[0:08]Hello everyone, welcome back to my YouTube channel. today in this video I will tell you about a very powerful tool which you call moving average. if you are beginners, new traders and want to refine your trading strategies with the help of moving averages. this video will be very interesting for all of you because I will tell you step by step everything about which time frame you have to use. which moving averages you have to use, the ones I use, so this video is going to be really interesting and educational as well. So first of all, you can relate it with gold, just like it's a gold chart. So you have to indicate, it's a gold chart and it's a web terminal of XNES. On this you can see that you are seeing indicators at the top, okay? You go to indicators at the top and type moving average, so I have already starred it, click on moving average multiple. Okay? In this way, multiple moving averages will appear on your chart. Right? What you have to do is go to its settings. After going to the settings, you have to see what inputs are coming in it, so instead of simple, I use exponential moving average. You have to apply exponential moving average, right? So its different periods are coming. Now you will see in the styles that its different styles are coming, so you uncheck all these styles, okay? Style number one, you make it white, plot number two, you make it orange, and plot number three, you make it red. Three moving averages have come here, right? Again you have to keep the method as exponential moving average, right? So we make period number one as five, period number two as two hundred. These are all the ones I use, okay? Two hundred, just for the confirmation purpose and exponential moving average has been applied to the main chart symbol, these plots I have told you, you don't need to apply precision. Right? Visibility on all time frames, you have seen the inputs, I have put them in, and on the styles, you have to keep the first three. You have to click OK on it, okay? So this way it will start showing you. Now, what you have to do is, which time frame you have to use for it? This is your 15 minutes time frame.
[2:45]Now, why 15 minutes time frame? Because we have three sessions in a day, in trading hours we have three sessions, we have Tokyo session, we have London session, we have the major one is NY session, New York session, okay? So now I will tell you some tips about how you can trade on a real chart. On what basis, on what evidence? Okay? Number one thing is if you are a scalper. Scalper means that in intraday, many traders are doing scalping only, on an intraday basis, they take small trades and exit from them. Let's say if you are a scalper, then no strategy in the world, you have to refine it, it's for refinement. If you have learned market structure, then these things will be very easy for you. Whether you are a beginner, you do professional trading, anyone, these are your helping tools. Indicators are your helping tools, they help you to improve your trading, okay? Do not fully rely on these indicators. So here you can see that I have a normal chart here, it's a gold chart, 15 minutes time frame, the market has made a low and the highest point. Now how do I know that this is low? If you start looking at it from behind, then you will see it like this here, exactly at the top I am taking it here. So if you look at the top here, then you have a low and a highest point here. Now you want to scalp a sell in it. So you have to see in it that when the market is going to the highest point, this white moving average that you are seeing here, above this area, this white moving average will be supporting it. And the moment the market crossed it from here, again the market went to the bullish side and closed on this moving average. Minimum, minimum, at least two candles' closing should be below this moving average or maximum three. Three is mandatory, only for scalping. How much is scalping?
[4:51]Let's say your candle has closed, now you have taken an entry here. I will give you an example here that you have taken an entry above this candle. Three moving average, three candles have closed below the moving average. The next second candle will be, above it you have given the SL, okay? Here your small SL has been formed. Now its TP will be, you have to keep it as much as its price is here, which means your SL here is 100 pips and its TP is 240 pips here. Which time frame is it? 50 minutes. It can be further refined to five minutes in the same way, but when your grip is on 15 minutes, then you have to shift to five minutes. Other than that, I will not recommend you for this. If you want to gain good grip on it, only the condition is that. Okay? After that, you have to see here that the 200 moving average will help you in what thing? I have taught you five EMA, okay? Two hundred, if you want to go with the trend, then you always have to look at the crossover of the 200, which is red here, and the orange one. This is your crossover here, okay?
[6:03]After the crossover, the market has given a low here, made a low here, right? Where did it go to retest? Your crossover should be 50 and 200. I will also write it here. 50 EMA, okay? 50 EMA and then we have 200 EMA. The crossover of these two must happen. These points you can even write down with you so that you remember these things later. 200's crossover happened, the market made a low, when the market came to retest again. When the market comes to its SBR, support become resistance, meaning structure is most important, right? So when the market comes to your SBR zone here to retest, then you have to see if the market has given rejection above 50? On the retest of 50, the market can also go up to 200, it's fine. But it has given rejection from 50 and EMA five will confirm it that it has given a closing below EMA five, okay?
[7:07]Here you will see one, two, three, four candles. As soon as it has given closing below it, you have to open your sell position from here and above EMA five, you have to give your SL. Let's say it's 100 pips.
[7:22]And the nearest support you have will be your TP there. Up to that area, you have to book your TP there and exit from the market, okay? Because 200's crossover has happened, the market is making lower highs and lower lows, okay? After that, EMA 50 has retested it, and after retesting, the market has come to the downside. Okay? Again, the market will go to its SBR zone, and you have to see here that if the market has again given a retest on this area, again given a retest, okay? After again giving retest, whichever candle of yours, EMA five, confirmation always EMA five, retest or below that EMA 50, this is mandatory, okay? You can also see the breakout here, but still you have to wait that after the breakout, again if it crosses, because its structure is important, right? Along with the structure, this crossing of EMA, after that you saw that it ranged here, SBR support made a small one, it pulled back, it ranged here, it gave a breakout. In the range, you are not getting confirmation, even if it's below EMA 50. As soon as the market closed below it, then you have to execute a sell position here on the retest. Your 100, normally 100 pips will be your TP, which is the current situation of gold. And whatever its previous low will be, or 100 pips, then at least 200 pips should be your TP here, okay? If you look here that the market also crossed, meaning counter trade, what is called? So in what thing will you get counter trade? In what thing will you get it, in which moving average's cross? That is 50 and five, here you will see that the crossover of 50 and five should happen, then the EMA 200 should be its TP.
[9:05]This is when you will be trading against the counter trend, against the trend. Your trend is bearish, you are going against the trend and you are looking at whose crossover? 50 and five, okay? As soon as the engulfing candle closed, after closing you measured it that your SL will be how much, so when you measured it, you took an entry on the next candle and your SL will be above EMA 50 and five. And the nearest low you have will be the support area, that will be your TP there. Up to that area, you have to book your TP there and exit from the market, okay?
[9:43]You always have to keep an eye on the crossover. Here the market is going to the sell side. So as the market gives you rejections here, below EMA, EMA 200 is your trend based.
[10:56]Below EMA 200, the market is going to the sell side, okay? After that, what did you see here that the market made a low, made a high, then made a low, and after that it made a higher high. Which means that above this area, here you are seeing a crossover, okay? Above this area, you are seeing a crossover, and after seeing the crossover, even the candle's closing is above EMA five. Whose crossover are you seeing? Towards the bullish side, if you are seeing it, then you are seeing the crossover of EMA 50 and EMA 200 again, okay? After that, what did you do? As soon as your crossover happens, you executed an entry here, and let's say your SL here will be 84 pips, your SL will be formed here, okay, if I'm not mistaken. Your SL is forming this much, and after that you can see that as long as it remains held, as long as your EMA 200 and EMA 50 remain held, you can hold it, okay? Because if you don't know anything about what the major trend is going on, is it bearish, is it bullish, what is going on, I don't understand anything, then you can hold them like this, okay? Now, if we look at the recent here, if we look at the very latest price action, then the market here is kind of ranging, I will also tell you this. Now, the market has crossed here, whose has it crossed here, you can see, EMA 50 and EMA five's. Which means that the gold pair will go sell up to here now. Where should it come to sell? It should come to this support. If EMA 50 and EMA 200 also crossover at this time, then the market can, it's possible, go down to its support and go to retest. When your crossover has to happen, it is very important that if the crossover does not happen, then after retesting, the market can bounce back again and can also range here. Where not to use this strategy? This strategy, you should not use it in this type of range at all because here you are seeing breakouts, this strategy will always give you a lot of benefit in trend-based. Now you see gold, this is its chart. Let's say I will show you a small demonstration in gold here that if you open a sell position from here, then your target should be above EMA 50, and your TP should be the nearest support here. Now you are getting some confirmation that gold is going towards breakout, it has not done it yet. If it makes a bearish candle, then your confirmation will be below EMA five, and sell will be your nearest support. So this whole video I have made for you, now you have to do its backtesting, and along with backtesting, you people must practice it on demo. You can do it on demo, you can make a small live account and do it in that, in both cases you have to practice it, okay? Because in practice you will know its percentage. When I learned this strategy and implemented it, its percentage was between 69 to 73, 74 percent, still, and in that profitability was more. When the market goes in trend, you get a very good profit in that.
[14:56]When the market comes in this way in a range, then you should avoid trading in that a little, because every day it's not like this strategy will give you profit, okay?
[15:18]When it's in range, obviously nothing will work for you, whether it's a structure or anything else, in range most traders mostly incur losses.
[15:28]So to avoid that, you people use this strategy with the trend. This will be my recommendation to you, do backtesting, and Insha'Allah whatever your results are, you people must share them with us. And at the end of this video, you people must comment on how you liked this video. I have told you a lot of informative things. I hope you will definitely benefit a lot from this. Take great care of yourselves. Insha'Allah, I will meet you all in the next video. Take care and Allah Hafiz.
