Are you looking for the best trading setup for intraday traders? If yes then this is the best article ever written anyone about it. Because in this article I have written the exact setup that I have used for the past 4 years and I know this is a profitable setup. So after reading this post you never need to search any other article on google about it. Let’s start.
Intraday Trading Setup 2022
Intraday Trading Setup For Intraday Trader: Today’s post is going to be very important for the intraday trader because in this post we are going to talk about the intraday trading setup from which you can do intraday trading. If you are an intraday trader, then you must be aware that trading setup and discipline are very important for trading. Because if you do not work with your setup, then the market will easily trap you. You have to prepare a setup of your own and practice it for some time if you feel that I am confident in this setup then only you have to trade on that setup. Now we go ahead and tell you about some setup on which you can practice and trade.
Setup-1. Price Action With Trend Line, Patterns, Support, And Resistance
In this first trading setup, we will learn about the price action trading setup in which we will mainly trade using trend lines, patterns, support, and resistance. How do we use these three things which we have explained below in detail?
Trend Line: The trendline is the first concept of our trading setup using which we are going to trade. When we go to trading in the live market, before trading, analyze the long-term, short-term trend of many stocks and draw the trend line and then see which side of the market it is on.
If the market is feeling like a boom in the Nifty and Bank Nifty, then we have to trade in the direction of the trend line and if there is a trend line break also, till the valid breakout is not confirmed then we should not trade in the opposite direction of the trendline.
But if you feel that the Nifty and Bank Nifty are going to fall, then you should not trade in the direction of the trend. Find charts of a stock where the trend line is about to break out. Trade-in as soon as the trend gives a breakout with line volume.
Patterns: Patterns will be our second weapon of trading. Whenever we do the trend analysis of any chart, then see if there is any pattern in the chart of the stock. If you see a pattern forming in it, then you see the direction of the break out of that pattern in which direction the breakout is happening. If the breakout of the pattern is in the direction in which trend analysis occurs, you can trade in that stock.
Support And Resistance: When we have analyzed some trend lines and patterns and selected some stocks, then it is now the turn of support and resistance. Now we have to see that if we are bypassing a stock then the major support and major resistance around it At how many points. According to that, we have to disguise our target and stop loss. If the risk-to-reward ratio is not favorable then avoid that trade.
Setup-2. Indicator With Exponential Moving Averages Crossover
In this trading setup, we are going to trade at a crossover of some exponential moving averages. This trading setup is also very good if you practice for some time, although a little late entry is available in this trading setup it is a successful entry if you have practiced well. In this trading setup, we will talk about some of the main three crossovers which we have explained in detail below.
4-9-18 EMA Crossover: 4-9-18 moving average crossover is a very good crossover in that if we cross all three moving averages at the same point in a time frame, then we make our position in the direction in which that cross occurs. Look more effective, especially in larger time frames.
5-20 EMA Crossover: The 5-20 moving average is also a very good moving average crossover. In this, when the 5 moving average crosses the 20 moving average, we take our trade in the direction it crosses and keeps the target and stop-loss based on support and resistance.
10-50 EMA Crossover: 10-50 movie average is also a very good moving average crossover like both moving averages. When the 10 moving averages cross the 50 movie averages, we execute our trade in the direction of the cross.
In this post, we told you about some trading setups that you can use to make your trade. The probability of the success of this trade setup depends on your practice, and how much you practice it, so if you liked this post, then share it and comment on your friends and tell your opinion.
I am a share market expert for the last five years. I have expertise in technical analysis, and fundamental analysis of stocks, and assets. On this website, I write content like analysis of shares, predict future targets of shares based on analysis, simplify technical analyses, and intraday trading.