the candle. So, for example, this is the candle when all your conditions are met. So what you can do: you can just wait for the high to get broken, and then you can make your entry. And I have already shown you what will be your stop loss and your entry. Now, for the risk-reward ratio, this strategy has a very good strike rate, okay. So what you can do: you can just go with the 1 is to 2 or 1 is to 3, 1 is to 2 or 1 is to 3 risk-reward ratio here, okay, risk-reward ratio here, okay. And you can follow this strategy for your multiple trades as well. Right. Now, this strategy has the capability that it can give you a good momentum also, like for 50 to 60 points also. Right. Now, what you have to do for that: if you want to, if you want to hold the trade for, you know, for 2, 3 hours also, for a good direction, for a good momentum, so what you can do, you can trail your stop loss. Right. Now, for the trailing stop-loss, I have shown you entry, stop-loss, risk-reward ratio; now how you can trail your stop-loss, that is the last thing that I'll tell you with this strategy, okay. That is

complimentary for you. Right. So you can trail your stop-loss with the five finger rule. I think you must have heard it for the first time, but there is a five finger rule that you can use for your trailing stop loss, if you are new here, okay. So what you can do: at any point of time, for any point of time, if you're taking entry in a particular stock, okay, let me show you how. So, for example, for example, you have taken your entry, right, you have taken your entry somewhere here, okay, you can say somewhere here, okay. Now, what you have to do here, just wait, let me zoom the chart so you can see clearly, okay, what I'm talking about. Okay. Now, suppose you have taken your entry at the breakout of this resistance level, okay, with any strategy. Right. Now, how to apply the five finger rule? Now, if this was my, if this was my target, so you can say my target has already been achieved. Right. My target has already been achieved. Now, how, how will I trail my stop loss? So for that you have to apply the five finger rule, five finger rule. I mean, you have to analyze five candles: 1, 2, 3, 4, 5. Right. 1, 2, 3, 4, 5. Now, out of these five candles, out of these five candles, if

I'll get any three candles red in color, so I will mark the low, the low of those candles, okay, or you can say the low of these five candles, whatever will be the lowest low, okay, and then I'll make it my stop loss, and I'll exit all my positions from there. For example, let me tell you in the application. I was trailing here, I was trailing here, okay, I was trailing here at this point. Now, in these five I got 1, 2, 3, 4, 5; there are five candles. Out of these five candles, out of these five candles, I got three red candles, okay. Let me clear it. You can see, let me zoom it a little, okay. Now you can see clearly. Right. So you can see these five candles I'm talking about. So out of 1, 2, 3, 4, 5, okay, I got two red candles. Right. Now, after 15 minutes, I'll count, I'll count 1, 2, 3, 4, 5, okay. Now, in these five candles I got 1, 2, 3, three red candles I got, okay. So it means now the market has the capability that it can go down, so I'll mark the low, low of these five candles. So what is the lowest point? So that is the lowest point, okay. So I'll mark this as my stop loss, okay. I took the trade, I took the trade here, okay. Now

this is my trailing stop loss, this is my trailing stop loss. So if my market will break this point, I'll exit my position; all total, still I'll be in profit, okay. But you can see the market did not break this level and again went further, okay. Now, this is the point where I can again apply my five finger rule. So for that I'll see five candles continuously, so that is 1, 2, 3, 4, 5. Now, in these five candles again we got three red candles here, so I will again make the lowest point out of these five candles my trailing level. And you can see it did not break down. If it had broken down, so what would I have done? I could have taken an exit from this position. But you can again see the market went further upwards. Right. So this is how you can again trail your stop loss with the five finger rule. I hope the concept is very clear, okay. The concept is very clear. What I have done: I used RSI, I applied a moving average in RSI. Then I want to find the reversal in a market, in intraday, so for that I will apply multiple time frames, for example, like, month, week, daily time frame. After applying those, I will see if my

RSI is above the moving average or not. If it is, then apply the 15 minute time frame, okay, and whenever, in 15 minute time frame, the high of the candle, the current candle, will be broken out, will be broken out, that is my entry point. I hope the concept is very clear. If you're new, so you can also subscribe to the channel, and thank you so much for your time. I hope, thank you so much guys. This is your Sing. Have a very good day.