Hello friends welcome to my channel this is Subasish. Today I am going to tell you a little modified version of 5 EMA. In certain conditions you will have to be aggressive in position sizing.
There are not much changes in the rules because I don't believe in making changes again and again I will tell you the story why I don't believe. But if you look at the end of this video, there are certain areas where I am aggressive So I trade by increasing the quantity and where should the quantity be reduced. If you look at it, you will get a little more confidence to trade.
Yes, at this level, selling can come, reversal can come, so we can utilize it. In the last learning video, I promised that on 10,000 plus likes, I will make a modified 5 EMA Thank you for that. So now continue the video.
If the video is good, then like the video. So what will happen? I get motivated Yes, I keep making things like this for you.
Now let's understand a point first. There was a year 16-17 I found such a setup where I got 100% profit. So good things were going on.
I thought that no such system because as a trader, you feel that I will find such a system where there is a good probability or a setup with 100% probability. Trust me, there is no such setup. Even if complicated, because I have met a lot of traders, I know a lot of traders, they work in a lot of industries.
I only ask one question. No matter how complicated it is, 100 systems or automated and then the screen is installed, fancy stuff, everything is done. Software is there, options chain, OIE, there are a lot of things, I will see all the things.
I ask only one question that does SL hit in your system? So everyone's answer is that yes, our system hits SL. We have planned it for certain conditions.
If you keep one point in mind, if you have to do 100 things, if you have to install the SL, then why don't you keep things simple? Even in my system, SL will be a frequent hit. I have told you again and again that 5 EMAA is a setup where SL will be your frequent hit.
But the profits you will get will be 1:3, 1:4, 1:5, you will get it like this. What will happen with this? Two things have been solved.
One is that you don't need to take too much tension, irrespective of price move. You are just looking at the candle and an indicator. You have defined the rules, I will repeat it once.
If you have not seen the video of 5 EMA, you will just search on Google or YouTube 5 EMA by power of stock, you wil l get the videos, you can see easily. You will get to know in detail there. We learn a little advance in this video.
So that means here SL will be your one point, you have kept a simple setup and second is, you think you don't get big profits 1:3, 1:4, at least you will see it and it will go in your mind. Yes, next time I do the trail or hold, then your mind will work in this way. So both are disciplined or entry execution has been done.
It has become a little easy because the system is easy. You have understood this point. Now if I tell you a point, what were the rules, we have to sell in 5 minutes candle, we have to see the opportunity to buy in 15 minutes candle, we have to put an indicator of 5 EMA, that's all the requirement.
We have put an indicator of 5 EMA, we will sell in 5 minutes, we will buy in 15 minutes. Theory first I will tell you, if the candle is closed above 5 EMA, it is closed above it, neither its body nor its touch is not doing anything, it is closed above 5 EMA. Next candle onwards if it breaks down, we will take entry here, it will be a stop loss.
If the next candle does not break, it goes up, then we will consider the next candle, what is the next candle crossing, because 5 EMA moves with the price if the price is deviated, then the indicator will go up, the indicator went up, it went above the candle, that means the candle went sideways or the price will come above the indicator. If the price comes above the indicator, then we will get trade, it may come down from here, we entered and it converted into a big trade. Here the stop loss is very small, the target is very big.
In this way any candle, 5 minutes candle should be closed above 5 EMA, body low, wicks should not be done, after that if it is breaking down, we will enter here, similar in 15 minutes, your 15 minutes candle will remain, rest everything remains same. I hope you understood this point, now we will discuss how to increase accuracy. First let's see some examples, you will understand, this was a 5 EMA trade, after that here was a 5 EMA trade, somewhere around this level was a 5 EMA trade, here was one, here was one and somewhere around this level was one.
You must be seeing the first candle, this candle closed above 5 EMA, yes it closed, is the second candle also closed, yes it is closed, is its low break, no it is not, third candle's break is not there, after that, that means continuously moving upwards, but it was not breaking down, somewhere around here one trade will be found, after that you are seeing 1, 2, 3, here one SL, then here you got a good profit, there are 3-4 SLHs, no doubt, but whenever you get trade, there are very big profits, somewhere around this level, you got one trade and gave a big momentum from here, here imagine you are giving 10, 20, 30 rupees and here if you are earning 100 rupees, if you are planning 3 or 4 trades per day, then there is no need to do more, I plan maximum 3-4 trades per day, and if you get 1:4 then all the losses of the day are covered, but if you got a trend like this, where you are not getting it in reverse and continuous, then you can get a big profit. This point is clear or not, yes this trend is very good, if you see, there was a trade here, somewhere around this level, this positional here also, which gave a very good profit for the whole day, before that if we see 2-4 days ago, it works very well, but make sure that SL hits, here you got a big trade, after that somewhere around this level, there was a trade here, here SL hit, but this profit is very big, so small SL hits will be good, but profits are huge. One common question that many people have in their mind, Sir we have taken a trade in 5 EMA, correct, we have taken a trade in 5 EMA, should we take a reversal trade in 15 EMA?
My answer is no, because in initial time, I used to focus on one setup, either 15 EMA or 5 EMA, if you focus on both setups, then chances are that you will go in the wrong trade, so for this, I found out that if I got a certain condition, then I will trade in 15 EMA, in certain condition I will trade in 5 EMA, so for this, I am going to tell you the same rule, because this confusion comes to me many times, Sir I traded in 5 EMA, 15 EMA was visible, should I take 15 EMA? So I plan in certain condition, should I close it or not? I am going to tell you the same condition, which is going to be useful, do not change the rules at all, like I said, if you have left that system, instead of 5 EMA, I see 4 EMA, instead of 5 minutes, I see 3 minutes candle, I have seen all these permutation combination, I have agreed that 100% SL is going to go, let it go, but profits are huge, so we will wait for profits, small SLs will be given, this is the business, if we will lose 10 rupees, think of earning 30 rupees, just focus on this, if you think that I should not give 10 rupees and start earning, then you will waste unnecessary time, like I have done, then the day I have admitted, the market is supreme, I am not going to find any 100% setup, I have only this deal with the market, that if you want 10 rupees, in the sense if you want to go against me, I will give you 10 rupees, but when you will come in my favor, I will take 30 rupees from you, this is the condition in the market, I hope you are understanding this point, so if you are working on the risk to reward, then don't worry about it, SLs will be given, but profits will be given, so let's discuss what should be the condition, first condition is GAPS, I will tell you again and again, GAPS act as a supporter register, that means, at the time you see GAPS, imagine that the market has closed in 1000Rs, and yesterday it opened in 990, here GAPS was created, if the market is created, if it reaches the level, and here you get 5 EMA, don't hesitate to sell in good quantity, in the sense, if I trade 5 EMA, I trade 10 lot or 5 lot in 5 EMA, then what I will do, I will plan 2 lot for regular 5 EMA, and the day I see a high probability, gap is created, and I will tell you in this condition, there the scenario will be seen, I will go in my full potential, that I will trade in 5 quantity or 10 quantity, what will happen, if this probability works, if this resistance works, then we will get big profit in big quantity, if SL hits, small SL hits, then we will find the same probability, where there is high probability, we will trade there and recover, but I will plan in small quantity, and my trading account grows like this, if you imagine that today I see a market is giving a breakout, no confirmation, it is giving slow and steady breakout, it was 1000 level, market is breaking out flat, I am getting this in my mind again and again, because we have seen so many things in the market, we think this trade is not good, but the market moved according to the price, but we are feeling that this is not right, so what I do, I take 100% trade, people do not take trade, they leave it, thinking that this is a weak breakout, leave it, this return will come, we will plan reversal, do not make this mistake, make a rule, if this price is coming according to the rules, you have to take the trade, where you have to manage, by reducing the quantity or more, if I do not have confidence here, I will take 100% trade and reduce the quantity, it may be my biggest trade of the year, because analysis can fail, it went up a lot from here and I will miss the trade, instead to miss the trade, if it is in the rules, we will take the trade, but where a lot of rules are matching, imagine the level was 1000, second is giving you a breakout, 15 is also visible, and the breakout level is very good, at that time what I will do, I will increase the quantity, I hope you understand this point, where you will create confusion, reduce the quantity, and where you feel the probability is more, you can take the quantity well, which is the scenario of your desired losses or the quantity you are trading, I hope you understood this point, so this is the first rule, but the gaps will act as a support or resistance, in this area I like to trade in a good quantity, let me show you some examples, so you will understand, let's jump to daily chart, because if we have to see the gaps, we will see in daily charts, here in recent if we see the gaps, big gaps are visible, which should be visible, here if we see, yes, here also you can see the gap, you can see the gap at this level, when it came to fill, no doubt the market went up here, then it reversed and bought the next day selling, so somewhere here you may have got it in 5 ema, so this is a good scenario, somewhere around this level also a gap was created, you can see this gap, at this level if we trade in 5 ema, it may be possible, or if it sits right in our intraday, then we can take it in positional, because we have executed the trade in 5 minutes, then we hold it, as per the price section is going down, so I will hold it, what will happen with this, what you did first, increase the quantity a little, and if the stock is in your favor or the index is in your favor, if you get the profit, then you will get a very big profit, but if there will be losses, then there will be loss in 5 minutes, if there will be profit, then it will be in positional or in intraday, this is all matter, how you are reading the price and how you are understanding it, you can't imagine, you get so many trades, but make sure that you have to be ready, where the gap was created, where the gap was created, there you will get the opportunity to buy or sell, somewhere around this level you can see, here the gap was created towards buying, so if somewhere at this level you can see 15 EMA, this can be intraday, this can be positional also, now I entered, then hold it and go in positional, I hope you understood this point, somewhere around this level also a gap was created, somewhere around here also a gap was created, you are seeing how it is reacting at this level, it is possible that we got something in intraday, or from 38,900 to 39,400, around 15 EMA, that means this is the first point, those who watch my regular videos, they understood this point, gap atpatches, support resistance, now you have a little add-on, some dots are connecting, now we have to plan this, if the gap is visible, 15 EMA or 5 EMA is aligned, then we can trade in a good quantity, here also there was a gap, somewhere around, if you see, there was a little negative, then continued, so the gap created somewhere around this level, if it comes down, then we can get a good trade, because there is a gap, somewhere around this level also a gap is there, so it is possible that it came down, here we got 15 EMA, then we can trade, I hope you understood this point, this is the first rule, where we should increase the quantity, you are seeing this in daily charts, because if a significant gap is created, then it will give a very good profit, there is another rule, I am going to tell you, first like the video, if you understood this, because most important, gaps keep opening, so if you see, there is a gap pending here, if I get something at this level, 15 EMA by mistake, then I can trade in an aggressive quantity, because we can plan this gap at the support resistance, I hope you understood this point, how to plan, very good trades are available, if you see here, the gap was created here, you are not feeling, somewhere around this level, where you got a 15 EMA trade in this area, you will get a profit, here you got it in closing hour, then you may not be able to take the trade, somewhere around this level, if you enter here, next day, your entry was 43,938, 44,200, it is a very good profit, because the stop loss is very small, I hope you understood this point, how you are seeing, gap at the support resistance, if you get 15 EMA or 5 EMA there, you will get the trade, you will get 5 EMA also, you are seeing, how good a gap was pending here, and a very big trade was found here, somewhere around this level, the market continued upwards, then the market came down, and here you got 5 EMA, now you must be thinking, yes, we have learnt this, gap at the support resistance, but in that area, you have to check the quantity upwards and downwards, if here it will hit SL, then it is fine, there is no issue, because last time when we did more quantity, we got profit in the gap, if here loss was there, then it is fine, then when we will get probability then we will trade, what will happen, your mind will start observing, okay, the gap is created, I will wait, next time let it come, I will put 5 EMA, and wait, what will happen, you will be trained, you will be disciplined, that no, I don't want to trade at any price momentum, let the price comes to my level, then only I will react, I hope you understood this point, how we plan, now we go above the second condition, this is included with a little price action, so you have to understand this, next point comes, range shift, what is range shift, in the sense, the market was going upwards, came down, went up from here, then went down, you can see, the market was going upwards, it was in uptrend, I will tell you again, the market was going upwards, let's imagine, it is in uptrend, then the market created a resistance, then it was not able to go up, the range that has shifted, that means, the downtrend has started from here, this is uptrend, so we have to see where the range is shifting, the market went upwards, here continuously higher high is going, this is going up, but when low low is made, that means, it came down from the upside, so we have to put in this area around 5 EMA or 15 EMA, I will show you in the example, you will understand, don't worry, here if we get something at 5 EMA, it will be a very good trade, if I show you the example, let's go, you have to see mainly support and resistance, where is the support and resistance, let's go to 5 minute chart, we will see for selling, then we will see for buying, don't worry, you imagine what is support and resistance, if here the trading has closed, then for me, what is the resistance, the resistance is somewhere around this level, previous time, where the U-turn has been made, somewhere around this level is resistance, and above that is resistance, and if I tell you the support, this is all support, so what was our plan, the market came down, here it is waiting, this is support and this is resistance, if the market is giving breakout, somewhere around, it gave breakout above this, here it gave breakout, came down, at this level I will find 15 EMA, where 15 EMA, that means, first resistance was made in the market, gave breakout, the range shifted, then when this reverse is coming, there I will find 15 EMA, breakout was 15 EMA, if the breakdown has happened, then there I will find 5 EMA, imagine here, where is the breakdown, I will show you 15 minutes earlier, then we will trade in 5 minutes, you can see, it is a clear cut support, yes, market breakdown has happened, came down, this breakdown has happened, because breakdown has happened, then I will start looking for 5 EMA, why, because whenever profit booking will come, or reversal will come, I will trade this in a little less quantity, because here I will not get the opportunity to buy, where will I get the opportunity to buy, if the market is giving breakout from here, then came down, somewhere I saw 15 EMA, here I will take in more quantity, because breakout has given, previous range was resistance, range shifted, here I will try to buy in 15 EMA, but if the market is going down, even if I buy in this, but there will be no aggressive quantity, there will be less quantity, what will be aggressive quantity, let the market come, here if somewhere or going down, somewhere 5 EMA is being used, means 5 EMA is being used, selling side is being used, because earlier the market was going up, made a range, then it was breakdown, then I will look at 5 EMA, this point you must have understood, here I will sort in 5 EMA in aggressive quantity, this point is clear, before that I will show another example, you will remember, we had planned to break out somewhere around here, at this level, you will remember, we had done expiry trade that day, live trade, very good profit, the market went up from here, correct, this trend had gone, the market came down, correct, that means the trend has failed completely, yes, that means our buying side scenario has failed, here there is a gap, so what is our price action now, here it has become negative, so I am waiting, here I will not look for 15 EMA, how much I would have looked for 15 EMA, I would have looked for 15 EMA, if for buying, if the market had given breakout here, came down, here if I had got 15 EMA, then it is going towards the upper, here I would have liked to buy aggressive quantity, but this trend has gone down more than 15%, that means here all the 15 EMA that I am getting, I will not trade in aggressive quantity, because already the market is already down from top, as I told you last time, after giving breakout, after getting 1-2-1-3, completely from where I had given breakout, it has come to that level, so here I cannot be aggressive, I am waiting, when I will get 5 EMA, why, because the market price action has become negative, and I will get 5 EMA, there I will again plan aggressive, in this case if we will see, somewhere around here, the price went up, came down, here you got 5 EMA, went very high, price has changed here, if you will see, this breakdown has happened, was making higher high earlier, now low low has started making, so here my 5 EMA will be executed, that means you can change on two scenarios, where 5 EMA, where 15 EMA, you have to be aggressive, first thing, like here is the scenario, there is a gap, here we can buy aggressive, in 15 EMA, wherever we see, in this area, we can buy, here, here, we can plan all these, if you are thinking that we will get loss here, this was closing hour, so many people will not be able to intraday, but if we will trade here also, it is more than 1-2-2 or 1-3, after that, we did not get anywhere, somewhere around this level, a little sideways, a slight lead, fine, so here we got trade, it is more than 1-2-3 or 1-2-2, if we take positional, in intraday, 1-2-1 or 1-2-2, something is available, nothing more than that, so looking at the area, I trade, where to be aggressive, where to slow trading, if you will see here, correct, somewhere out, let's see some buying scenario, imagine, the market is going up, correct, that means this was resistance, in this area, if in the breakout area, something is 5-15 EMA, then we are planning aggressive, somewhere out, at this level, why, because in previous time, the breakout was given, the market came down, if we are planning at this level, then it is possible that we are planning something aggressive, rather than selling, you are seeing, here aggressive buying has happened, somewhere it will be supported, let's see in previous time, somewhere it will be supported, see, this gap was created, exactly at that spot, we saw in 15 EMA, here I will trade aggressively, here if it is seen in 5 EMA, I can sell, but I will sell in less quantity, I hope you understood this point, if you don't know how to read price action, then it is okay, there is no issue, there is no load, if you don't know how to understand price action, there is no issue, you can follow the rule I have told you, if you want to check position sizing up and down, then gaps and range shift, if you learn this point, well and good, now if you will see, somewhere around this level, there was a resistance, at this level, the market directly gave breakout, so at this level, I will plan, if I get 15 EMA in this area, then I will plan the trade, where is the selling area, selling area is here, 44,500, if something comes at this level, then I will plan aggressively, otherwise I will not plan, if the market is seen at this level at 15 EMA, because the previous trend was buying, came down, so if it is seen at 15 EMA in this area, then I can buy aggressively, if you say that no, sort aggressively here, I will not be able to, because there is nothing special in this area, it has come for selling from before, I used to do this, 2-3 times, it has been tested, so we will not plan aggressively, here we will plan less quantity, where will be aggressive selling, if the previous swing of the market breaks, here is the previous swing, the market came down, broke, after this, when the first pullback comes, if I will find here also, where can I sell aggressively, selling came down, somewhere around, our target came here, if the market went into the flow, well and good, if something is found here in 15 EMA, then we can buy aggressively, because this is a gap, you must be understanding how you can do it, how you can plan, because generally what happens, let's say if the market has to go down, then it can be, came down here, made a 15 EMA candle, we bought it, did not open it, came down, but here the 5 EMA will be sorted, you will get money from it, because from 700 to 400, the range is almost 300 points, 100-100 points, we traded in 5 minutes, 20-30 rupees, 50-60 rupees, 100 rupees, 1-4 or 5 can be, but you will get in confidence, which area should I increase the quantity, in which area, there is confusion, reduce the quantity, there is confidence that yes, this is a resistance, there is a support here, or there is a gap, there you can check the quantity up and down, and all these points, no one will tell you, because no one handles position sizing like this, in positional sizing if it was 1 lakh, then it is 2 lakh, then increase the quantity, it is not done in this way, because you know that if you trade consistently in one flow, then definitely your account will be linear, that is, flow and study will grow, but if in some certain condition, if you are seeing a good trade, and you are taking a risk at that time, the previous time profit, if you are taking a certain percentage of risk, if you get a big trade, then you will get a lot of confidence, yes, if I lose the next 10 trades, then also my money will be made in the market, this will happen when you find the right probability and trade, wait, no issue, if you understand the gap, wait, when this price will come to this range, then I will trade, or if there is a gap on the upper side, then I will come and trade, or if I understand the price action, then I will be confident, but wait, time will come, you will get trade, you will get money, but make sure not to trade unnecessarily, if you want to trade, which I told you, in a small quantity, in 5 EMA, you will practice like this, you will get money according to the probability, but if you want to increase the age a little, then you can focus on these rules, I hope you liked this video, that's all for now, thank you.