Which Indicator is Best For Intraday Trading – The most important thing in Intraday trading is that you enter the trade at the right time and exit at the right time after getting the profit.
To enter at the right time, we take the help of some technical indicators which help us understand the movement of the market.
There are more than 100 technical indicators available for trading but we cannot use all the indicators. Using more indicators can lead to confusion as each indicator works on different calculations.
Today we will discuss about an indicator that I have been using for many years. This indicator gives me the most accurate information about the movement of the market or stock.
EMA Crossovers
Of all the technical indicators, I find EMA crossovers to be the most accurate. If you use EMA crossover correctly, it can give a new heights to your trading career.
For doing intraday trading first you have to choose a time frame and I always choose 15 minutes time frame. This time frame works best for intraday trading.
Now coming to our indicator, EMA crossover can be effectively used for both intraday trading and swing trading.
But for swing trading, the time frame will be different and for intraday trading, the time frame will be different. For swing trading, you should use a time frame of 30 minutes.
Set the EMA crossover at 7,21 and then wait for the crossover. As you can see in the picture we set the EMA crossover at 7,21 and then waited for the crossover to happen.
You can see that the EMA crossover happened in stock at 169.50, after that, you have to wait for a 15 minutes candle to be formed.
When a 15-minute candle is formed after the crossover, you have to enter the trade at the high of that candle.
As you can see in the picture 171.65 is the high of the candle after the crossover. Just at that point, you have to take the trade. After entry, you have to put your profit at 1%.
If you want you can mark your profit at 1% or 0.5%. Reaping profits depends on your risk-taking capacity. Don’t get too greedy and walk away with the profit you have decided.
This indicator will prove to be correct 7 times out of 10 and if you add Fibonacci Pivot Point to it, then this indicator will give even better results.
Precautions
1) Wait for a full candle to form after the EMA crossover and enter the trade at the high of that candle only.
2) If a red candle is formed after the crossover, don’t take that trade and find another stock.
3) Place your stop loss at the low of the candle after the crossover.
4) It would be better if you place a Bracket order or a Cover order, as you will not be able to enter or exit as fast as you would when placing a manual order.
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