How To Trade Like A Professional Trader – Investing.com India

In this post, I’ll discuss with you “how to create a Best Trading setup” by using some technical oscillator and indicator so that you will be able to generate a consistent return from the market. Moreover, this setup will help you to improve your trade much faster while setting you apart from the crowd.

To set apart from the crowd you need to have a different approach in the market. To different approach here means you have to know how the oscillator and indicator work in a different time frame. Apart, from that to become a successful trader your setup should have a mixture of some leading and lagging indicator so that you can trade both intraday and swing movements in the market. So let’s begin

How professionals compose his Trading chart

We often listen from the experts that you should trade in the direction of the trend. Also, to decide the trend professionals use a combination of three exponential moving averages which is 13,21 and 34 in a daily chart. For Uptrend, Ema should have correct order towards upside which means 13 > 21 > 34 and for Downtrend, Ema should have correct order towards downside which means 13

You see in the below-provided image, in this image you can see the blue line is 13 ema, the orange line is 21 ema and the pink line is 34 ema. ( Image 1,2 )

Image 2

From this method, professional easily differentiate the Uptrending and Downtrending stocks from the market. Furthermore, many amateur traders say that it’s difficult to execute the trade timely but isn’t that reality. The fact is that to execute the trade timely, professionals use a combination of two Stochastics the first one is 4,1 (Fast) and the second one is 5,2 (Slow) in a daily chart. They use fast stochastics (4,1) to aim the market and the slow stochastics (5,2 ) to shoot the market. The aim here means these stocks are about to move and shoot here means its time to execute the trade.

For more details let go through the below-given chart.( Image 3 )

Image 3

How to select the stocks

For long:- Stocks should have in the positive coma 13 > 21 > 34 and the Stochastics

4,1 is below 20 levels.

For short:- Stocks should have in the negative coma 13

4,1 is above 80 levels.

The Execution

Don’t chase the price let the price come to your execution zone, Where your Reward is greater than your risk. Once the experts aim the market for long as well as short using above technique they use slow stochastics 5,2 crossover to execute the trade. For buy trade stochastics 5,2 should have a bullish crossover and for sell trade stochastics 5,2 should have a bearish crossover and they keep stop loss as high and low of the previous candle.

You can go through the below-given chart. ( Image 4 )

Image 4

Conclusion:

The market likes to play with our nerves. It will do what it does best: shakes the most amount of monkeys off its branches. To do well in this field is to do everything differently. yes, you need to viable trading strategy and the risk management plan. If you follow this setup properly it will convert your trading statement in Green.

For Daily market update, you can connect with me on youtube and twitter by searching:- Equita Academy

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