Trading

The most common mistake a beginner do is to use so many Indicators and Strategies which makes us so confused and everything becomes so complicated that we can’t even make a decision to take the trade or not and then start taking wrong trades and if it fails then tries to hold it until the price comes up at your level and eventually you become an Investor 🙂.

Now let’s understand one of the simplest yet an effective strategy:

1) Price-based action: EMA acts as good support and resistance. Use 50,200 EMA in 15 minutes time frame.

In the uptrend, if the price comes down to ema and takes support from it then we can buy near it and stop-loss a little below ema. In the downtrend, Ema acts as a resistance and price may come to it then fall again so we can short near it (see picture)

{Notion page link for all the images used here (but not clearly visible) - https://internal-tumbleweed-664.notion.site/672070fd663e49e09a96168e846491ad}

Notion page link for all the images used here (but not clearly visible) - https://internal-tumbleweed-664.notion.site/672070fd663e49e09a96168e846491ad

If price breaks up Ema vigorously(with a big green candle {1or multiple candle can be considered}) then a good uptrend may come and we can buy near it. From this breakout point, the Ema will now act as good support which was acting as resistance before the breakout.

Same if the price breaks down the Ema then a good down trend may come so we can sell over there. Ema will act as a resistance now.

If a short-term Ema crosses up a long-term Ema then an uptrend may come and we can buy at that point.

If a short-term Ema crosses down a long-term Ema then a downtrend may come and we can short near it.

Notion page link for all the images used here (but not clearly visible) - https://internal-tumbleweed-664.notion.site/672070fd663e49e09a96168e846491ad

So it’s better to not get fascinated by so many indicators at the starting of your trading career.

At last, I would suggest using only one strategy at the beginning and testing it, trying a new strategy then testing it too and finding the strategy which suits you and gives you profits. Follow this until you understand the things otherwise, you will become an investor rather than a trader.