Iam this time presenting you a simple intraday strategy by using this you can analyse your favorite stocks
and can analyse when to go long or when to short on intraday basis. In this article i took Nifty as an example
to showcast the Intraday view.
Before going to our analysis section let us recap what has happened yesterdays market.
Nifty Data for 02,June 2008
Open : 4869
High : 4909
Low : 4713
Close : 4740
Also have a look at Nifty intraday chart as shown. In the Nifty Intraday
CandleStick Chart you see you can notice
5 types of EMA (Exponential Moving Average)
Click the above chart to get enlarged
3min – EMA – Red Line (closely following candle Stick)
13min – EMA – Green Line
34min – EMA – Black Line
55-min EMA – Gold Line
200 min EMA – Yellow Line ( Wont visitble good in white background so i kept it orange )
Two Simple Rules to Follow
1) Go Long if 3 EMA is above 13 EMA and 13 EMA is above 34min EMA with stop loss below 34 EMA
2) Go Short if 3 EMA is below 13 EMA and 13 EMA is below 34min EMA with Stop loss above 34 EMA
Remember : These Two rules wont follow in a range bound market and well behave in case of volatile market
If you witness from the stock that at 4870 it is clearly witness from the Intraday chart that 3 EMA is below 13 EMA and
13 EMA is below 34min EMA with Stop loss below 34 EMA. Cool We have founded the selling point in Nifty.
So one can short the market at this level with minimum stop loss at 4890 above 34min EMA. If EMA pattern reverses then your stop loss may hit.
But if you notice the chart it is clearly evident that the pattern doesnt changes until the end of the session so one can carry forward
to next day or else can book the profit.
For Real Time Intraday Charts visit our blog NSE Tracker ( Also found in our Important Link Section).
Where you can find a nifty intraday chart with above mentioned EMA’s
Also you are requested not to take trade based on this two simple theory alone. As lots of patterns and signals are there and
this pattern is one among them.
We will discuss more strategies in comming days. Till then stay tuned to book your profits
Author – MarketCalls