EP 25: How to Use the 9 EMA Scalping Strategy – Chart Reading & Scalping Basics

[00:06] episode is going to be very special because in today's episode I am going to teach my younger brother how to do scalping exactly. The Which is one of the best strategies for scalping? So if you want to know

[00:22] how to use the 9 EMA scalping strategy ? Does it have rules? So this video is for you guys because I have taught brother with live example. One of our stop losses also went down. Then our target was achieved and our loss was

[00:34] also covered up with the same scalping strategy. So I have made a very real and practical video which will help you in learning scalping in the right way and I thought why not teach scalping to my brother also because scalping is

[00:47] very easy. It is very simple. But you will have to strictly follow some of its rules. All those rules are explained in today's video. Are you ready brother? Yes. So today let us teach him scalping and gradually he will also start doing scalping.

[01:00] in the description box. You can go there and subscribe to his channel where he will upload videos of his daily trades and tell you Rest of the people who are new to this channel, please subscribe to the channel. Press the bell notification

[01:14] button and watch the full video. So brother, the strategy I am going to tell you today is scalping strategy. What does scalping mean? Ah, I have to scalp and leave in a few minutes. That means our quick move, for example, if

[01:26] I have to scalp, then I scalped like this. I put a small SL set the target till the nearest support or resistance point. Scalping curry out. Right? Now So I will again make a short trade from here. I will place a small SL here

[01:41] and a small target till the next support and from here I will me tell you the strategy. First let's see if we have any I feel like some scalping is going on. Into scalper mode

[01:54] and 6500. So let's see. Take this. So we why am I making this scalping? How am I making it? I will try to

[02:08] explain it to you. Let's first weigh this scalping trade. In all this, whenever we a stop loss zone. Right? There should be a target zone. How far are we targeting and when do we have to leave the trade? Right? So this is

[02:22] scalping because here I put a small quantity. I waited for a candle to getting a good candle from here. And an EMA is used behind this candle. And today we are going to see the strategy of EMA and what exactly is

[02:38] that strategy? How does it work? And how do we get out by scalping it? So EMA is what I'm talking about. So right now I have a trade going on here. Let's see, SL will go into this, target whatever it will be, we leave it here. Okay, so

[02:51] scalping is what we call it, where we work within the market to capture quick momentum so that we can That's why I have planned a stop loss around a swing low.

[03:05] why scalping is happening here? Or why are you scalping? So for this Which is which EMA? No 9 EMA, I have applied this. This blue colored line which you are seeing on the screen. This is the 9 EMA line. Now look simple, when

[03:21] you have learnt many things in the market. Now if you want to do scalping or trade options in the market, then when the naked person is buying the options, you cannot sit long. You cannot hold the position for long.

[03:34] Fluctuation. There is fluctuation. Options sit here and look at the spot. But what if the option price remains stuck at this point? Premium Melt will become Premium Melt.

[03:47] , if you want to work by looking at options , if you want to trade in options, then the best thing is to do scalping. Scalp quietly and leave. Ok? So here are some rules of strategy. First of all, this is a nine EMA strategy.

[04:01] 9 EMA Scalping Strategy. Right? In this we are using only one indicator which is 9 EMA. And that is only and only for scalping. In this we are not planning any long term Only small trades but will be only scalping trades. Right?

[04:15] Only for directional. We have to see the direction in this. Either the market will go up or the market will go down. If we see it going up then we will call side. If it appears to be going down, we will put it on the put

[04:27] comes the time frame. Time frame 5 to 15 minutes. Ok? Meaning, scalping in 15 minutes does minutes is the ideal time. If you want to go down, there will be some small risk somewhere. Then we come to above 9 EMA, when the price is moving above 9 EMA, then we

[04:40] will scalp only on the call side, in spot, if the price is moving above 9 EMA in spot, then in which will we scalp in call, in spot, if the price is moving below 9 EMA, then in put, we will

[04:52] okay now how do we have to make the entry, whenever we make the entry, the price is moving above 9 EMA or below, for example, the price is moving above and bullish candle or a strong rejection candle which after testing at 9 EMA, rejects,

[05:07] rejects the side of the direction. Ok ? Then after that comes the same voice in reverse. If it rejects at 9 am and gives us a bearish candle or strong candle, after which the probability of momentum increases. Then

[05:21] comes the risk reward. At least try to take only 1:2 of the risk you are taking in the chart. There is no need to work 1:1 as it is not profitable. 1:2 is a more profitable setup.

[05:34] Try only on that because if you go for 1 initially then you will not be able to catch 1:2 3 in the long term. So start with 1:2 so that you can gradually reach 1:23. Right? Then we feel like taking a lot of trades. But you should

[05:48] not take more than two or three trades daily. Ok? Then comes the price above 9 EMA. If we have exit rule in it. For example, let us take a bullish trade. Taking bullish scalping. Right? So we are holding as long as the price is above the 9 EMA.

[06:05] price comes below 9 EMA, we have to close and exit there. Anyway, we don't have to think about what will happen or what will not. Our rule is that we are our decision should be based on that indicator only. Similarly, what will happen to us if we take a bearish

[06:18] strict exit rule is that in a bearish trade, if the candle goes above the 9 EMA and starts closing, you have to take an exit. Then after that comes a time called stop loss. Stop loss time

[06:30] refers to how long you will hold a trade. So if we are working in any trade for 5 minutes, we should not sit for more than 15 to 20 minutes or 25 minutes. It should not happen that brother, you keep sitting with it the whole day. You're trying to do it all day long.

[06:42] This should not happen. Ok? Did you understand the rules? Now let's look at this on the chart. Let's look at the chart to understand exactly what we are talking about and how it works. One thing is becoming clear on this chart, the and how it works. One thing is becoming clear on this chart, the line that I have given

[06:56] and this line which is made in it, this is our EMA line, which EMA is this? It is new. So whenever I am looking at the directional side,

[07:08] We are meeting. For example, here it meeting. For example, here it came above the 9 EMA. Closed above 9E. Look at this it came up. Clazzed. Good candle, a very small SL has to be formed here and the price should go up.

[07:23] became something like that. We again took nine year support here and went up. Now one thing is most important in this. The most important thing is that you have to come back within 15 minutes and

[07:35] You should have marked support and resistance levels on the 15 minute time frame. For example, there is a resistance zone from where the price came down, so I marked a resistance level here. You have to mark this support resistance in the same way as I taught you.

[07:48] Now there is a resistance level here, we have marked it because if we do not look at the support and resistance then there will be a problem because it is Now what is the support and resistance here? Here we have the

[08:03] nearest resistance and support that is coming. Then we have a from here we click and where is it? It is here somewhere too. This one too we have a support zone around this area. Right? So, in 15 minutes, we have to mark the

[08:19] support or resistance zones that are being formed. Here it is. because that is where price volatility will be created. That's why we saw a setup for me right in the beginning. We took the trade and placed an SL and right here it has

[08:34] placed its SL. So I am not saying that friend, he will definitely do the work 100%. But your stop losses will also come but your stop losses will Sir, two EMAs are installed. There are two EMAs here but forget that.

[08:48] 9 EMA. 9 EMA Pay. We will place it at 9 EMA. Because I say that look only at the spot. You can keep 9 and 20 EMA within the premiums but it will not support you much because the premium

[09:01] Right? So we took it here also. We saw support here and 9 EA came here, so no trade to be made here. But yes, what I was telling you is what do we have to do initially? Here

[09:13] support and resistance have to be marked on 15 minute time frame. Right? After marking the end 15 minute important support resistance levels. Like this one. What did we even have? There is resistance here. Look, this is where it came from. Right now we have

[09:28] this one coming next. There is one support which is exactly here at the pin point from where the price has risen. Then after this there is this one. This one. Ok? So resistance mark down in 15 minutes. Because 15 minute support resistance

[09:44] works very well. This was from here the price came down from here so this is one too. It came from here. Now we will shift it in 5 minutes. Yellow. Right? What happened just now? What rule did I tell you in the strategy just now? Exit rule.

[09:58] Exit. Exit. Our SL was stuck right there. We had placed our stop loss above the EMA, so We are here, right? So I am telling this live right now that I am trying to share the strategy in the live market that is going on right now.

[10:13] that I am trying to share the strategy in the live market that is going on right now. will tell you only when it is happening. So whichever user you are, whoever applies this, he will think that this is a very powerful strategy. It is a very strong strategy on the basis of which

[10:25] anything can be done, not a trend. SL goes and will always go. But the thing is that if you want to do quick scalping then you can do it. Now if I want to do made?

[10:40] After arrival we have to wait for the pullbak. Pullback I can see one thing that there is a resistance zone standing near me here mark this and keep it as to what is the nearest resistance coming to us

[10:53] coming from? Where should we take it ? You will have to develop this little understanding. If I take it here. However, this structure is well maintained. scalping spike may occur. But if you look here, the market is lying in a range.

[11:07] When we are in the range, we had told the directional strategy. What is directional. Meaning that when directions are going inside the market. When the can do scalping. It is not in the direction. If someone is stuck in the range then

[11:21] SL will go there. As we planned and went above 9E quietly gave SL. If you hold on too much and sit in hope, then it will melt, then premiums melt very badly. If the

[11:36] give SL below this. For example this is my SL. Here if I have planned a long trade. Here is my long position. It crossed above the 9 EMA. Took support. From inside this I remove a 20 EMA. Let me give you an example within just premium.

[11:52] remove a 20 EMA. Let me give you an example within just premium. How does the premium react? Look it went above the 9 EMA. Took support, support is visible from 9 EMA, we

[12:07] scalping, this gave itself a scalping move, now if you do not exit then this place, means if you did not exit at the right place then if you did not exit at the right place then

[12:24] we have to observe the premium very much because if the market is in the range the market is directional then premiums also remain strong. Be it a put or a is directional, premiums will remain stable. Will go in premium direction. If not, then

[12:40] we will see melting inside the premium. That is why we have to work with tight stop loss. Ok? And For example, look at this spike of the 9 EMA, a great scalping option. This is where we

[12:53] entered a short position. Price moved. Gave a pullback. After giving a pullback, the bearish candle will set a stop loss and the next support resistance that we will get, our target scalping will be done, now see, this is not the zone to trade here, but just for example,

[13:10] if this rejection candle closes above 9 EMA, then we can do a scalping here. A scalping trade can be made here. But we will have to wait for a good candle to close above it. Right? Now here also you will see that in today's market

[13:23] Right? Now here also you will see that in today's market this long position price went up. Where did this SL come from? It does not matter much whether this trade target is given or not.

[13:35] you will do scalping but you will not know the stop loss. So placing stop loss is most important. Stop loss entered quietly. It has to be built here below it. Quietly place a stop loss on the premium. If you do not place stop loss then this is

[13:49] Good stop loss not placed on the spot. Have to put it on the spot. Trade plan has to be made according to the spot. But there should be more observation on premium. Ok? For example, this candle is here. Right? And this is what call side

[14:03] scalping I saw. This is from the call side. So this one has to be made into a candle. Look carefully. This is where people make mistakes. This candle came to us bullish. So our trade that is being made is to be made somewhere here. This is what this one has.

[14:18] We should not look at this because if it stops for a while in the range, the premium will stops for a while in the range, the premium will melt on its own, so whatever we got in scalping within 5, 10, 15 minutes, 3 minutes, we got it, that means scalping within three candles,

[14:30] come out quietly because in scalping you cannot catch very big targets, I am saying you have to catch at least 1:2, but if there is a range amount then you will not get 1:2 and if two SLs go off back to back, then close the system

[14:42] because in scalping, if you again go into recovery mode, then you will have to face a lot of trouble, right now this is the market scenario here. It is now testing above the 9 EMA. And from here the rejection candle came but it could not

[14:55] this has created a range. Until then, let's look back at where the 9 EMA worked. It is not made anywhere here. The price went up. Went straight away. No pullback was made. Here's what it looks like. I want to do scalping.

[15:09] not made. Tested me. Then came this bearish candle. Then this came. Then come from here. Here it is, apply it. candle. Then this came. Then come from here. Here it is, apply it. to the resistance zone, yes, the candle closed above 9E. If you

[15:24] want to hold long, then exit. The close here is the exit. We have to do scalping. It went above 9E, could not close, came down. Scalping will be done. Because the rejection was taken from where, from the 9 EMA. Here, take this, your scalping is

[15:39] done. Tested the 9 EMA here as well. Which candle came, bearish or bearish? Hammer? What kind of candle, hammer? Hammer has to be broken. This is called breaking the hammer. This is shooting star. Shooting star.

[15:54] Sometimes a hammer is formed above. If you write this, then it has come till here, right? Shooting star and hanging band are formed above. If you understand, then these things should not be forgotten. Candles should always be remembered and see

[16:09] and it has to be formed somewhere. Scalping is done here. However, this market closed. From Scalping is done here. However, this market closed. From here we went long. This move and this is what here we went long. This move and this is what we have. Scalping is done. From here,

[16:22] tell me more and the price came down and got rejected. What has happened, we have a short What has happened, we have a short trade from here. This is what it is. You have to try to trade from here. This is what it is. You have to try to

[16:36] formed, if you do not see this then many SLs will be created, so in scalping we have to use a lot of we have to see a lot of things, now for example, this got trapped, now it comes down, from here it gets trapped above and crosses the candle below. So what do I see

[16:51] 9 EMA. from the 9 EMA. So I can plan a short trade from here. from the 9 EMA. So I can plan a short trade from here. Look at this now. However, one should not trade here in support. Look, from whom did you

[17:04] get rejection? from the 9 EMA. Now I want to wait for the candle close. And from here we can make a short trade. Because it tried to break above the 9 EMA. Should have taken a pullback and exited. It did not come out. Right? Right? So

[17:17] my logic behind it is that I can see that these are the nearest stop losses below. we okay? So I'm trying to trade in direction. Right? So that is why otherwise if you are a new trader then look

[17:32] near buy around support resistance you have got it. make an entry and accordingly I have to see the quantity, that is, brother, I have to see the quantity, that is, brother,

[17:47] We have to see how much margin I have. If we look at it blindly, here we have around 15%, if we close here then a stop loss of around 15% is created. Where is the rejection 9 coming from, but as per the rules, the trade will not be made here because it is

[18:03] standing at such a place where the trade will not be made, it can take support at all the supports, it can also break, that is, in a do or die situation, right then you will see it reacting to the resistance, reacting to the support, then only you have to focus on

[18:18] the trade, if it is revolving around that, then you will have a target near the trade, if I am making such a short trade, then I do not have a place for the target right now. Why? Because it is still on support. When it breaks, I have

[18:32] space here below the target. Then I will plan a small stop loss. Ok ? So such trades have to be planned. It has simple rules. Don't have to trade too much. Two to three trades have to be made. You have to take limited trades and try to

[18:47] So that you can know the levels and what is where. When making a trade around support, after taking support, let it take a pullback to 9 EMA and take support. Making trades around the resistance After taking the resistance, take a pullback to the 9 EMA and then

[19:03] make a trade on it. Only then if you make trades in these random middles then the stop losses will be very high. Ok? So this is a simple strategy which you have to trade on this strategy on your own. Ok? Now let's see

[19:17] if we can make any trade. Right? And right now taking reaction here. The 9 EMA is coming from the 9 EM. So let's try it. Hope so that you can leave now. So we have to

[19:32] keep our quantity limited. Let's try the same quantity in which we worked earlier. I was working on the same quantity. Yes. Ok. We made our SL. So I think we should have SL of the nearest swing. This could be

[19:47] This could be the SL zone and let's go for this we will have TP one because this is where it looks to me to go if it breaks low. So we can go for 1:2, meaning if our SL is ₹1 lakh then we will

[20:02] our SL is ₹1 lakh then we will need approximately around ₹1 lakh. Yes, here it is like this, so good amount of space below. Where did it come from? Because it comes from the 9 EMA. Rejection

[20:17] Because it comes from the 9 EMA. Rejection yes this is our SL directly above it on the right and because till now we do not have any risk reward till here. If I have to take a risk, I should take it in such a way that I get a good reward. So if I go till here then

[20:30] I have this TP one. TP One hits. If I am feeling because SL has already become a hit. What can I do to avoid taking too much loss Trail the stop loss from cost to cost. Ok? So this is also scalping.

[20:43] Now, even in such a small matter, the big players manage to get away with a good amount of scalping. Right? Now let's see what it does and wait for it to come down and give us a good scalping move. So first we

[20:55] will wait for the TP one. This is the TP one we have. So in the first trade we had a loss of around Rs 40-45,000. If it hits TP one will be covered up. Right? And there is a rule of scalping, when you are scalping, you always have to

[21:09] focus more on the loss side rather than how much profit I will get. quantity has increased, I have to focus more on the loss so that my loss is at least minimal. Ok? We will keep that in mind so that our SL goes down.

[21:23] See, this is what happens in scalping. If the quick move breaks the low once, it will take all the stop losses and come down very fast. We are waiting for that only. So let's see what this does. So our TP one is around 96, 97 and 98, as soon as the TP on was hit,

[21:38] trade which we took in the beginning of the video was SL. That SL will be our almost cover up. Looking at where this market stands right now, if we break from here then we have a huge reward against the risk. Meaning,

[21:51] if it comes down then we will get a great reward. Just hold it straight away. We are here, right? That if it turns, it will turn from here and if it falls, it will fall from here. Right? So we also have a good amount of

[22:07] support coming down here. And below I think this is what we have, then the level around 23400 should become the exact support for us. All right. So here we have almost TP one. And now what was our task? Next

[22:22] Trail SL. We will trail SL. We will trail SL. We have modified this. ₹15,000 24,000 and from here the price has started falling. We got a great scalping opportunity.

[22:36] So, our loss was also covered and after covering the loss we also made profit. So I understood 9 EMA well, how it works, how to do scalping. Isn't it because my TP one has arrived. My loss has been covered up. Should I

[22:51] take profits and go home or should I place my SL here on the cross. Ok? So there are two ways. Right? So now it depends on you that brother, how do I manage the trade from here. Do I have to take it from this trade after this? How to take it.

[23:04] ? That now nothing will go from my end. now we will not get anything from our pocket. Meaning now we are in profit. Our loss has also been covered. So in the same way, it is now standing at such a point from where if it falls, it will

[23:19] make a lot of money. So scalping is not just about scalping. You can also use the scalping technique to plan for big traders. So that you first set your target at 1:12, if you start

[23:33] getting profit then trail it and leave it long. Ok? So I hope you have understood And I hope guys you also understand how scalping is done. Isn't it can book it as well. But I showed you that our loss was also covered up.

[23:47] SL was also achieved on the same strategy but target was also achieved on the same strategy. With the same quantity and same capital, the ratio against it was 1:2, so our first loss was also covered up. And we are still making profits to that extent. Ok? So this is how we have to do

[24:00] scalping on 9 EMA. So I hope guys you have understood how to scalping on 9 EMA. Now why did we take a trade at the beginning of this video ? Because I scalp on that strategy. So I saw it and took the trade. Stop loss

[24:12] shown to you. But after that, I again got a trade on the same strategy in the same direction, so and after that he also covered up our SL. Gave it to us at a profit. And our risk reward of 1:3 was also achieved for us. So this is how trading is done.

[24:25] We do scalping but we do not place stop loss and do Due to which we suffer huge losses in scalping and we end up doing unnecessary order to cover up the losses. So once you learn to place SL, book losses,

[24:39] then in scalping you will gradually learn to cover up your losses and gradually become a profitable scalper. Right? But for that you will have to work hard. You will have to follow the rules strictly. If you enjoyed the video

[24:51] and wait for Bhai's upcoming videos where he will apply what he has learned and show you how he trades.