so in this blog, you will learn the 10EMA strategy. What does 10EMA mean? It is a strategy in which we follow exponential moving averages, and Anand Lada Ji has been using that strategy for a long time. It has been backtested and is now getting great results in the live market.So you need to learn this strategy. If you want to make profits continuously, second, if you are looking for a strategy to make money by following the trend, that strategy is simple to execute and learn.
Let’s learn this strategy with one and only Mr. Anand Lada.Pushkar, what is our basic purpose whenever we apply any strategy in the stock market?What do we want from the market?Making money.Making money. How simple is that? So you will know how to make money from this strategy.Right.When I worked at Nifty, I looked for a new strategy. I look for something else for Bank Nifty, for stocks, for different time frames, and use different strategies.Use that time frame as per your wish.
Use that chart as per your wish. I am not saying only India’s chart; you take the international chart. Apply it randomly in any chart. This strategy will be applied because following this trend tells you how to follow it.So beautiful trend-following strategy is very simple. Simple does not mean it is easy to apply. Because it will be easy to apply when this strategy becomes yours.
Now my strategy is confidence. To increase your confidence, you have to apply this strategy.When you learn this strategy, you will understand whether you apply it in a dummy, in an actual market, or with small capital. Today I will tell you about options buying, option selling, futures, cash, and stocks; if you want to work directly, I will tell you about stocks.You can use the same strategy as per your wish.Right.Let’s go.Let’s start.Let’s go.
I am telling you the basic framework here. Then I will tell you live examples.The examples that we have already done live on YouTube. We have told the same examples in the live market. We will discuss the same examples. We will use it in multiple time frames.We will try to apply it on Nifty, Bank Nifty, or whatever random chart you say.We can pick any stock. If you trade in stock options, we can pick any stock for you and use the same strategy.
You can use it as per your wish. You are saying that I can use it for INR; you can use it for INR or USD. You can use it anywhere, but first, understand the strategy.You understand it very basic.Yes.First of all, what we do is we have written the name. We simplify each word, starting from the very base, and gradually add blocks for you. Here we have written 10.10 means that whatever candlestick you see on the time horizon, you must talk about the average of 10 candles.
Here, exponential moving average. First of all, let’s understand what average is.We are talking about A. Suppose Pushkar’s weight is 70 and my weight is 80.If we add the weight of both of us and divide by 2, then the average weight is 75, which is the average.Similarly, the exponential moving average is this. You will get two types of moving averages.One will be a simple moving average, which we also call SMA.I have given you the example of SMA perfectly. One weight is 70; the other is 80.If we divide both, then my average weight is 75.
So, this is a simple moving average.Now, what does the exponential moving average say?I will give more importance to the recent observation because it has just happened.For example, if I have 5 candles in front of me, I will give maximum weight to the 5th candle and give maximum importance. For example, I have given 5 importance.I will give 4 weightage to the 4th candle, 4 points. I will give 3 to the 3rd candle, 2 to the 2nd candle, and 1 to the 1st candle because the 1st candle was made before 4 candles.
So, I am trying to say that we give more importance to the recent observation.So, it becomes your exponential moving average.Similarly, if you go to the time horizon of 10, the lines will be almost the same whether you apply SMA or EMA. If you need, then open your charting software.There, apply 10 SMA and 10 EMA. Both the lines will be almost the same.So, there will be not much difference. But we want to ensure that you and I use the same thing and come to the same figure and base.
So, for simplicity, we have applied 10 EMAs for you.Strategy is because we will talk about a strategy you will enjoy.So, your base is clear. Now, clear the second base.Whenever I make a line of 10 EMA, I leave the time horizon and just understand there is a line of 10 EMA.You can apply the indicators in the Demat account where you trade.So, you will apply for EMA. We will show you now.So, you will understand.10 EMA is a kind of indicator to push. How does it look? Where does it look?
We will show you all that now. So, there is a line of 10 EMA.Now, you have to understand that if your index or chart is above the line of 10 EMA, it is above the moving average of 10 candles in the last 10 days, which means this particular chart is bullish.
If it is going down, then it is bearish.It is basic. The first point is clear.The second point is that if it is bullish and I am getting green candles back to back, for example, I am getting green candles back, it means the market is bullish; I am getting bullish candles in the market, I don’t have any figure, I am not getting any indication here.
I am getting these green candles; the market is going up daily.The trend of the market is positive. I am getting green candles; it is supporting it.But suddenly, all of a sudden, I get a red candle.This means, for the first time, the bullish market that was going on is trying to break that momentum and go into bearish momentum.Whether it wins or not, we will know that later. But here, an effort has been made.This candle has become a trigger candle for us.
You have to keep in mind two things about this candle.First, it should be a red candle if you are talking about a bullish trend.Second, it should not touch at all.The 10-year line should not be touched.Remember these two simple points, and this is your trigger candle.
Now what is the trigger candle?The trigger candle means that the market tried to reverse.But if again the high of this candle breaks from the next candle, whether it becomes a green candle or a red candle if it breaks, then we get confirmation that the market’s previous bullish trend can continue from here, and this is your entry trigger.
Let’s understand where the entry trigger is.The high of this candle is your entry.What is the stop loss?The 10-year line you see below this candle is your stop loss.What is the risk-reward? What is the target?Whatever area you are getting, start it from 1 to 2.Keep 1 to 2 in the starting because, in the starting, there may be some stop losses, and you may face problems in how to adjust and how to trail.
Start from 1 to 2.Here I will show you live,1 is to 7, 1 is to 8, and 1 is to 10 risk-reward ratios will be easily available.Because your SL is very small.It is a very small stop loss.
Now you will see that you will have a stop loss of 30-40 points.If you try to trade for 5 minutes intraday, there will be a maximum of 25-30 points which will be your stop loss.And the entire range above will be open to meet until this trend is followed.Now you want to trail it; for example, we must keep a 1 to 2 risk-reward ratio.If someone says that I will trail, then you have multiple options to trail.Let’s start with the simplest option, which most people can use: our 10-year line.
I just keep trailing on the 10-year line.Very simple.If any candle closes below the 10-year line, you will have a stop loss and move there.This is a simple option.It is a simple thing that a candle is made, which breaks the 10-year line and closes below.So you know that when you talk about a red candle, it is open from above and closed below.And a green candle is open from below and closed above.So we need closing below; this is important.This is the best thing about you.You get into the basics a lot.
I was assuming here that you know this much, but when you get into the basics, it is the best part.99% of people know this.But one person who will say that there is confusion here, we have to be more careful for him.Everyone else will understand.It was fun.So this is your first option for trailing.The second option is ATR.It is only for those who are a little professional and want to go above this same strategy and make an algoBut you can go to 2 ATR or 3 ATR and trail here.
If you try to make algo on it, I am trying to make it algo; I am also testing it to be fun.And we can apply the same thing and leave it.So that happens for your blog, which I have covered for you.Apart from this, it can happen to you that I will go there whatever the previous candle is if the low of that previous candle is cutting.These are just 3 types of stop loss.If you want to start suddenly and say that, Anant, say one thing, then this is done for you.So basically, to the trial, I told you ATR; I am just telling you the true average range.So whenever you use a trend-following thing, ATR is useless for you.
That’s why they just told you ATR to trail.What happens in Algo is that a system is trading for you.When the system trades, ATR does a very good job there.Especially if you work on 2 ATR or 3 ATR, you can take full advantage of a whole trend.Whoever uses algo or understands basics will understand this.If you don’t understand, then comment.We will also talk about algo in detail.If you don’t understand, then do that first.Do it simply first.First, you reach 1 to 2, then reach 1 to 3.
Now let’s reverse this.This is a long trade.I told you that you would get all the trades in one strategy.So basically, I committed that you can buy, sell, and do it in options.I will tell you how to do it.But till now, you have understood the buy side trade, in which you are taking a long trade.Now let’s talk about how my short trade will be triggered.This is my 10 EMA line.is in a bearish trend.
For example, my stock is breaking, and red candles are being lit.If my stock is below this 10-day limit, it breaks, and the candle stick turns red.But suddenly, a green candle appears.It means that this stock or index is trying to rise in this breaking trend.It is trying to reverse the trend and go to the next trend.But if the low of this candle is cut, then I will have an entry of short.I will go here and do a short.Because there is a trend of falling.A green candle is found, which is trying to reverse this trend.But that trend fails from the next candle.
So, here is my short and stop loss.The target is 1-2.When doing short, keep the target 1-2, 1-3, and a maximum of 1-5.In short, there is a limit to which the market can break.There are many other factors.For example, the put-call ratio is overbought or oversold.There are chances of getting reversal or retracement.In short, you have to book a profit of 50% on a maximum of 1-5 risk-reward ratio.Usually, you have to start on a 1-2 risk-reward ratio.Instead of 1-2, I can immediately take you to 1-3 or 1-4.And you will get it easily.But initially, I want you to take money to your home.
This is my main purpose.Take a small amount of money, but it should come to your home.So, in 1-2, money will come to your home regularly and frequently.There will be days when you will work in a 5-minute time horizon and do it intraday.You will get 4-5 trades in a day.3 of them will be correct.And the risk-reward ratio is maintained.
So, you will take good money to your home.I am saying 3 trades.I did live 4 days ago.I got 7 trades in a day.I talked about taking the trade in just 1 strategy.I got 60 trades, out of which 5 were profit.And in 3, we got a risk-reward ratio of 1-5.
We took it out live very easily.So, I am telling you that you should have confidence in this strategy.You should understand what is happening.When you understand, and things are clear to you, you will enjoy it a lot.If you want to trade here, then again, for clarity or simplicity, We will assume that we will trade on the 10 EMI line.If any candle gives closing above this 10 EMI line, even if it is A candle, Then we will assume that our stop loss is set and exit for trailing.It is simple till here.
Now, let’s go to the live example.We are going to live an example here.But I want to tell you one thing.Anand said that when you will short, you should not think above 1, 2, 3, or 4.The reason for that is that if you are trading in Nifty, BankNifty, Nix, or Stocks, Then generally, what happens is that Nifty, Bank Nifty, and Nix have to go up.So, when a big move comes, an uptrend can be sustained for a long time.What will happen in short?The market immediately falls but bounces back.
So, we don’t know how long it will sustain our round trend.But the uptrend can go on for a long time.Probably, this will be the reason for an uptrend.Right.And let me tell you one more thing.What is the main benefit of this strategy? See, apart from this, there are many other indicators and strategies that we can use.
But what happens in all the other strategies is that when the market is sideways, Usually, you should go to any time horizon and see.When the market is sideways, it is around 10 EMI, which is for the time horizon.For example, if you are looking at a very long-term chart, Then if you see the weekly chart, it is always sideways for around 10 weeks.
So, when it is around 10 weeks or 10 days or 10 candles, which are of 5 minutes, In any time horizon, if you pass the time around it, you will not get fake signals.So, when the market makes candles around this 10 EMI line, You are out of the market at this boring time when you do not have a market on any trend side.See, sometimes, not falling in the trend or not getting stuck in the trade and saving money by sitting quietly.And if you do this strategy, then we will see it live.
So, we have come to the screen. I will try to explain you in a basic way.First, I have put an intraday chart for you.5 minutes intraday chart is put.This 10 EMI line is already set for you, which you will get from the indicator.If some of you want to see what is in 10 EMI, I will punch it exactly in front of you.You have to write 10 and 10.Your 10 EMI line will come.
Let’s revise it once. If any candle is above 10 EMI, it is in a bullish trend.If it is below, it means it is in a bearish trend.You got this 10 EMI line.And here, the candles are below 10 EMI, Which means the trend is bearish.Negativity is going on in the market.The market is going bad.In this bad environment, you get a green candle even while walking.This is your trigger candle.Which is not touching the EMI line.It is not touching the EMI line.In a downtrend, suddenly, a green candle is formed.This green candle reverses the downtrend.For us, this is a trigger candle.
Now we just have to ensure that the low of this candle is cut on the next candle.If it cuts, then we have an entry there.This is our short entry.This is our stop loss.This 10 EMI line is my stop loss.And I have to work on 1 to 2 targets.If you see here, The target of 1 is 3, and 1 is 4 has been easily formed before you.Now here is one thing that we clear to people.I was also feeling this in the starting.And this clarity is necessary only.Because according to this strategy, When you enter, At that time, your EMI line will be your stop loss.This point is your stop loss.Right, right, right.
This point is your stop loss.So if you want to do a trial, Then you can do it according to the EMI line.But your stop loss will remain the same.Stop loss will remain the same.What is the trail?The trial is that when I have come to profit, After that, I want to increase my profit.I want to have fun with my profit.Your trailing starts after the profit of 1 is to 2 comes.It will never happen that this is my stop loss.This is not your stop loss.This is your stop-loss line.But when your 1 is to 2 profit is done here, Then you can do a trial on this EMI line.Then your trailing will start.
Trailing starts when you have come to profit.No matter what strategy you are using, always keep this point in mind.Sometimes, we start trailing from here.If you start trailing from here, Then if you use any strategy, The ratio of its success will be very bad.Because whenever you get an entry in any strategy, Sometimes you will get a false signal immediately on the next handle.And it will try to eat your stop loss.That’s why you don’t have to be afraid.Your stop loss is here.
Your trial has been done very easily.Let’s see the exact ratio of the reward ratio.We will see that.But if someone trails, it will come out on this green handle.It will come out somewhere here.Because its closing is there.Before that, the closing was not done above the EMI.Absolutely.So you can show the ratio of the reward ratio.Let’s put it here.So your reward ratio is easily above 1 to 3.It depends on you if you start at 1 is to 2.You do trailing after 1 is to 2.If you start at 1 to 3, It depends on you.
This is a perfect example for you.Now I will tell you how you can use options or futures.If you want to use futures, We will directly short the futures.I want to do option selling, Which will be amazing.So for option selling, It becomes very simple for me.In the area of my stop loss of 10 EMI, I will sell the call of this level.Here I have to call out of the money option.You have shorted the call out of the money.And your risk-to-reward ratio is very good here.
You will trail the premium.Like you are getting 1 is to 2 or 1 is to 3 based on a candlestick.According to that, you will trail your premium.Instead of this, If someone is starting new, He doesn’t know how to trail based on this candle.He can keep a simple stop loss of 15% and 30% on the call premium.It will depend on you.But the call sold here will give you a very amazing profit.
If you sell the call here, The market will come up here.You will not come to a loss the majority of the time.You missed the train, stopped loss, Missed the trailing stop loss, Missed the trail again, and Missed the profit booking. Still, you are on profit if you have done option selling.It became simple.Now if I want to buy an option, You can’t be wrong.If you want to buy an option, You will put buy here.As soon as your trigger happened here, You put buy.And for put buying, As soon as you see the risk-to-reward ratio of 1 is to 2, You have to exit somewhere here.
Another reason for that is that you don’t know the exact bottom.That the reversal will come from here.So now big green candles may be made again.And the entry you did, You didn’t see any profit there.On the short side, I won’t look for 1 is to 2 or 1 is to 3.You will get 1 is to 10 in this.But then you have to trail.And use it after an experience.On the long side, You will say I have bought a call.And I want to trail a little.I want to take 1 to 3.I will say take it.
No problem.But on the selling side, You have to save a little on the short side.So now we have shown you a live example.Where we got a short trade.Now let’s see another example.And there is an example around the same day.Where we got a long trade.This is a complete strategy.Let’s see that.Here you can see that your candles are being made above 10 EMA.If it is above 10 EMA, it Means there is a market in an uptrend.Suddenly I get a red candle.And I think that maybe this uptrend is going on.It can be reversed.This is a sign of reversal.
When we buy options, we need immediate momentum, and that too in our direction.So, our tough conditions are like this. See, what happens in the market is that if we ask for one thing, the market is very good.Here you are saying that the market should increase, it should increase in my direction, and it should increase right now.
So, you have asked a lot from the market.That’s why you have to keep your stop-loss very tight. And when you have a sizable profit, you will have to exit there.This is your buying strategy.I will tell you one thing if you see this strategy, see; any influencer tells you this strategy, he tells you from his experience he has a lot of good profits, and that’s why he tells you.But I will tell you that you have understood this strategy today.
I don’t say that you go and trade from this one day, do not trade.You first trade paper. You see that you are getting results; if you are getting results, you trade with less capital. I remember that I was exactly live on YouTube on the same day.You will go to my channel and see you will get the same day.And here, we discussed an entry on the 10th evening; here, our buying trade should be initiated. We were trying to study this.
What I am trying to say is I am not saying that there will be no stop-loss here; there will be stop-loss in many places.But if you maintain your risk-to-reward ratio of 1 to 2, and at some places, you get a risk-to-reward ratio of 1 to 5 or1 is to 10; here, you can easily play 1 to 10 as much as you are getting.You got it like this. There can be a big profit, but you must systematically follow a strategy regularly.I will use this strategy today; yesterday, I went to find a new strategy in Chambal Garden, then I used a new one.This strategy does not work like this.
You have to work 100 trades or 3 months regularly in one strategy.After that, you can say that this strategy was right or wrong.No strategy is proven right or wrong by working for 1-2-3 days.I just saw here that we were on a 5-minute time frame. I was saying out of the money, but at that time, people would say that we would take a strike price of 17600 or 17650. So I would like to tell you that you are at a 5-minute time frame.You can also follow the same strategy in the 1-day time frame.I was saying this because I had to explain it to people.No, the logic should be clear.
You said 1 day; let’s check on 1-day.So now Pushkar said that try to put on a daily candlestick. Here, the daily time frame has come for you.And in this, your put selling point, that is, the option that was out of the money, the selling point will be perfectly applied, and you will have a lot of fun.For example, you got a red candle here. See, this is the line of 10 EMA. The market is above 10 EMA, which means it is positive.This red candle is made. As soon as I cut it, my entry was made.
Or I go to this level and put sell.Okay, when you sell on this daily time frame, there are two things.One thing is that if you want to make money, then you will do it with a little capital. The second thing is that you have a little patience.But if you want to make money continuously, I am telling you the truth; I don’t think it is better than selling daily.Dude, you have a momentum of 1000 points. You have eaten your full premium.What am I saying? I don’t think it is better than that. But people say that we have to double or triple in intraday.So for that, you should be a person who controls the heartbeat.
So see, this is your perfect trade, and your risk-reward ratio is very easy from here.It has been reduced to 10. Let’s take one more example where your stop-loss might have been hit.See this example. If your stop-loss is here, then marginally would have been hit, or it would have been saved.No, no, it didn’t close. It didn’t close, but if it comes below this line, many people will take stop-loss.It’s okay. Here you got the entry again. And this much stop-loss.How much? There is no stop-loss of 50 points, and see how far the market has gone.
You can bring it as far as you want. So it is not that there will be no stop-loss.Let’s say you don’t consider this perfect example of stop-loss; then it will work.But if you consider that stop-loss has been hit, what is the problem?You have not given a stop-loss of 20-25 points.That is the thing. People don’t understand this. When you do directional selling, then the theta dying at that time is fun.You are getting money from the direction, and theta is going according to the daily time frame.
According to the rose, theta is ending. So it will be fun.Depending on what you are selling, you must understand that you have to sell weekly, next week, and monthly.That is exactly my point. We will talk about it in detail later.But one more example, very recent where the market has closed.This is your 10 EMA line, your stop-loss, and your risk-to-reward ratio of 1 to 2.And suppose this gap is still a little less. If there are many gaps up, you can bring the low of this candle.You have to keep this much subjective matter to yourself that how much stop-loss I am taking.So this is a complete example.
And if you are not doing it yet, then today you are in the market, you are inside, and you are trailing, and your entry was here.At the time, around 17100, everyone was afraid in the market, but your strategy gave you entry.So this is how your 10 EMA strategy is complete.Now people will say what to do now, so it is done. Now you have to do. Next, you must wait for a red candle because the trend is going well.Here red candles were made.
No, no, I am saying the latest now. What to do now?When the red candle is made, wait for the market to close.And wait that the red candle should not hit. Not a single trigger candle because all three have been hit.So if that red candle does not touch after that high break happens, you will understand what to do. Then sell on put at the daily time frame.But I will tell you in short; it suits me that you will feel good if you sell it 45 days ahead.I mean, it is my experience.