Intraday_Entry_Exit_Simple_Indicator

Hi,

This indicator is based on the analysis that I have done on Bank Nifty, Nifty 50 and some of the NIFTY50 Equity Stocks and it helped a lot in providing indications when to take an entry and when to exit a trade

Please feel free to provide feedback incase you feel this indicator can be improved or if something is not right



Methodology Used:-

• Analysis is based on Exponential Moving Average Indicator
  Four different EMA Timeframes are used to create a pattern - EMA 20, EMA 25, EMA 45 & EMA 55
  Combining these four EMA's we will create a pattern on the chart which will be used to read the data and identify Entry and Exit points for a trade
  This indicator works best on 5min timeframe. But you can also apply to 15min or 30 mins timeframe to get more confirmation before entering a trade
  

Functionality :-

Indicator Set A (EMA 20 & EMA 55)

Indicator Set B (EMA 25 & EMA 45)

Timeframe Used - 5 Mins




How to Use the Indicator :-

Looking at the placements of EMA 20 & EMA 55 lines on the chart, first we will identify Market Trend (Positive or Negative) and basis that we will apply our strategy

Positive Trend:

EMA 20 line will be on the upside while EMA 55 line will be towards the downside
All four EMA Lines should be facing the top and shall be moving in the upwards direction

Negative Trend:

EMA 55 line will be on the upside while EMA 20 line will be downside
All four EMA Lines should be facing towards bottom and shall be moving in the downwards direction




Identify Entry and Exit

Positive Trend


*Identify the point where Indicator Set A crosses each other [EMA 20(Dark Green) crosses EMA 55(Dark Red)]. This intersection will be an indication that our Entry point is nearby
Wait for Indicator Set B to cross each other [EMA 25(Light Green) crosses EMA 45(Light Red)]. This intersection point will be considered to identify our exact Entry point. Lets say this is Point A
Now look at the candle that is formed after Point A, wait for that candle to close and then note down the price point of High made by that candle. This High (Lets assume it to be X) will be our Entry Point but we will not enter at this moment
Wait for a candlestick that closes above Level X wherein the LOW made by that candlestick should be above the price point X and the moment candle closes and fulfils this condition we will enter into that trade
After entering the trade, we will keep a watch at our EMA Lines to find our Exit point and that will be at a place where these lines will again cross each other
Wait for Indicator Set B to cross each other [EMA 25(Light Green) crosses EMA 45(Light Red)]. This intersection will be an indication that our Exit point is nearby
Wait for Indicator Set A to cross each other [EMA 20(Dark Green) crosses EMA 55(Dark Red)]. This intersection point will be considered to identify our exact Exit point. Lets say this is Point B
Now look at the candle that is formed after Point B, wait for that candle to close and then note down the price point of Low made by that candle. This Low (Lets assume it to be Y) will be our Exit Point
Safe Traders can Exit there positions the moment any of our next candlesticks crosses below Point B while Risky Traders can wait for a candlestick to give closing below this Point B and the moment it happens they can Exit there positions

Negative Trend


*Identify the point where Indicator Set B crosses each other [EMA 25(Light Green) crosses EMA 45(Light Red)]. This intersection will be an indication that our Entry point is nearby
Wait for Indicator Set A to cross each other [EMA 20(Dark Green) crosses EMA 55(Dark Red)]. This intersection point will be considered to identify our exact Entry point. Lets say this is Point A
Now look at the candle that is formed after Point A, wait for that candle to close and then note down the price point of Low made by that candle. This Low (Lets assume it to be X) will be our Entry Point but we will not enter at this moment
Wait for a candlestick that closes below Level X wherein the High made by that candlestick should be below the price point X and the moment candle closes and fulfils this condition we will enter into that trade
After entering the trade, we will keep a watch at our EMA Lines to find our Exit point and that will be at a place where these lines will again cross each other
Wait for Indicator Set B to cross each other [EMA 25(Light Green) crosses EMA 45(Light Red)]. This intersection will be an indication that our Exit point is nearby
Wait for Indicator Set A to cross each other [EMA 20(Dark Green) crosses EMA 55(Dark Red)]. This intersection point will be considered to identify our exact Exit point. Lets say this is Point B
Now look at the candle that is formed after Point B, wait for that candle to close and then note down the price point of High made by that candle. This High (Lets assume it to be Y) will be our Exit Point
Safe Traders can Exit there positions the moment any of our next candlesticks crosses above Point B while Risky Traders can wait for a candlestick to give closing above this Point B and the moment it happens they can Exit there positions


I hope this Indicator will provide you with useful inputs and helps you in your Intraday Trades

Wishing you all the best

Happy Trading..!