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Módulo 2 - Análise Técnica

Capítulo 13

Médias Móveis
897

Todos nós aprendemos sobre médias na escola, a média móvel é apenas uma extensão disso. As médias móveis
são indicadores de tendência e são frequentemente usadas devido à sua simplicidade e eficácia. Antes de
aprendermos as médias móveis, vamos recapitular rapidamente como as médias são calculadas.

Suponha que 5 pessoas estejam sentadas em uma bela praia ensolarada, desfrutando de uma bebida engarrafada
gelada. O sol é tão brilhante e agradável que cada um deles acaba bebendo várias garrafas da bebida. Suponha
que a contagem final seja algo como isto:

Sim. Não Pessoa Nº de Garrafas

01 UMA 07
02 B 05
03 C 06
04 D 03
05 E 08
Nº total de garrafas consumidas 29

ª
Assumir uma 6 pessoa caminha para descobrir 29 garrafas de bebidas espalhadas eles. Ele pode ter uma noção
rápida de "aproximadamente" quantas garrafas cada uma delas consumiu dividindo [o número total de
garrafas] por [número total de pessoas] .

Nesse caso, seria:

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= 29/5
= 5,8 garrafas por cabeça.

Portanto, a média neste caso nos diz aproximadamente quantas garrafas cada pessoa consumiu. Obviamente,
poucos teriam consumido acima e abaixo da média. Por exemplo, a Pessoa E bebeu 8 garrafas de bebida, muito
acima da média de 5,8 garrafas. Da mesma forma, a pessoa D bebeu apenas 3 garrafas de bebida, muito abaixo
da média de 5,8 garrafas. Portanto, a média é apenas uma estimativa e não se pode esperar que seja preciso.

Estendendo o conceito às ações, aqui estão os preços de fechamento da ITC Limited nos últimos 5 pregões. O
último fechamento médio dos últimos cinco dias seria calculado da seguinte forma:

Encontro Preço final

14/07/14 344,95
15/07/14 342,35
16/07/14 344,20
17/07/14 344,25
18/07/14 344,0
Total 1719,75

= 1719.75 / 5
= 343.95

Portanto, o preço médio de fechamento do ITC nos últimos 5 pregões é de 343,95.

13.1 - A média 'móvel' (também chamada de média móvel simples)

Considere uma situação em que deseja calcular o preço médio de fechamento da Marico Limited nos últimos 5
dias . Os dados são os seguintes:

Encontro Preço final

21/07/14 239,2
22/07/14 240,6
23/07/14 241,8
24/07/14 242,8
25/07/14 247,9
Total 1212,3

= 1212,3 / 5
= 242,5

Portanto, o preço médio de fechamento do Marico nos últimos 5 pregões é de 242,5

th º º
Avançando, no dia seguinte, ou seja, 28 de julho (26 e 27 foram sábado e domingo, respectivamente), temos
nd rd ª ª ª
um novo ponto de dados. Isto implica agora o 'novo' mais 5 dias seria 22 , 23 , 24 , 25 e 28 .
Eliminaremos o ponto de dados pertencente ao dia 21, pois nosso objetivo é calcular a média mais recente de 5
dias.

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Encontro Preço final

22/07/14 240,6
23/07/14 241,8
24/07/14 242,8
25/07/14 247,9
28/07/14 250,2
Total 1223,3

= 1223,3 / 5
= 244,66

Portanto, o preço médio de fechamento do Marico nos últimos 5 pregões é de 244,66

th
Como você pode ver, nós incluímos os dados mais recentes (28 de julho), e descartados os dados mais antigos
st th th nd
(21 de julho) para calcular a média de 5 dias. Em 29 , que incluiria 29 de dados e excluir 22 dados, em
th º rd
30 que incluiria 30 ponto de dados, mas eliminar 23 de dados, assim por diante e assim por diante.

Então, basicamente, estamos migrando para o ponto de dados mais recente e descartando o mais antigo para
calcular a média mais recente de 5 dias. Daí o nome "móvel" médio!

No exemplo acima, o cálculo da média móvel é baseado nos preços de fechamento. Às vezes, as médias móveis
também são calculadas usando outros parâmetros, como alto, baixo e aberto. No entanto, os preços de
fechamento são usados principalmente pelos comerciantes e investidores, pois reflete o preço pelo qual o
mercado finalmente se acalma.

As médias móveis podem ser calculadas para qualquer período de tempo, de minutos, horas a anos. Qualquer
período de tempo pode ser selecionado no software de gráficos com base em seus requisitos.

Para aqueles familiarizados com o Excel, aqui está uma captura de tela de como as médias móveis são
calculadas no MS Excel. Observe como a referência da célula se move na fórmula média, eliminando a mais
antiga para incluir os pontos de dados mais recentes.

Referência celular Encontro Fechar Preço Média de 5 dias Fórmula Média

D3 1-jan-14 1287,7
D4 2-jan-14 1279,25
D5 3-jan-14 1258.95
D6 6-jan-14 1249,7
D7 7-jan-14 1242,4
D8 8-jan-14 1268,75 1263,6 = MÉDIA (D3: D7)
D9 9-jan-14 1231,2 1259,81 = MÉDIA (D4: D8)
D10 10-jan-14 1201,75 1250,2 = MÉDIA (D5: D9)
D11 13-jan-14 1159,2 1238,76 = MÉDIA (D6: D10)
D12 14-jan-14 1157,25 1220,66 = MÉDIA (D7: D11)
D13 15-jan-14 1141,35 1203,63 = MÉDIA (D8: D12)
D14 16-jan-14 1152,5 1178.15 = MÉDIA (D9: D13)
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D15 17-jan-14 1139,6 1162,41 = MÉDIA (D10: D14)

D16 20-jan-14 1140,6 1149,98 = MÉDIA (D11: D15)
D17 21-jan-14 1166,35 1146,26 = MÉDIA (D12: D16)
D18 22-jan-14 1165,4 1148,08 = MÉDIA (D13: D17)
D19 23-jan-14 1168,25 1152,89 = MÉDIA (D14: D18)

Como é evidente, a média móvel muda à medida que o preço de fechamento é alterado. Uma média móvel
conforme calculada acima é chamada de 'Média Móvel Simples' (SMA). Como o calculamos de acordo com os
últimos 5 dias de dados, ele é chamado de SMA de 5 dias.

As médias para o dia 5 (ou pode ser algo como 5, 10, 50, 100, 200 dias) são então unidas para formar uma linha
curva suave conhecida como linha média móvel e continua a se mover conforme o tempo avança.

No gráfico mostrado abaixo, sobreponho um SMA de 5 dias sobre o gráfico de velas do ACC.

Então, o que uma média móvel indica e como ela é usada? Bem, existem muitas aplicações de média móvel e
em breve irei introduzir um sistema de negociação simples com base nas médias móveis. Mas antes disso, vamos
aprender sobre a média móvel exponencial.

13.2 - A média móvel exponencial

Considere os pontos de dados usados neste exemplo,

Encontro Preço final

22/07/14 240,6
23/07/14 241,8
24/07/14 242,8
25/07/14 247,9
28/07/14 250,2
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Total 1214,5

Quando se calcula a média desses números, há uma suposição não declarada. Estamos essencialmente dando a
nd
cada ponto de dados a mesma importância. Ou seja, estamos assumindo que o ponto de dados em 22 de julho
º
é tão importante como o ponto de dados em 28 de julho. No entanto, quando se trata de mercados, isso nem
sempre pode ser verdade

Lembre-se da suposição básica da análise técnica - os mercados descontam tudo. Isto significa que o mais
th
recente de preços que você vê (o dia 28 de julho) desconta toda a informação conhecida e desconhecida. Isto
th th
implica também o preço em 28 é mais sagrado do que o preço em 25 .

Passando por isso, gostaríamos de atribuir peso aos pontos de dados com base na 'novidade' dos dados. Portanto,
th th th
o ponto de dados em 28 julho recebe o maior weightage, 25 julho recebe o segundo maior weightage, 24
rd
julho recebe o 3 mais alto, e assim por diante.

Ao fazer isso, eu essencialmente dimensionei os pontos de dados de acordo com sua novidade - o ponto de
dados mais recente recebe a atenção máxima e o ponto de dados mais antigo recebe menos atenção.

A média calculada nesse conjunto de números em escala nos fornece a Média Móvel Exponencial (EMA). Pulei
deliberadamente a parte do cálculo da EMA, simplesmente porque a maioria do software de análise técnica nos
permite arrastar e soltar a EMA nos preços. Portanto, focaremos a aplicação da EMA em oposição ao seu
cálculo.

Aqui está um gráfico da Cipla Ltd. Plotamos uma SMA de 50 dias (preta) e uma EMA de 50 dias (vermelha) nos
preços de fechamento da Cipla. Embora a SMA e a EMA tenham um período de 50 dias, você pode notar que a
EMA é mais reativa aos preços e, portanto, fica mais próxima do preço.

A razão pela qual a EMA é mais rápida em reagir ao preço atual de mercado é porque a EMA dá mais
importância aos pontos de dados mais recentes. Isso ajuda o comerciante a tomar decisões comerciais mais
rápidas. Por esse motivo, os comerciantes preferem o uso da EMA ao invés da SMA.

13.3 - Uma aplicação simples de média móvel

A média móvel pode ser usada para identificar oportunidades de compra e venda com mérito próprio. Quando o
preço das ações negocia acima do seu preço médio, significa que os traders estão dispostos a comprar as ações a
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um preço superior ao seu preço médio. Isso significa que os traders estão otimistas com o aumento do preço das
ações. Portanto, deve-se considerar as oportunidades de compra.

Da mesma forma, quando o preço das ações é negociado abaixo do preço médio, isso significa que os traders
estão dispostos a vender as ações a um preço menor que o preço médio. Isso significa que os comerciantes são
pessimistas sobre o movimento do preço das ações. Portanto, deve-se considerar as oportunidades de venda.

Podemos desenvolver um sistema de negociação simples com base nessas conclusões. Um sistema de
negociação pode ser definido como um conjunto de regras que ajudam a identificar pontos de entrada e saída.

Agora, tentaremos definir um desses sistemas de negociação com base em uma média móvel exponencial de 50
dias. Lembre-se de que um bom sistema de negociação fornece um sinal para você negociar e um sinal para
encerrá-lo. Podemos definir o sistema de negociação de média móvel com as seguintes regras:

Regra 1) Compre (durar) quando o preço de mercado atual ficar maior que a EMA de 50 dias. Depois de longo,
você deve permanecer investido até que a condição de venda necessária seja satisfeita

Regra 2) Saia da posição longa (quadrado) quando o preço de mercado atual ficar menor do que a EMA de 50
dias

Aqui está um gráfico que mostra a aplicação do sistema de negociação nos cimentos Ambuja. A linha preta no
gráfico de preços é a média móvel exponencial de 50 dias.

Começando pela esquerda, a primeira oportunidade de compra teve origem em 165, destacada nas paradas como
B1 @ 165. Observe que, no ponto B1, o preço das ações subiu para um ponto superior à EMA de 50 dias.
Portanto, de acordo com a regra do sistema de negociação, iniciamos uma nova posição longa.

Seguindo o sistema de negociação, continuamos investindo até obter um sinal de saída, que finalmente
chegamos a 187, marcado como S1 @ 187. Esse comércio gerou um lucro de Rs.22 por ação.

O próximo sinal a ser comprado chegou a B2 @ 178 , seguido por um sinal de quadrado em S2 @ 182. Este
comércio não foi impressionante, pois resultou em um lucro de apenas Rs.4. No entanto, o último comércio, B3
@ 165 , e S3 @ 215 foi bastante impressionante, resultando em um lucro de Rs.50.

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Aqui está um rápido resumo dessas operações com base no sistema de negociação praticado:

Sim. Não Comprar Preço Preço de venda Ganho / perda % Retorna

01 165 187 22 13%
02 178 182 04 2,2%
03 165 215 50. 30%

nd
A partir da tabela acima, é muito claro que os primeiros e últimos negócios eram rentáveis, mas o 2 comercial
st rd
não era tão rentável. Se você inspecionar por que isso aconteceu, é evidente que durante o 1 ea 3 comércio,
nd
o estoque foi trending mas durante o 2 trocar o estoque se mudou para o lado.

Isso nos leva a uma conclusão muito importante sobre as médias móveis. As médias móveis funcionam
brilhantemente quando há uma tendência e não são executadas quando o estoque se move lateralmente. Isso
basicamente significa que a 'Média móvel', na sua forma mais simples, é um sistema que segue as tendências.

Da minha própria experiência pessoal de negociação com base em médias móveis, notei algumas características
importantes:

1. As médias móveis fornecem muitos sinais de negociação (compra e venda) durante um mercado lateral. A
maioria desses sinais resulta em lucros marginais, se não em perdas
2. No entanto, geralmente um desses muitos negócios resulta em uma alta massiva (como a negociação B3
@ 165 ), levando a ganhos impressionantes
3. Seria muito difícil separar o grande vencedor dos muitos pequenos negócios
4. Portanto, o comerciante não deve ser seletivo em termos de seleção de sinais sugeridos pelo sistema de
média móvel. De fato, o comerciante deve negociar todos os negócios que o sistema sugere
5. Lembre-se de que as perdas são mínimas em um sistema de média móvel, mas que 1 grande comércio é
bom o suficiente para compensar todas as perdas e pode gerar lucros suficientes
6. O comércio com fins lucrativos garante que você esteja na tendência enquanto ela durar. Às vezes até
vários meses. Por esse motivo, o MA pode ser usado como proxy para identificar idéias de investimento
de longo prazo
7. A chave do sistema de negociação da MA é aceitar todas as negociações e não julgar os sinais gerados
pelo sistema.

Aqui está outro exemplo de BPCL, onde o sistema MA sugeriu várias operações durante o mercado lateral,
porém nenhuma delas foi realmente lucrativa. No entanto, o último comércio resultou em um lucro de 67% em
cerca de 5 meses.

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13.4 - Sistema de cruzamento de média móvel

As its evident now the problem with the plain vanilla moving average system is that it generates far too many
trading signals in a sideway market. A moving average crossover system is an improvisation over the plain
vanilla moving average system. It helps the trader to take fewer trades in a sideways market.

In a MA crossover system, instead of the usual single moving average, the trader combines two moving
averages. This is usually referred to as ‘smoothing’.

A typical example of this would be to combine a 50 day EMA, with a 100 day EMA. The shorter moving
average (50 days in this case) is also referred to as the faster moving average. The longer moving average (100
days moving average) is referred to as the slower moving average.

The shorter moving average takes lesser number of data points to calculate the average and hence it tends to
stick closer to the current market price, and therefore reacts more quickly. A longer moving average takes more
number of data points to calculate the average and hence it tends to stay away from the current market price.
Hence the reactions are slower.

Here is the chart of Bank of Baroda, showing you how the two moving averages stack up when loaded on a
chart.

As you can see, the black 50 day EMA line is closer to the current market price (as it reacts faster) when
compared to the pink 100 day EMA (as its reacts slower).

Traders have modified the plain vanilla MA system with the crossover system to smoothen out the entry and exit
points. In the process, the trader gets far fewer signals, but the chances of the trade being profitable are quite
high.

The entry and exit rules for the crossover system is as stated below:

Rule 1) – Buy (fresh long) when the short term moving averages turns greater than the long term moving
average. Stay in the trade as long as this condition is satisfied

Rule 2) – Exit the long position (square off) when the short term moving average turns lesser than the longer
term moving average

Let us apply the MA crossover system to the same BPCL example that we looked at. For ease of comparison, I
have reproduced the BPCL’s chart with a single 50 day MA.

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Notice, when the markets were moving sideways, MA suggested at least 3 trading signals. However the 4th trade
was the winner which resulted in 67% profit.

The chart shown below shows the application of a MA crossover system with 50 and 100 day EMA.

The black line plots the 50 day moving average and the pink line plots the 100 day moving average. As per the
cross over rule, the signal to go long originates when the 50 day moving average (short term MA) crosses over
the 100 day moving average (long term MA). The crossover point has been highlighted with an arrow. Please do
notice how the crossover system keeps the trader away from the 3 unprofitable trades. This is the biggest
advantage of a cross over system.

A trader can use any combination to create a MA cross over system. Some of the popular combinations for a
swing trader would be:

a. 9 day EMA with 21 day EMA – use this for short term trades ( upto few trading session)
b. 25 day EMA with 50 day EMA – use this to identify medium term trade (upto few weeks)
c. 50 day EMA with 100 Day EMA – use this to identify trades that lasts upto few months
d. 100 day EMA with 200 day EMA – use this to identify long term trades (investment opportunities), some
of them can even last for over a year or more.

Remember, longer the time frame the lesser the number of trading signals.

Here is an example of a 25 x 50 EMA crossover. There are three trading signals that qualify under the crossover
rule.

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Needless to say, the MA crossover system can also be applied for intraday trading. For instance one could use
the 15 x 30 minutes crossover to identify intraday opportunities. A more aggressive trader could use 5 x 10
minute crossover.

You may have heard this popular saying in the markets – “The trend is you friend”. Well, the moving averages
help you identify this friend.

Remember, MA is a trend following system – as long as there is a trend, the moving averages works brilliantly.
It does not matter which time frame you use or which cross over combination you use.

Key takeaways from this chapter

1. A standard average calculation is a quick approximation of a series of numbers
2. In a average calculation where the latest data is included, and the oldest is excluded is called a Moving
Average
3. The simple moving average (SMA) gives equal weightage to all data points in the series
4. An exponential moving average (EMA) scales the data according to its newness. Recent data gets the
maximum weightage and the oldest gets the least weightage
5. For all practical purposes, use an EMA as opposed to SMA. This is because the EMA gives more
weightage to the most recent data points
6. The outlook is bullish when the current market price is greater than the EMA. The outlook turns bearish
when the current market price turns lesser than the EMA
7. In a non trending market, moving averages may result in whipsaws thereby causing frequent losses. To
overcome this a EMA crossover system is adopted
8. In a typical crossover system, the price chart is over laid with two EMAs. The shorter EMA is faster to
react, while the longer EMA is slower to react
9. The outlook turns bullish when the faster EMA crosses and is above the slower EMA. Hence one should
look at buying the stock. The trade lasts upto a point where the faster EMA starts going below the slower
EMA
10. The longer the time frame one chooses for a crossover system, the lesser the trading signals.

Module 2

Chapters

1. Background
2. Introducing Technical Analysis
3. The Chart Types
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4. Getting Started with Candlesticks

5. Single Candlestick patterns (Part 1)
6. Single Candlestick patterns (Part 2)
7. Single Candlestick patterns (Part 3)
8. Multiple candlestick patterns (Part 1)
9. Multiple Candlestick Patterns (Part 2)
10. Multiple Candlestick Patterns (Part 3)
11. The Support and Resistance
12. Volumes
13. Moving Averages
14. Indicators (Part 1)
15. Indicators (Part 2)
16. The Fibonacci Retracements
17. The Dow Theory (Part 1)
18. The Dow Theory (Part 2)
19. The Finale – Helping you get started
20. Supplementary Notes 1
21. Interesting features on TradingView
22. The Central Pivot Range

897 comments

1. jagadeesh says:
November 16, 2014 at 6:04 am

Hello Sir,
First of all thank you so much for what you guys are doing .
I have a doubt.Can i select 9×21 crossover system on 5min. chart for intraday opportunities?

Reply

Karthik Rangappa says:

November 17, 2014 at 6:09 am

Thanks

Yes, you can use a 9 x 21 on a 5 minute candle.

Reply

ravi shankar says:

June 2, 2017 at 2:29 am

I have a one question regarding use MA crossover system how its work and how we can find
call . in both line.. for intraday.

Reply

Karthik Rangappa says:

June 4, 2017 at 6:47 pm

Sure, please do ask the same.

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Reply

Anil says:
May 30, 2018 at 11:57 pm

Can you explain how to draw 15 * 30 mins crossover ? I am not clear

Reply

Faisal Mohammed says:

May 31, 2018 at 11:40 am

You will first need to decide on the number of candles for which you want the MA.
Then, you can open a 15 min chart and add 2 moving averages with the period ‘X’ and
‘X*2’
Say you want to plot for 100 candles. Choose 100 for 1st MA and 200 for 2nd MA.
That will give you a 15 min * 30 min crossover

Reply

VADDADI PRUTHVI says:

October 10, 2018 at 11:24 am

The period you have mentioned is in days. How can we select no of candles in
15*30 minutes chart and how to plot chat for 15*30minutes. Please tell clearly as
I am new to using the tools.

Rajiv says:
August 9, 2018 at 11:27 pm

Sir, as you rightly mentioned, I’ve also noticed that MA’s perform whenever the market’s in a
trend. However, I’ve observed this quite often and feel that the duration of the EMA
crossovers need to be backtested on a scrip across its historical data points to arrive at the best
possible trade entry/exit positions. For ex: I’ve found that a 5×20 EMA crossover on 5-min
Heikin Ashi candlestick pattern works pretty well for HINDALCO.

Reply

Karthik Rangappa says:

August 10, 2018 at 2:06 pm

Agree, Rajiv. It is always good to trade with deeper insights.

Reply

Rayen Dias says:

September 1, 2018 at 1:22 pm

Does it work for Intraday trade?

Reply

Karthik Rangappa says:

September 3, 2018 at 8:54 am

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Yup, it does.

Reply

Sahil says:
March 30, 2019 at 3:19 pm

Sir can you tell me in last chart there are two moving averages .my ques. Is
Why those lines are getting up and down with each other.?

Reply

Karthik Rangappa says:

March 31, 2019 at 8:31 am

I’d suggest you read the chapter again, Sahil. Its explained well there.

Reply

2. rajeshck32 says:
November 20, 2014 at 1:17 pm

how to avoid whip saws in the cross over systems

Reply

Karthik Rangappa says:

November 21, 2014 at 9:47 am

You can avoid whip saws to some extent by using a higher value moving average.

Reply

rajeshck32 says:
November 24, 2014 at 11:04 am

how to avoid whipsaw of higher value cross over , if you continue this there won’t
be any trade to take , can you elaborate on your answer. if you go on choosing higher value
where is the end .

Reply

Karthik Rangappa says:

November 24, 2014 at 11:22 am

Agreed. The thing is, if you choose a higher MA cross over, whipsaws are reduced to a
great extent. However avoiding whipsaws while using MA system is not possible…
especially when the markets are moving sideways. So between the two i.e lower MA
and higher MA, I would suggest a higher value MA crossover as it tends to reduces the
whipsaws.

Reply

Muthu Kishor Ganesan says:

April 28, 2015 at 4:37 pm

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Karthik, Can you enlighten me on whipsaws. I’m new to that word

Karthik Rangappa says:

April 29, 2015 at 6:12 am

Whipsaw is a term used when the market fluctuates between two price points for
a prolonged period. For example if a stock is trading between 950 and 975 for the
longest period then both bulls and bears will find it difficult to make meaningful
money. This is because the stock is fluctuating between two price levels (which
are close to each other)…and usually the fluctuations are rapid. This is called
“Whipsaws”.

saurabhrendale says:
December 2, 2016 at 3:17 am

Thanks Karthik for the explanation of whipsaw, I knew what it meant, but was
not sure why this happens. One idea that i had was whipsaw was a result of some
negative news in the market at that time.

Karthik Rangappa says:

December 2, 2016 at 11:57 am

Cheers, happy to clear that doubt for you

saurabhrendale says:
December 3, 2016 at 12:41 am

Gyan says:
January 6, 2017 at 10:49 pm

If there are whipsaws, then doesn’t it mean that there is no trend and we
shouldn’t use MA Crossover in no-trend market.

Karthik Rangappa says:

January 7, 2017 at 12:00 pm

Yes, MAs does not really give you great results when the markets whipsaws.

kunal says:
October 2, 2017 at 3:45 pm

average is average whats higher and lower in it??

Reply

Karthik Rangappa says:

October 3, 2017 at 11:13 am
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Moving average – changes as new data flows in.

Reply

kunal says:
October 3, 2017 at 2:57 pm

but suppose if i wanna take average of last 5 sessions (1st day, 2nd day, 3rd day,
4th day, 5th day)and its 1000 then whats the higher value in this . the only value
we have is 1000.whats the high average and low average we have only 1 average
and ie 1000
i hope i made my que clear to u

Karthik Rangappa says:

October 4, 2017 at 10:42 am

What if the data on the 5th day is skewed and your average jumps to 1000 from
the usual 650?

3. Chandra choodan Nair says:

November 23, 2014 at 4:57 pm

Which crossover system and candle chart are preferable for intra day trading in MCX bullion market.
Thank you.

Reply

Karthik Rangappa says:

November 24, 2014 at 5:13 am

Irrespective of the asset class for intra day trading I would advice 10 or 15 mins charts..as longer the
time duration is longer, the more reliable is the trading signal. Going by the same logic, I would
advice you to use slightly longer term MA cross over for better accuracy.

Reply

Saurabh says:
February 4, 2018 at 10:44 pm

Thanks Sir,
Thanks for your valuable guidance pl tell me in 10/15 mint chart or in intra day trading which
indicator are best to do technical analysis,
I am new here in this field and using Zerodha as my preferred broker
Thanks in advance!

Reply

Karthik Rangappa says:

February 5, 2018 at 10:49 am

I personally prefer the moving averages, they are simple and helps in most cases.

Reply

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4. Nitesh sharma says:

November 24, 2014 at 8:02 pm

Karthik Can you Please explain something about divergence

Reply

jagadeesh says:
November 24, 2014 at 10:44 pm

Hi nitesh,
A stock is said to be in divergence when the momentum forms lower peaks while the stock is
forming higher peaks….
Reverse is true for bear markets.. Hav a look at the following picture for a better understanding..

Reply

Nitesh sharma says:

November 26, 2014 at 7:47 pm

Thanks JAGADEESH

Reply

Karthik Rangappa says:

November 25, 2014 at 10:07 am

Jagadeesh has posted a quick background information. I will try and elaborate on it sometime
soon…but I personally don’t like to look at divergence and convergence, hence have not covered it
in Varsity.

Reply

5. Nitesh sharma says:

November 26, 2014 at 7:50 pm

Hi Karthik

How to Trade the Below Situation when no cross overs happening and the RSI and Stoacstics not in Favor
of short trade

Reply

Karthik Rangappa says:

November 27, 2014 at 5:20 am

From what I can see from the chart, clearly the trade is in favor of a long position. This is because
the MA cross over has already happened and it seems like a trend is being formed. I would wait for
a retracement on low volumes to enter a position. Ofcoure, the other checklist items should also
comply.

Reply

6. Nitesh sharma says:

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November 27, 2014 at 8:04 pm

Hi Karthik,

In the below chart even though the Price is Retracing Upwards the EMA cross over has hapend , how
trade can be avoided in this type of situation , also what other indicator i can mix with this to filter the
same .

Reply

Karthik Rangappa says:

November 28, 2014 at 1:36 am

Nithesh, few things I notice from this chart –

1) I see a very nice double bottom formation ard 4345 suggesting a long
2) I see a hammer being formed at the end of the 2nd double bottom suggesting a long
3) Volumes are great
4) MACD crossover suggests a long

If both S&R also are supportive, then I guess this is a clear case of being long on this stock. Also,
for it is best if you overlay the moving averages on the price chart and not on a separate plane.

Reply

Pearl says:
May 11, 2015 at 3:37 pm

Can you tell me what MACD, RSI, FSTO (in the given chart) stand for?

Reply

Karthik Rangappa says:

May 12, 2015 at 6:37 am

They are all technical indicators. I would suggest you go through Chapters 14 & 15 for
more details.

Reply

Ashwin D says:
August 9, 2015 at 10:11 am

Dear karthik,
Is it ok to use 3×13 EMA Crossover for short term trading?, also, if yes what other parameters
to be considered in this case for better profit opportunity?

Reply

Karthik Rangappa says:

August 10, 2015 at 6:53 am

Yeah, you can use 3 x 13 EMA. In fact you can backtest this on Pi to figure out the
profitability. Check this http://zerodha.com/z-connect/tradezerodha/pi-
tradezerodha/eas-for-auto-buysell-signals-pi

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swapnil says:
April 21, 2018 at 10:20 am

Karthik could you please share this chart with us so that we can have idea about the
formation?

Thanks.

Reply

Karthik Rangappa says:

April 21, 2018 at 5:10 pm

Which chart, Swapnil?

Reply

rajeshck32 says:
January 7, 2015 at 6:01 am

bro see my jan 5 th comment on how whipsaws can be avoided , if you go on including indicators
you can never trade totally confused ,in above situation ,even macd is telling it will go up .( flat
macd method ).

Reply

7. Arunava Bhattacharya says:

December 21, 2014 at 6:31 pm

Sir,
First of all, many many congratulations for your effort, I’ve not seen such an effort to educate & support
traders. God bless.

I’ve a doubt regarding the MA crossover system (last figure of this chapter – 25&50 MA crossover). The
first two trades are in loss, as we entered @ high and exit @ low, please clarify.

With best of my regards,

Arunava BHattacharya.

Reply

Karthik Rangappa says:

December 22, 2014 at 5:07 am

Thank you

Yes, the first 2 trades are loss making. This is because the stock was in a sideways movement. MA
crossover works best when we have a trending market and fails when we are in sideways market.
This is what is being highlighted in the chart.

Reply

rajeshck32 says:
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January 3, 2015 at 4:19 pm

sir if you observe care fully the candle in which crossover has happened in all the cases , there is
one thing common .

Reply

Karthik Rangappa says:

January 3, 2015 at 4:58 pm

Bullish Candle?

Reply

rajeshck32 says:
January 5, 2015 at 1:21 pm

candle { crossover} high or low has to be broken and CLOSE above or below , THAN
TAKE IN THE NEXT CANDLE . IT IS SIMPLE . STOPLOSS PREVIOUS CANDLE
LOW OR HIGH , TECHNICALLY SPEAKING THERE HAS TO BE STRENGTH
AFTER THE CROSSOVER TO MOVE . YOU COULD HAVE INSIDE BAR IF
THERE IS NO STRENGTH , WHICH WILL GIVE THE DIRECTION OF THE
TRADE .

Reply

Karthik Rangappa says:

January 6, 2015 at 5:14 am

Interesting perspective there. Hope readers benefit from the insight.

Vivek says:
September 26, 2015 at 12:53 pm

Dear Rajesh and Karthik

I hope you don’t mind my ignorance as I am totally new to this sort of analysis. It
has been a commendable effort from Zerodha team to come with such an effort
for novices like us.
Could you please explain in detail the perspective in the last reply of yours… I
am not sure I got you.
Thanks in advance.

Karthik Rangappa says:

September 26, 2015 at 2:07 pm

Hopefully Rajesh should pitch in

8. rajeshck32 says:
January 6, 2015 at 7:51 am

SIR CAN YOU INCLUDE ONE TOPIC ON HOW TO CUT DOWN WHIPSAWS . IN EVERY
INDICATOR . IF THIS IS IN RESPONSES HERE ,THIS WILL NOT BE SEEN BY ALL .

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Karthik Rangappa says:

January 6, 2015 at 12:46 pm

Yes, one of the best ways to deal with this is keeping a ‘trailing stoploss’. Will talk about it
sometime soon. Thanks.

Reply

DR1184 says:
April 3, 2015 at 9:37 pm

if we r using MA system , i think Long/Short Entry into whipsaw is unavoidable (i.e. whipsaw is
visible only in hindsight)
breakouts often happen after lengthy whipsaw.
what really matters is ‘exit’ condition.
if exit point is well defined , one can profit from whipsaws too.. or in some cases , whipsaws are
very desirable. ( : scalping ? )
(e.g. , CLOSE > (REF(CLOSE,3) + 10))

Reply

Karthik Rangappa says:

April 4, 2015 at 4:53 am

You are right on this…also, whipsaws are very desirable for scalping…even here exit matters.

Reply

Raghavendra says:
June 17, 2015 at 4:48 am

Hi Karthik,

I did not understand the code mentioned by DR1184 in the end of his comment. What
does that mean?..
Also is there a chapter which takes us through the codes and formulas?..

Reply

Karthik Rangappa says:

June 17, 2015 at 5:44 am

The code is just an exit condition for the trade wherein it specifies “I would like
to exit the trade when the closing price of the current candle exceeds the close
value of the last 3 candles plus 10 more points”.

We are in the process of structuring the content for “AFL for traders” which is all
about coding the formulas in the AFL (Amibroker formula language), will keep
you posted on that. Meanwhile please do follow us on twitter for instant updates
— http://www.twitter.com/ZVarsity

9. vasanth says:

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January 28, 2015 at 1:48 pm

Can i use Moving average cross over system alone to take the trading decision? If so what’s the
probability of success rate?
I have checked alone also it’s giving good result. Requesting your suggestion please.

Reply

Karthik Rangappa says:

January 29, 2015 at 3:10 am

Of course you can. But do remember a solid MA system with high success ratio requires you have a
long term averages …something like 50 day x 100 day or 100 day x 200 day…but when you do so
the number of trading signals reduces. In essence higher the time frame, better the accuracy and
lower the number of signals.

Reply

10. vasanth says:

January 28, 2015 at 1:49 pm

Can i use Moving average cross over system alone to take the trading decision? If so what’s the
probability of success rate?
I have checked alone also it’s giving good result even if low volume. Requesting your suggestion please.

Reply

11. vasanth says:

January 28, 2015 at 1:49 pm

Can i use Moving average cross over system alone to take the trading decision? If so what’s the
probability of success rate?
I have checked alone also it’s giving good result even if low voume. Requesting your suggestion please.

Reply

12. vasanth says:

January 29, 2015 at 2:42 pm

If i am looking after 5 Mins intraday chart which time frame can give better result while using Cross over
MA alone?

Reply

Karthik Rangappa says:

January 31, 2015 at 7:10 am

Try 21 x 9 average. I’m not saying this is the best combination…but you may want to just give it a
shot.

Reply

Virender says:
July 9, 2018 at 8:52 pm

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When u say 5 minute intra day chart and 21*9 AMA, it means the candlestick will form every
5 minute and the two AMA will be 21 DAYS average and 9 DAYS average right?

Somewhere you had said 50*100 means number of candles you want and I’m getting more
and more confused
How to interpret this whenever you say something about x * y

Reply

Karthik Rangappa says:

July 10, 2018 at 12:56 pm

Virender, 5 * 21 day SMA means that a moving average will be formed using 5-day
closing price and another moving average will be formed over 21-day closing price.
Replace the day with minute, the interpretation remains the same.

Reply

PRUTHVI says:
October 10, 2018 at 11:45 am

Hi Karthik,
If i want to use 15*30min then 100ma and 200ma converts into 1500 and 6000
mins or what please confirm I am having a confusion in it.

Karthik Rangappa says:

October 11, 2018 at 9:07 am

I’m not sure what you mean by 15*30 mins. You will have to stick to one time
frame, for example, 15mins. Once you do that, 100 MA will correspond to the
last the average of the last 100, 15 minutes candle. Likewise with 200MA.

13. akshaay says:

February 1, 2015 at 11:26 am

want trading in bank nifty future.I request any experience trader who can advice about MA, Indicators ,
Time frames etc .Thanks

Reply

Karthik Rangappa says:

February 2, 2015 at 4:36 am

The underlying does not make any difference. Whether you are trading Nifty futures, Bank Nifty
Futures, or Crude Oil futures the principle of trading remains the same.

Reply

14. vasanth says:

February 4, 2015 at 12:57 pm

How to be cautious & avoid trading in whipsaws while using MA cross over strategy?

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Karthik Rangappa says:

February 5, 2015 at 5:18 am

This really depends on your time frame. As a rule of thumb, the longer the MA combination the
lesser the whipsaws. For example a 20 x 9 MA crossover system will generate lesser whipsaws
when compared to 3 x 5 MA crossover.

Reply

rajeshck32 says:
February 18, 2015 at 7:10 pm

Pls refer above comments . my resech on how to avoid whipsaws in moving avarages

Reply

Karthik Rangappa says:

February 19, 2015 at 5:40 pm

Sure. I’ve not really worked with these MA combinations, hence cant really comment.

Reply

15. vasanth says:

February 5, 2015 at 3:44 pm

Consistently I tried 9X21 MA cross over in 5 Mins Intraday chart but sometimes it get failed. Can you
suggest Crossover MA strategy with any combination for best results? Like candlesticks with R&S and
Volume…

Reply

16. vasanth says:

February 5, 2015 at 5:07 pm

Even i tried triple combination cross over MA of 9X15X21, once 9 crosses 15, alert signal & after 21
taking position. Sometimes it’s not working well which results in loss.

Reply

Karthik Rangappa says:

February 6, 2015 at 4:31 am

Vasanth – to begin with try increasing your time frame. Maybe 5 mins is too short. Explore (paper
trade) 15 mins time frame and on that try 3 x 5 or 9 x 21 combination. Also stick to indices to begin
with.

Reply

rajeshck32 says:
February 18, 2015 at 7:14 pm

Try 13 / 21 /34 in 5 min works 80% strike rate with momuntem indicator

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Reply

Sk says:
July 31, 2017 at 5:30 pm

Hi can we write in script to get alerts?. If you know, can I please guide me

Reply

Karthik Rangappa says:

August 1, 2017 at 10:40 am

Check this – https://zerodha.com/expert-advisors/

Reply

VGouda says:
August 29, 2017 at 4:27 pm

What does the below code mentioned in above link means?

BUY SCript:
REF(OPEN,1)>REF(CLOSE,1) AND
REF(OPEN,2)>REF(CLOSE,2) AND
REF(CLOSE,1)=REF(CLOSE,2) AND
REF(LOW,1)= REF(LOW,2)

Sell Script:
REF(OPEN,1)>REF(CLOSE,1) AND
REF(OPEN,2)>REF(CLOSE,2)

Karthik Rangappa says:

August 30, 2017 at 10:25 am

Looks like a script where buy and sell signals are generated based on comparing
OHLC data.

17. Devaki Nandan says:

February 13, 2015 at 6:38 pm

Hi Karthik, thanks for presenting all this useful technical info in an excellent manner…hats off to you and
your team. well my understanding is that trading based on MA crossover will not result into losses though
sometimes it may be marginal profit or large profits and also at lower time frame with lesser period MA
combination may result into higher whipsaws….is my observation correct?

Reply

Karthik Rangappa says:

February 15, 2015 at 7:54 am

You are absolutely correct on this one.

Reply

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Devaki Nandan says:

February 15, 2015 at 9:34 am

thanks Karthik. well I have a doubt. many a times candlestick pattern gets formed around
S&R levels to confirm long or short but after sometime trend changes i.e. it breaks the S&R
level and trade goes against us. against this pattern strategy, MA crossover strategy ensures
that either trade is in our favour or marginally against unless strong gap up or gap down
opening. so why have you kept the candlestick pattern on top in the checklist when MA
crossover strategy gives better results? though it is good to have all the checklist items but its
not possible in the intra-day trade. also how safe is to do intra day trade based on flat MA
crossover strategy? thanks in advance for your time and advise.

Reply

Karthik Rangappa says:

February 16, 2015 at 6:10 am

Well, the problem with MA strategy is that they work very well in a trending market.
But market can remain range bound for more time than anyone can imagine. In fact the
whole of 2012 was range bound with virtually no movement in the market. In such
circumstances MA based strategies just wont work, hence you will have to rely on
candlesticks to identify opportunities. Like with anything else, relying on just 1
technique may be not a great idea in markets.

Reply

18. girish says:

March 30, 2015 at 9:21 am

karthik sir..
25-50 ema day bearish indicator.
thank you sir

Reply

19. girish says:

March 30, 2015 at 9:22 am

karthik sir..
25-50 ema day bearish indicator, gravita stock.
thank you sir

Reply

Karthik Rangappa says:

March 31, 2015 at 4:03 am

Yes, this is a bearish cross over…but there is a picture perfect bullish Marubuzo as well

Reply

girish says:
March 31, 2015 at 5:50 am

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hmmm thank you sir…

Reply

20. girish says:

March 31, 2015 at 6:35 am

dear karthik ji..

I’m very happy because of I started own researching stocks, all indicators working & zerodha technical
analyst module is super, it’s helped for a lot…must read patiently everybody who is in market and keep
practising……i’m interesting to search own indicators is’t possible to imagine karthik ji…?
thank you

Reply

Karthik Rangappa says:

April 1, 2015 at 2:46 am

Glad to know this Girish. Yes, you can develop your one indicators…its just a matter of getting the
thought process right.

Reply

21. DR1184 says:

April 3, 2015 at 9:54 pm

hello Sir ,
. EMA would more whipsaws in sideways market.? if yes , is it good to prefer SMA ?
. MA gives us ‘late entry’ into a trend, how can we use PSAR along with MA system ? for right timing
into trade.
thnx,
Rajesh

Reply

Karthik Rangappa says:

April 4, 2015 at 4:56 am

EMA is always more desirable as it takes into account the latest information from markets. Will
probably include an additional topic on MA & PSAR sometime soon.

Reply

22. TSS KISHORE says:

April 18, 2015 at 7:09 am

Dear Sir,

In the above Girsh Chart on Gravita India I would like to go long as the prior trend is downward and a
marabozu formed at the bottom of the trend and RSI is rising from 30-50 range. But as stated by Girish
C/O of EMA`S are not suggesting. Pl. correct me. Regards

Reply

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April 19, 2015 at 2:48 am

Marubuzo is the only pattern which does not require a prior trend. As long as you think the trade is
good to go, you should take it.

Reply

23. Durgesh kumar says:

April 19, 2015 at 10:27 am

Sir,, where to get technical analysis software

Reply

Karthik Rangappa says:

April 19, 2015 at 10:31 am

Check out http://www.zerodha.com/pi

Reply

24. Muthu Kishor Ganesan says:

April 28, 2015 at 4:48 pm

Hi karthik,
If i had missed a to go long during a short term ema crosses up over long term ema, Can i buy that stock
after that? so that i can sell when the ema reverses?

Reply

Karthik Rangappa says:

April 29, 2015 at 6:13 am

You can as long as the run up in the stock (after the crossover) is not much.

Reply

25. chandrashekhar kapal says:

May 30, 2015 at 7:37 am

superb ananlysis sir thank u so much

sir elborate about pi trading terminal pls

Reply

Karthik Rangappa says:

June 1, 2015 at 4:16 am

Thanks for your interest. We are thinking of putting up some stuff related to Pi soon.

Reply

26. CHANDRASHEKHAR says:

June 5, 2015 at 5:46 am

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IN SECOND CHART OF THIS NOTES HOW MANY DAYS HAVE U SELECTED OF BPCL STOCK
SIR
AND THIS ALL FEATURES ARE AVAILABLE ON PI TRADING TERMINAL
AND WHAT IS DIFFERENCE BETWEEN 10 MIN EMA AND 10 DAYS EMA
AND AGAIN THE SAME Q IS THIS ALL INDICATORS AVAILABLE IN PI SOFTWARE

Reply

Karthik Rangappa says:

June 8, 2015 at 12:20 pm

BPCL is EOD chart here. All these indicators and more are available on Pi. Please do visit
http://www.zerodha.com/pi to know more.

10 mins EMA considers 10 min candles as look back period…likewise the 10 day EMA considers a
lookback period of 10 End of day periods.

Reply

27. CHANDRASHEKHAR says:

June 5, 2015 at 5:49 am

WHICH COMBINATIONS OF INDICATORS WE CAN USE FOR INTRADAY TRADING ON NIFTY

SPOT WHICH CAN SUIT INTRADAY
KINDLY REQUEST U TO PLS SUGGEST

Reply

Karthik Rangappa says:

June 8, 2015 at 12:23 pm

If you ask me – simple candlestick patterns with S&R levels should be just fine

Reply

28. Chandrashekhar says:

June 9, 2015 at 10:07 am

thank u sir looking forward to other modules which are coming soon

Reply

Karthik Rangappa says:

June 10, 2015 at 11:35 am

We are working on it sir. We will put it up as soon as we can.

Reply

29. sarath says:

June 19, 2015 at 1:58 pm

which is the best stochastic intraday set up

Reply

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30. NARSIMHA says:

June 20, 2015 at 8:20 am

sir,how to plot EMA CROOSOVERS IN PI &when we plot s&r the graph gets smurged(iday)should we
plot s&r cloe&open a new chart of same for better visbility(cstics)r is there any other way explian both
question detailly as iam not so good at basics,bcoz of ur knowledge sharing we r trying

Reply

Karthik Rangappa says:

June 20, 2015 at 11:11 am

Can you please email sreenivasulu.m at zerodha dot com for this?

Reply

31. Rishi Sekhri says:

June 20, 2015 at 12:40 pm

Sir, for intraday charts, MACD is better or EMA is better can we use 12*25 EMA for 5, 10 & 15 min
Intraday Charts?

Reply

Karthik Rangappa says:

June 22, 2015 at 5:04 am

Certainly. Although I should tell you my views are biased as I always like to use the EMA for its
simplicity and matter of fact approach.

Reply

32. Rishi Sekhri says:

June 22, 2015 at 10:04 am

Ok Sir, thanx a lot

Reply

Karthik Rangappa says:

June 23, 2015 at 5:11 am

Reply

33. jaya krishna says:

June 28, 2015 at 10:35 am

dear sir, pls suggest me which is the best EMA that can b used in nifty future trading? AND what is the
best MACD?

Reply

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34. Chandrashekhar says:

July 1, 2015 at 3:21 am

do we use a combination of candlestick pattern, s & r and volume in commodity trading and second
question is can we use ema crossover with rsi in commodity pls do reply
thank u

Reply

Karthik Rangappa says:

July 1, 2015 at 6:34 am

Absolutely – all techniques of TA is applicable to Commodities and Forex markets.

Reply

35. Chandrashekhar says:

July 1, 2015 at 3:23 am

Specially in crude oil, gold, silver,copper

Reply

Karthik Rangappa says:

July 1, 2015 at 6:35 am

Like I said – you can apply no problem at all.

Reply

36. Varun Agarwal says:

July 25, 2015 at 8:20 pm

Karthik thanks a lot for your efforts in this module. My learning has been tremendous and loving it. I have
a specific query.

On PI i attempted to create EMA with 9X21, 21X50, 50X50 for 1 day intraday, 1 week and 6 months
(tried all three EMA’s for each time frame) but could not find any crossover. I did it for Lupin Shares from
17-July-2015 to 24-July-2015. Also plotted all three in 3 different charts at same time on 24-July-2015
intraday there was not cross over happening at all. This particular share had beautiful price movement (a
prerequiste for EMA). Can you help me where i am going wrong ?

Reply

Varun Agarwal says:

July 25, 2015 at 8:22 pm

CORRECTION TO ABOVE:

create EMA with 9X21, 21X50, 50X100 for 1 day

Reply

Karthik Rangappa says:

July 27, 2015 at 5:18 am
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Thanks Varun. I would suggest you email [email protected] regaring Pi, he will help
you with it.

Reply

Varun Agarwal says:

July 27, 2015 at 5:37 am

This is not regarding PI but regarding Moving Averages. i understand it conceptually but not
able to use it effectively.

Reply

Karthik Rangappa says:

July 27, 2015 at 6:03 am

Ah, got it. Sorry moment I saw I though it was a query on Pi

What periodicity have you selected?

Reply

37. Varun Agarwal says:

July 27, 2015 at 6:13 am

i attempted to create EMA with 9X21, 21X50, 50X100 for 1 day intraday, 1 week and 6 months (tried all
three EMA’s for each time frame for same frame in differnet charts) but could not find any crossover. I did
it for Lupin Shares from 17-July-2015 to 24-July-2015. Also plotted all three in 3 different charts at same
time on 24-July-2015 intraday there was not cross over happening at all.

Reply

Karthik Rangappa says:

July 27, 2015 at 10:56 am

I suspect you could inadvertently missing something here Varun. Can you please mail
[email protected] and check with him once?

Reply

38. Priyatam says:

August 21, 2015 at 1:43 pm

Sir,
I trade intraday in Nifty. I have to pick only 5 points with 50 qty. Because I want to make 20-30 trades
daily so I can get huge profit by end of day.
Kindly tell me these parameters :
1. Periodicity, interval & days in chart
2. EMA Crossover Slow & Fast interval
3. How to draw a moving average line on the volume bars
4. Which indicators should I use? ( MACD, RSI, BB )

Reply

Karthik Rangappa says:

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August 22, 2015 at 12:36 pm

I’m afraid I may not be the right person to answer this, for I don’t know how to generate these kinds
of trades on a daily basis. However I can answer your 3rd question –

To plot the MA over volumes – it depends on the software you use. Usually this can be done by
dragging and dropping the volume indicator from the tool bar on the volume data.

Reply

Arun mendiratta says:

August 8, 2017 at 7:28 pm

karthik,
How can i draw MA on volume chart in kite?Which variable to select in studies list??

Reply

Karthik Rangappa says:

August 9, 2017 at 10:33 am

Yes, this is possible.

Reply

ARUN MENDIRATTA says:

August 9, 2017 at 11:37 am

But which variable to select in study list?

Anup says:
October 10, 2017 at 6:20 pm

In studies select moving avg

In field select volume in place of close
Done

Reply

Karthik Rangappa says:

October 12, 2017 at 8:18 am

Cheers!

39. manus says:

October 15, 2015 at 4:16 pm

Suppose I want to do intraday trading with my capital x 10 or 20 ( brokers capital or margin money or
leverage etc. in say TATA MOTORS cash equity segment. Hence my capacity now is to buy 1000 shares
at one go or sell the same. Can you tell me exactly as to I have to look to which indicator so that I can buy
shares or take entry? Same for selling or exit? Or say first sell then buy at low? From the candles I am sure
even God can earn profit. Some other tools like PSAR, AVERAGE, SUPER TREND must be used. What
is this 20 days EMA and 50 days EMA? Where can I get it? Where exactly MCAD is used?

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Reply

Karthik Rangappa says:

October 16, 2015 at 7:44 am

For margins – https://zerodha.com/margin-calculator/SPAN/

MACD – http://zerodha.com/varsity/chapter/indicators-part-2/

EMA is discussed the same chapter.

Reply

40. manus says:

October 15, 2015 at 4:19 pm

Say I want trade with TATA MOTORS futures contract 1 lot. Lot size I will know. My question is will I be
able to buy this futures contract of TATA MOTORS of 29 Oct 2015 @ current market price. Or it’s price
is special and different from current market price of TATA MOTORS?

Reply

Karthik Rangappa says:

October 16, 2015 at 7:57 am

You could look up futures price directly on Kite or Pi.

Reply

41. aehsan4004 says:

November 3, 2015 at 10:13 am

1) is it true that moving averages do not generate false / loss making calls ?

2) i use PI and i am not aware which indicators to use for intraday trading ?

3) what should be ideal timeframe for candlestick chart for intraday & ideal MA gap between short & long
MA for MA signal generation ?

4) anyway to combine other indicators with MA to generate better signals ? which combination would u
suggest ?

5) if you can be kind enough to share which indicator / combination you use for your trading ?

thank you

Reply

Karthik Rangappa says:

November 4, 2015 at 5:12 am

1) MA do tend to give out false signals especially during sideways markets

2) Start with simple MA indicators, this should be good
3) Higher the frequency, lesser the noise component. Suggest you use 15 mins data for intraday
4) MA + Candlesticks + Support Resistance should be a good start
5) Many, depends on the situation. More often than not i look at MAs.
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Reply

42. Pratibha says:

November 3, 2015 at 11:00 am

I got that : One can decide to make fresh buy position as soon as stock prices goes above the 50 Day SMA
butif Day SMA ? then he will not be able to maximize profit ? How can he decide to sell at highest or near
High price b/w those 2 points? If he waits for stock to come down the 50 Day SMA, he would be missing
the oppurtunity to sell at high b/w those 2 points.

Reply

Karthik Rangappa says:

November 4, 2015 at 5:16 am

You cant really time the markets to perfection. Even if you capture 40% of the rally, its job well
done.

Reply

43. aehsan4004 says:

November 3, 2015 at 12:38 pm

1) is it true that moving averages do not generate false / loss making calls ?

2) i use PI and i am not aware which indicators to use for intraday trading ?

3) what should be ideal timeframe for candlestick chart for intraday & ideal MA gap between short & long
MA for MA signal generation ?

4) anyway to combine other indicators with MA to generate better signals ? which combination would u
suggest ?

5) if you can be kind enough to share which indicator / combination you use for your trading ?

thank you

Reply

44. Lalit Sharma says:

November 24, 2015 at 11:11 am

I have just gone through EMA cross over chart pattern and want to experiment 15*30 minutes on day
trading. Is 15*30 ok or anyother else to be tried?

Kindly inform if the same chart is available in Kite or PI software and if yes, in which drop down box or
how to create? I request to guide step by step.

I ll be highly grateful to you.

Regards,

Reply

Karthik Rangappa says:

November 25, 2015 at 11:18 am

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Yes, the same is available in Kite and Pi. You just need to overalay the moving averages on the
prices. Suggest you call our support and they will explain this better to you.

15 * 30 is good to go with! All the best.

Reply

45. Wasee says:

December 20, 2015 at 10:18 am

Hi,
I am using 9-21 EMA and 9 RSI (80%-20%) is it right setting for intra-day trading?

Reply

Karthik Rangappa says:

December 21, 2015 at 5:20 am

Yes, as long as it works

Reply

46. pradeep k says:

December 21, 2015 at 2:55 pm

Dear Sir, I am trading in Copper and Crude using 10 min sma crossing 50sma . also watch 200ema. all on
3 min and 5 mins chart. but some times the chart line takes a u turn on touching the slow one. this makes a
lot of trouble. can you suggest a better format for trading in copper and crude? i would like to learn some
better ideas from you. how it can be organised. please suggest

Reply

Karthik Rangappa says:

December 22, 2015 at 7:23 am

Pradeep – very shortly we would be covering commodities. Suggest you kindly wait for a little more
time.

Reply

47. aehsan4004 says:

December 21, 2015 at 5:53 pm

in PI MACD is plotted below the chart i wish to plot the MACD on live chart . shall i do it manually ?
i understood the long cycle= 26, short cycle = 13 , but what exactly does the signal cycle = 9 mean ?

which should be given more importance, MACD or MACD histogram ?

should RSI be used only as a supportive indicator to our buying & shorting desicions or we can trade
using RSI indicator alone?

Reply

Karthik Rangappa says:

December 22, 2015 at 7:29 am

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Regarding how to plot, I would suggest you reach out to my colleague Srini –
[email protected]

I would suggest you pay attention to the MACD line as such.

Also, your main thesis to trade should stem from candlestick/fundamentals/quants. Indicators alone
should not be your main criteria to set up trade.

Reply

aehsan4004 says:
December 22, 2015 at 9:25 am

yes i do take candlesticks into consideration .

1) what exactly do u mean by fundamentals & quants ( strictly w.r.t commodities ) ?

2) “pay attention to MACD ” you mean simple MACD or MACD HISTOGRAM ?

3)should RSI be used only as a supportive indicator to our buying & shorting desicions or we
can trade using RSI indicator alone?

4) once a good strategy is finalized then is automatic trading a good option for retail traders ?

5) what are the most common auto-trading strategies used in markets by retail / institutional
traders ?

Reply

Karthik Rangappa says:

December 23, 2015 at 7:03 am

Answers as below –

1) Fundamentals such as demand and supply situation, production data etc. Quant is
more of statistical data.

2) MACD Line

3) Supporting indicator

4) Yes

5) Moving average system perhaps?

Reply

aehsan4004 says:
December 23, 2015 at 7:44 am

i would like to know /learn more about ” quants ” . what can be an ideal source
for this ?
with regars to supply & demand , production data … shall we consider CME to
be relevant ? what other sources for the same ?

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Karthik Rangappa says:

December 24, 2015 at 12:39 pm

You will have to start with understanding basic calculus to deal with Quants for
Finance. If you are not familiar with calculus, then here is a good book to start
with – http://www.mhprofessional.com/product.php?isbn=0071795537&cat=145

CME is good.

48. aehsan4004 says:

December 25, 2015 at 7:46 am

1) basic calculus seems like something i did during my 12th boards , i think i should be workable for me .
i downloaded the sample pages it just had problems & solutions ….. how exactly should i use this book ,
like a workbook to practice problem solving ?

2) is it a good idea to trade options based “ONLY” on MACD signals of underlying ? (my idea is buy only
OTM / far OTM CE-PE , as per the signal , without considering/calculating any of the greeks )

Reply

Karthik Rangappa says:

December 27, 2015 at 3:44 am

1) The idea is to first get comfortable with basic mathematics. Once you do that you can look for a
structured program on financial mathematics – I guess Coursera has few.

2) No.

Reply

aehsan4004 says:
December 27, 2015 at 10:09 am

thanks merry christmas & happy newyear

Reply

49. Somnath says:

January 1, 2016 at 11:57 am

Hi Karthik,
Can you please refer to the Adani Ports chart?
Is the bullishness to be continued based on the MA Crossover and last candle being a Bullish Maribozu?
Regards,
Somnath.

Reply

Karthik Rangappa says:

January 2, 2016 at 3:15 am

It certainly looks bullish, but do watch out for the low volume on the Bullish Marubuzo.

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Reply

50. Ashish Singh says:

January 9, 2016 at 6:47 am

Dear Karthik,

Please refer to the ACC chart, do you think its the time to take long position?

Reply

Karthik Rangappa says:

January 9, 2016 at 8:55 am

Well, the hammer looks enticing. Please make sure other items on the checklist align.

Reply

Arun mendiratta says:

August 8, 2017 at 8:00 pm

Karthik,
The ACC chart is of 10*21 EMA, but as i have learnt from theory in this chapter, Buy signal
is generated when the short term MA turns greater than Long term MA. But according to the
chart it should be a sell signal… Am i going wrong somewhere?Plz help

Reply

Karthik Rangappa says:

August 9, 2017 at 10:39 am

Not really Arun, the stock is trending up and MA’s are suggesting a buy.

Reply

ARUN MENDIRATTA says:

August 9, 2017 at 11:36 am

But the shorter Ema (10) is less than 21 ema at the hammer formation.So how it
can b a buy?

Karthik Rangappa says:

August 10, 2017 at 11:21 am

I personally like to make the decision to buy or sell based on candlesticks.

Indicators including MAs only give me that 2nd opinion.

51. ajay says:

January 9, 2016 at 6:09 pm

Hello sir can u tell me in intraday trading for crude oil and nickle which technical indicator should be uaed
like sma , stochastic, or RSI and which configuration should we taken

Reply
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Karthik Rangappa says:

January 10, 2016 at 5:04 am

All indicators are applicable to commodities as well. I personally prefer the 9 and 21 day EMA for
intraday trading.

Reply

Joe says:
February 8, 2016 at 5:50 pm

Hi Karthik

Apologies for this silly question. Could you help me to know how do I draw this 9*21 EMA
in the chart for any commodities in intraday?

Reply

Karthik Rangappa says:

February 10, 2016 at 3:31 am

This should be quite simple. Which s/w do you use? If you are using Pi or Kite our
support executive should be able to help you, suggest you give them a call.

Reply

Joe says:
February 13, 2016 at 10:37 am

Thanks Karthik. The support executive did help me the other day when I called
them. I’m using PI.

Karthik Rangappa says:

February 16, 2016 at 5:48 am

Sure, by the way you should also try Kite – https://kite.zerodha.com/

52. harishkumarkg says:

February 2, 2016 at 8:47 am

hi karthik
i really liked the way u refer to all the doubts.
even i have a doubt actually and i hope i will get something from u.
my doubt:
is yes definitely all the trading system with moving averages works upto 70% accuracy and our entry
points will be accurate but am not able to book profit am unable to decide how much profit to take. when
price reaches certain level am unable to decide whether i have to book my profits and get out of the trade
or have to continue so that price will go further. for example i use 200 ema with 15 min time frame few
days back in nifty i took long position around 7450 and price reached 7600 and i thought price may go
further but it started declining now today it reached 7507 and i couldn’t encash maximum profits. can u
please suggest me who to deal with this

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Reply

Karthik Rangappa says:

February 3, 2016 at 6:18 am

Harish – this is a tricky problem. Why don’t you try having a short term moving average to trail
your stoploss?. This should help you lock in your profits as the stock moves in your favor.

Reply

53. harishkumarkg says:

February 3, 2016 at 9:26 am

thank u for responding to my problem.

s we can use short term moving average to lock in profits it will work fine when there is a short term trend
like i have posted a picture.
but what if there is a big trend like below picture,
in that we will get out of trade at some point according to short term moving average and book good
amount of profits, but when to re enter into trade when rally continues?

Reply

Karthik Rangappa says:

February 4, 2016 at 5:11 am

Well, if you are following a moving average system (any system actually) then the only way to
ensure success is by taking all the trades that the system suggests. You cannot be subjective here. So
you will be required to reenter when the MA suggest a crossover a generates a buy signal.

Reply

54. harishkumarkg says:

February 3, 2016 at 9:27 am

if at all using a short term moving average is beneficial which short term average to use? can u please
suggest any one?

Reply

Karthik Rangappa says:

February 4, 2016 at 5:12 am

For day trading I prefer 9×21 crossover on a 5 min chart.

Reply

55. harishkumarkg says:

February 4, 2016 at 5:46 am

but 9*21 generates lots of false signals and how to identify false signals? is there any other indicator
which can be clubbed with 9*21 to avoid false signals? if s please suggest me how to use it.
or else out of your experience if u have any trading strategy either long term or short term please share
with us.

Reply

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Karthik Rangappa says:

February 5, 2016 at 5:11 am

Harish try and increase the MA timeframe for fewer false signals. Something like 21 x 50 should
also be ok. I’ve been discussing a lot of strategies in the Option strategies module (Module 6).

Reply

Anuragh says:
January 8, 2019 at 9:41 pm

Hello Karthik,

What would be entry point and stop loss for 9 cross 21 or may be strategy for that matter .

I understand that Entry point would be the cross over point but what if cross over has already
happened few hours back and in that case what would be my entry point and Stop loss for the
same .

Please suggest .

Reply

Karthik Rangappa says:

January 9, 2019 at 11:09 am

The best thing to do is to wait for a retracement till the moving average.

Reply

Anuragh says:
January 9, 2019 at 2:49 pm

Yes Karthik That’s fine . But you know the cross over for 9*21 doesn’t happen
that often as 9*21 ON A 15 MIN Chart happens once or twice In a day and that
too rarely and waiting for it to happen again is like am not going to trade at all for
that day . What be your suggestion on this . Do you say that I should start looking
for an different opportunity on a different stock if the crossover has happened
couple of Hours before .
Thank you in advance

Karthik Rangappa says:

January 10, 2019 at 8:58 am

Yes, you should expand the watchlist, Anuragh. It is best if the trade originates
on its own rather than we trying to forcibly look for one.

56. harishkumarkg says:

February 5, 2016 at 5:54 am

ok, sir thank u, will check option strategies

Reply
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57. Mideone says:

February 5, 2016 at 8:02 pm

Sir, I am 24 year old. I don’t have any economic, finance or commerce background. But, I am good at
Mathmatics since. I enjoyed your tutorials a lot and understood market from scratch.

I have Rs.20,000 to invest in and start trading alongside a job. Is it possible to start trading with such a low
investment ?? Could you please help. Thank you.

Reply

Karthik Rangappa says:

February 6, 2016 at 6:52 am

My sincerer advice – don’t use that money for trading. I’d suggest you invest that money and learn
the how long term investment works before getting into trading.

Reply

Mideone says:
February 6, 2016 at 7:26 am

Thanks sir. Could you please suggest me what are sources to learn about long term
investment. I started an SIP of Rs2000. Would be grateful if you suggest what all should I
study before start trading. Thanks.

Reply

Karthik Rangappa says:

February 7, 2016 at 3:49 pm

I’d suggest you read our module on FA, you will get a good idea on long term investing
– http://zerodha.com/varsity/module/fundamental-analysis/

Reply

58. Joe says:

February 8, 2016 at 5:53 pm

I’ve been reading the text book for last few days but nothing came that close to understand MA the way
you have articulated Karthik. Indeed very simple and anyone can understand this. Now apologise for my
lack of knowledge. Can you help me to know how do I draw these MA in the chart when I open a chart for
a commodity?

Reply

Karthik Rangappa says:

February 10, 2016 at 3:32 am

Thanks for the kind words and encouragement Joe I’ve posted the answer in your other
comment.

Reply

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59. RK kumar says:

February 9, 2016 at 12:33 pm

Hi karthik,on August 24th our market has crashed one of the biggest single day fall since 2008 recession
anticipated further fall but very next day market rebounded more than 100 points and stocks like Hdfc
recouped the loss,how can we predict after a great fall like I mentioned that a bounce can happen,or it was
domestic play…

Reply

Karthik Rangappa says:

February 10, 2016 at 3:44 am

Honestly its very difficult to predict such short term moves. However years of solid market
experience will help you to some extent.

Reply

60. RK kumar says:

February 9, 2016 at 12:36 pm

What is short covering? Intra day due square off obligations required to go for buy but how it is happening
in futures and equity market?long unwinding is just the opposit of short covering…

Reply

Karthik Rangappa says:

February 10, 2016 at 3:46 am

Short Covering = the act of traders covering their short positions (preferably with a profit). Short
covering requires you to buy back futures, hence leads to a mini rally.

Long unwinding is just the opposite.

Reply

61. kieron says:

February 9, 2016 at 8:41 pm

Which time frame and ema time frame suitable for intraday trading to generate accurate signal

Reply

Karthik Rangappa says:

February 10, 2016 at 3:57 am

Depends on your risk appetite. I prefer 9 x 21 minute EMA crossover.

Reply

Joe says:
February 13, 2016 at 10:48 am

This Saturday afternoon is turning out be great benefit to me as I’m reading these modules
Karthik and reading all the comment sections that many people have posted. Can you also
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start writing blog please.

Would my below assumptions correct when I read this statement ‘ Depends on your risk
appetite. I prefer 9 x 21 minute EMA
crossover’
1. For trading about 3 hours in the India commodites segment(let’s say from 8.30 PM to 11.30
PM Singapore time), it is good to choose a 5 minute chart(I’m fine with the risk:reward and
have done the position sizing as well) and no overnight risk(I mean I don’t keep positions
open for the next day)
2. On this 5 minute chart of ONLY one day(do you want me to choose multiple days(?)),
select 9*21 minutes EMA to get some reliable accurate signals
3. write/print the rules in a piece of paper that you have highlighted and stick in the wall right
in front of the trading PC and start trading!

Reply

Karthik Rangappa says:

February 16, 2016 at 5:53 am

Yup, you can certainly choose 5 mins chart and overlay the 9 x 21 Minute EMA but
then you need to be sure about the risk reward ratio and other things.

Good luck Joe, stay profitable

Reply

Virender says:
July 9, 2018 at 9:10 pm

9*21 minutes? It is 9*21 days right? Confused confused confused.

Karthik Rangappa says:

July 10, 2018 at 12:57 pm

It can be days or minutes, based on what you select!

62. RK kumar says:

February 10, 2016 at 6:30 pm

hi karthik. how do futures position influences the equity price? theoretically underlying price should
influence fno? here iis it happening other way around? how futures short covering influence equity price?

Reply

Karthik Rangappa says:

February 11, 2016 at 5:06 am

Spot always influences the derivatives market. Both short covering and long unwinding are transient
and does not dictate long term outlook. This is exactly why you need to be quick while trading short
covering and long unwinding.

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63. aehsan4004 says:

February 22, 2016 at 10:55 am

which one is better stochastic or MACD ? & why ?

Reply

Karthik Rangappa says:

February 23, 2016 at 5:35 am

Depends on the situation. They are two different indicators with their own merits and disadvantages.
Cant compare them.

Reply

aehsan4004 says:
February 23, 2016 at 5:53 am

ok but can you give details on them seperately ?

their own merits & disadvantages seperately ?

which indicator to use under which situation ?

if you don’t mind , can you share what tech.indicators you use for your personal trading ?

thank you

Reply

Karthik Rangappa says:

February 24, 2016 at 5:16 am

MACD is discussed in detail here – http://zerodha.com/varsity/chapter/indicators-part-

2/

Will be putting up another chapter on indicators shortly.

I personally prefer MA for active trading.

Reply

aehsan4004 says:
February 24, 2016 at 9:02 am

both of them have whipsaws / false alerts , how to minimize those ?

when is the commodity module coming up ?

Karthik Rangappa says:

February 25, 2016 at 3:26 am

You can minimize them by increasing time frame. For example 21 day MA
produces more whipsaws than 50 day ema.

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Commodities is after Option Strategies…maybe by mid March.

64. RajiSuresh says:

March 14, 2016 at 4:28 pm

Dear Sir,
I’m a newbie. Awesome material. I’m reading the Moving Avg Chapter and couldn’t understand the
following(apologies if its dumb)
Under section 13.3, in the example for Ambuja Cements, you have said the first buy signal is B1@165
when price is above 50 EMA. But isn’t the price 165 below the EMA line? (it should be higher isnt it?) I
felt the same for S1@187 where the price seems higher(rather than below) than EMA line. Where am I
going wrong? Pls clarify
rgds

Reply

Karthik Rangappa says:

March 15, 2016 at 1:03 pm

Oh, the markings maybe confusing you, sorry about that. Please check the close of the candle to get
more clarity.

Reply

65. syed mahaboob basha says:

April 26, 2016 at 6:20 am

my client id is rb1210. i dont know how to plot Simple moving average for differnet time horizons like 20
days, 50 days and 200 days on pi could you please help me out.

Reply

Karthik Rangappa says:

April 26, 2016 at 1:05 pm

Please contact our support line – 080 40402020 for this.

Reply

66. Krishna says:

May 16, 2016 at 5:07 am

Dear Zerodha.
I was trading from last two years blindly after coming yo zerodha I didn’t traded but learnt many things
here. Thank u for providing not only technology but also amazing knowledge.
I have one question
I have a data history of last one year .if I want to calculate MACD how many data points has to be
considered. I.e MACd value for today EOD is from last 30 readings ? Or from last one year i have to
calculate. Same question is applied to other indicators too.

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Karthik Rangappa says:

May 17, 2016 at 5:15 am
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Usually for short term trading, 1-2 year look back period is good enough.

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Krishna says:
May 17, 2016 at 6:05 am

Omg. U replying to me question at 5am???

Thank u for replyin . What I understood from ur answer is, my calculation for macd will start
from 17/05 /15 to get value for 17/05/16. ( for short term), I.e My first set of EMA will start
from 17/05/15, get EMA from 17/05/15 to next 12 and 26 days.

Reply

Karthik Rangappa says:

May 17, 2016 at 7:52 pm

Yes, for 1 year EMA, you go back year ago…for 2 years you go back 2 years…so on
and so forth!

Reply

Krishna says:
May 18, 2016 at 5:15 am

Ok thanks. Now question is how Google finance or PI finding da values. ? If im

looking for chart of one month den how many reading its taking. If same chart I
change into 3 months den again software ll do calculation? Again how many
readings its taking. As I saw MACD value for today is X value on one month
chart and MACD value is Z on 3 months charts for da same day. I don’t knw I
asked in proper way or no . Hope u understood my question

Karthik Rangappa says:

May 18, 2016 at 7:17 am

These are calculated on a rolling average basis. The reference point keeps
moving as and when you keep moving the reference time period.

67. SaikiranGarapati says:

May 16, 2016 at 8:25 am

Hi,

When i apply 1min, 3min and 5 mins charts, which EMA and Which SMA and EMA cross over should i
take in to consideration?

Regards,
SaikiranGarapati

Reply

Karthik Rangappa says:

May 17, 2016 at 5:20 am

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This depends on your risk appetite. Lower the frequency of the EMAs then more number of signals
and more noise. Higher the frequency, lesser number of signals but also the quality of signals
improve.

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68. Krishna says:

May 18, 2016 at 12:36 pm

Dear zeordha.
Do u ppl block “reply” option if post is more than 3?, I dint seen reply option for my above post.
As I said I used to trade blindly before. Last year I joined zerodha and learnt many things here. Thanks
again for ur knowledge sharing.
U said reference point keep moving. I didn’t got it. Its moving to how many points behind. In Google
finance der is no option for assigning points behind ( don’t know abt pi),

Reply

Karthik Rangappa says:

May 18, 2016 at 7:32 pm

Oh no, there is no blocking of that sort. Maybe this is a bug, let me request our tech team to look
into this.

Regarding ref point – today is 18th May, if I need one year SMA I’d look back from 16th May 2015
to 17th May 2016, tomorrow would be 19th may..so my look back would shift to 18th May 2015 to
17th May. So on and so forth.

Reply

Krishna says:
May 19, 2016 at 4:48 am

Thank u sir.
If I want 20 days EMA for 19_05_16, then how PI or Google finance calculating ? Is it last 20
readings from 19_05_16 back side?,, as per ur answer if I want macd(26,12,9)for 19/05/16
then readings from 23/04/16 ( 19th -26) is enough ?

Reply

Karthik Rangappa says:

May 19, 2016 at 4:54 am

For 20 day EMA, look back is 21 days. For MACD (26,12,9) look back period would
be 27.

Reply

69. Anmol says:

June 5, 2016 at 10:58 am

Hello Sir! I am a great fan of your work towards educating us with immense knowledge about markets.
The only query which I have is whether should we consider volumes during intraday trading using
EMA’s? Also, what other parameters should we consider while trading with EMA technique in order to

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improve our accuracy? Should we use different indicators like RSI,MACD,etc with EMA’s. Also should
we consider S&R while using EMA’s. Once again thankyou Sir.

Reply

Karthik Rangappa says:

June 6, 2016 at 3:36 pm

Yup, it makes sense to keep volumes in perspective. From my experience EMA + S&R helps much
better than overlaying other indicators.

Reply

70. Rameshwar says:

July 7, 2016 at 9:27 pm

I use 5 and 15 minutes candlesticks.

Which Moving Average crossover is best for intraday trading? (Please answer in hours:Minutes)

Reply

Karthik Rangappa says:

July 8, 2016 at 10:54 am

15 mins is good.

Reply

Rameshwar says:
July 8, 2016 at 10:35 pm

Ok. I will use 15 mins candle sticks. Which moving average cross over should I use? Ex: 11
mins ,20 mins and 60 mins

Reply

Karthik Rangappa says:

July 10, 2016 at 8:46 am

10 mins should work ok – this is purely for intraday trading.

Reply

71. Deep kumar says:

August 14, 2016 at 1:43 pm

Sir,do you provide pdf of zerodha varsity (chapters).plz mail me.

Reply

Karthik Rangappa says:

August 16, 2016 at 11:28 am

You can download it from the module home page.

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72. kish k says:

September 3, 2016 at 1:41 am

Hello Karthick, First of all thanks for the clear explanation of the concept
How can I set MA crossover of 5min x10min for Intraday trading in zerodha kite platform? is it possible?

Reply

Karthik Rangappa says:

September 4, 2016 at 8:55 am

Welcome.

Yes, you can. Here is the link to Kite User manual which will explain everything about charts and
other aspects of Kite – https://kite.trade/docs/kite/ and for charts in particular –
https://kite.trade/docs/kite/#indicators-studies

Reply

73. Rajiv says:

September 3, 2016 at 11:45 am

Hi Sir, in the “SMOOTHING” method for intraday, can I use 5 minute chart and on top of it use 15 minute
EMA and 30 minute EMA for crossing method? what time chart would you advice for intraday? 5 minute
is ok or should I use any other? Thank you.

Reply

Karthik Rangappa says:

September 4, 2016 at 9:02 am

Shorter the time frame, higher is the noise component. I’d suggest you use a slightly long term
chart. I personally 10 or 15 mins charts for intraday.

Reply

74. Arjun says:

September 4, 2016 at 2:44 pm

It would be great if these contents were in video format because, the contents are good but are too lengthy
and time consuming, i usually prefer to learn from youtube.

Reply

Karthik Rangappa says:

September 5, 2016 at 8:41 am

Agreed, but we do not have the resource and bandwidth to make video content

Reply

75. Arjun says:

September 19, 2016 at 2:21 pm

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What is ‘offset’ variable that Is available when plotting the moving average indicator?

Reply

Karthik Rangappa says:

September 19, 2016 at 3:00 pm

You can ignore that Arjun. It helps you displace the data, although does not really improve the
predictability of the indicator.

Reply

76. ARJUN says:

September 19, 2016 at 6:35 pm

When on the chart when i move my cursor over previous candle charts, I can see OHLC values change for
the instrument. in this case bank nifty however the values for the moving average indicator can’t be seen.

1. What can I do to get these values on display as well and

2. Where are the settings to change the line width of my MA. its too thin for my linking.

Thanks in advance.

Reply

Karthik Rangappa says:

September 20, 2016 at 12:03 pm

Ah, not sure. It seems to be working for me. Can you contact our support for this? Thanks.

Reply

77. Madhuri says:

September 24, 2016 at 4:19 pm

When you say 9×21 crossover on a 5min chart for intraday is it 9×2 1min OR 9X21day.Excuse me if that
Is a dumb question

Reply

Karthik Rangappa says:

September 25, 2016 at 12:50 pm

No question is dumb! We are all in the process of learning

9 min over 21 minute on a 5/10 minute chart.

Reply

ravi says:
September 28, 2016 at 1:27 am

In 5 min chart, each candle is 5 min duratuon ( u can call it period). so 9×21 ema crossover on 5 min
chart means 9 period and 21 period ema crossover.
karthik sir, pls correct me if i m wrong.

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Karthik Rangappa says:

September 28, 2016 at 5:36 pm

Yes, you are correct. No problem with it.

Reply

78. Vasantharam R says:

October 5, 2016 at 11:04 pm

Pls clarify.
There was a hammer formation in L&T two days back with good volume and traded near the strong
support in EOD chart.
But the price has broken the 50 & 100 Day SMA.
Is it good in going long?

Reply

Karthik Rangappa says:

October 6, 2016 at 11:28 pm

Hammer by requires a downtrend as prior trend, do you see that happening in L&T?

Reply

79. Sudheer says:

October 30, 2016 at 8:48 am

Hi karthik,
can we initiate a buy(long) just after some time or half wau through when the faster EMA crossed over the
slower moving EMA and will be still be able to book profits when the reverse cross over happens?

Reply

Karthik Rangappa says:

October 30, 2016 at 6:30 pm

Well, its always good to have some confirmation and play it safe

Reply

sudheer says:
October 31, 2016 at 7:03 pm

Hey karthik,
Thanks for that .I have one more question. Is there a way where we can track if 50 day EMA
of stock or for that matter any stocks under watchlist crossed over its 100 day EMA and
create alerts for that so that we can take a look at trading decision.Thanks again for your time.

Reply

Karthik Rangappa says:

November 1, 2016 at 11:22 am

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Of course you can, check this – http://zerodha.com/z-connect/tradezerodha/pi-

tradezerodha/eas-for-auto-buysell-signals-pi

Reply

sudheer says:
November 2, 2016 at 12:13 pm

Thanks karthik

Karthik Rangappa says:

November 3, 2016 at 8:03 am

Welcome!

80. praveshbajaj says:

November 30, 2016 at 7:03 am

sir how to find support and resistance in uptrend and in down trend?

Reply

Karthik Rangappa says:

November 30, 2016 at 11:33 am

Check this – http://zerodha.com/varsity/chapter/support-resistance/

Reply

81. pankaj says:

November 30, 2016 at 4:43 pm

Sir , Can you tell me which is the good ema crossover system for day trading by your experience?

Reply

Karthik Rangappa says:

December 1, 2016 at 8:04 am

Simple 9mins by 21 min EMA is good to begin with. Give it a try.

Reply

pankaj says:
December 1, 2016 at 8:47 am

Sir, tell me what is period value to add 9 or 21 min ema.

Reply

Karthik Rangappa says:

December 2, 2016 at 11:37 am

You can plot this on the 10 min chart.

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Reply

psamant81 says:
December 1, 2016 at 6:44 pm

which are important and useful indicators for intraday trading ?

Reply

Karthik Rangappa says:

December 2, 2016 at 11:55 am

Many – MA, MACD, RSI, ADX etc. Check this –

http://zerodha.com/varsity/chapter/supplementary-notes-1/

Reply

psamant81 says:
December 3, 2016 at 8:04 pm

which timeframe chart should be used to find candlestick patterns in intraday

trading ?

Karthik Rangappa says:

December 4, 2016 at 10:06 am

I’d prefer either the 10mins or 15 mins candles for intra day trading.

82. ravi says:

December 4, 2016 at 11:27 pm

Karthik, for intraday trading, if 9 period ema crosses 21 period ema on 5 min chart we can buy and be in
trade till crossover changes direction and come out of that particular trade. my question in at that point can
we consider of entering in new trade to sell and square off later when ema crossover changes direction
again? and keep repeating it whenever we get signals? or is there something that we should go long only
or short only based on some other signal or conditions?

Reply

Karthik Rangappa says:

December 5, 2016 at 11:18 am

Yes, you can trade the averages…works well as long as there is a trend in either directions. But
when the markets consolidates, the whipsaws tends to give you many trades with none of them
materializing.

Reply

83. BRAJ KISHORE says:

December 6, 2016 at 11:02 am

can u PLEASE add SCREENER IN “KITE ” ?

Reply
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Karthik Rangappa says:

December 6, 2016 at 6:01 pm

Sure, will convey it to the team. Thanks.

Reply

84. Vikas Gupta says:

December 18, 2016 at 11:05 pm

Is there any way to filter the stocks based on technical indicator?

Let’s say, I need those stock of which 20 EMA has crossed 44 EMA. What would be the query for this
strategy?

Reply

Karthik Rangappa says:

December 19, 2016 at 5:56 pm

Yup, check this – https://www.youtube.com/watch?v=uZmZ51k3pPk

Reply

85. Pichaimani A says:

January 3, 2017 at 4:45 pm

Double Exponential Moving Average is there in kite or Pi?

Reply

Karthik Rangappa says:

January 4, 2017 at 11:19 am

I’m afraid not. Also, I’ve not really heard of a double MA. Is it a custom indicator?

Reply

Pichaimani A says:
January 4, 2017 at 2:13 pm

The formula for DEMA is: DEMA = ( 2 * EMA(n)) – (EMA(EMA(n)) ), where n= period.
Double Exponential Moving Average (DEMA) is a smoother and faster Moving average
developed with the purpose of reducing the lag time found in traditional moving averages.

If Zerodha introduces Double/Trible EMA, it will be great for traders . Thanks in advance

Double Exponential MA Formula: D-EMA = 2*EMA – EMA(EMA)

Triple Exponential MA Formula:T-EMA = (3*EMA – 3*EMA(EMA)) + EMA(EMA(EMA))

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Karthik Rangappa says:

January 5, 2017 at 10:43 am

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Ok. I’m not sure if we can have this in Kite. However, you can use the exper advisor
feature in Pi and run your own custom indicator. Check this –
https://zerodha.com/expert-advisors/

Reply

86. Gyan says:

January 4, 2017 at 9:20 pm

MA Crossover seems to indicate a trade very late. Please refer chart of DLF. It is moving up since 27th
Dec 2016 when its price was INR 102. Today it have moved to INR125. DMI also says that it is in a trend.
But still 9-days EMA hasn’t cross 21-days EMA. Most probably it will cross tomorrow i.e. after price
moving 20%!

Reply

Karthik Rangappa says:

January 5, 2017 at 10:48 am

Yes, you are right. In fact, for this exact reason the moving average is considered a lagging
indicator.

Reply

87. venkat says:

January 4, 2017 at 10:21 pm

karthik please make some arrangements in kite so that we can increase the thickness of movingaverage
lines as per our requirement right now it is very thin and we can not increase the thick ness what is
happening is we can not see proper with such thin line with other indicators such as ichimoku trading
system along with moving average.please do it its a request

Reply

Karthik Rangappa says:

January 5, 2017 at 10:49 am

Venkat – when you hover over the line, it automatically thickens. Have you tried this?

Reply

88. venkat says:

January 4, 2017 at 10:24 pm

and another request increase the colours choices in kite of all indicators which is restricting a lot and
confusion goes on with less colour choices. thanking you.

Reply

Karthik Rangappa says:

January 5, 2017 at 10:50 am

Sure, will pass on the feedback.

Reply

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89. chaitanya says:

January 5, 2017 at 11:35 am

good morning karthik sir, i have a doubt regarding MA crossovers..

1. first of all is period in intraday 1min chart while applying crossover means 15mins only?
2.im using 1min chart for intraday with 15mins x 30mins crossover…i checked for different stocks after
the markets are closed and found out that the indicator is generating good profits for the 1st 1 to 1.5 hrs
after the markets are opened..as you said it is not giving good results in sideways markets. now my doubt
is when i checked on the live market im not able to plot the graph till 10 ‘o’ clock or more than that
showing an error msg on pi which is causing loss of profit in the uptrend market. At 10 ‘o’ clock im able
to plot the graph with 15mins EMA and at 10:10 im able to plot 30mins EMA. how to overcome this
problem. if i use lesser time frame im not able to get accurate signals… pls give me solution for this
3. yesterdays with INFRATEL stock im able to get a profit of 12000 on paper for 1 lot of JAN futures.
the profit can be increased to 18000 if i able to get in the market at 9:30 to 9:40 but im only able to get
into the market between 10 to 10:15 due to not able to plot the graph.

Reply

chaitanya says:
January 5, 2017 at 11:42 am

4. im able to plot the graph at 10:00 and the graph is showing EMA line from 9:30

Reply

chaitanya says:
January 5, 2017 at 2:48 pm

hello karthik sir….i think i found a solution for my problem on my own…pls tell me whether
it is right or wrong…if i take 1min chart from yesterday itself then i will get correct signal to
enter into the trade in fact i can enter into the market at 9:15 or 9:20 itself…for eg for todays
market i will take 1min chart for yesterday itself..am i right sir..

Reply

Karthik Rangappa says:

January 6, 2017 at 12:59 pm

Somewhat, I posted a reply to your earlier comment.

Reply

Karthik Rangappa says:

January 6, 2017 at 12:49 pm

The periodicity can be anything – ranging from 1 mins to 1 day. If you opt for 15×30 mins…then
you will have to wait for 30mins for the data to generate.

Reply

90. chaitanya says:

January 5, 2017 at 6:21 pm

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hello karthik sir…i have another doubt pls dont get angry on me…this may be silly math doubt but my is
not able to agree for this
YES BANK is trading at 1168 at 9:20 this morning and at 11:10 first EMA crossover too place and got
sell signal at 1188 (im not using expert advisor sir…im observing the ema line move and when it crosses i
sell)..for 1 lot of jan futures we get 14000 profit and after 1.5hr again we get the same buy and sell signal
which gives profit of 23per share total profit will be 29400… sir do we get such huge profits on
investment of 40000 using EMA lines…is it safe trading with EMA during trend…im not able accept the
fact that we get such huge profts…pls help me

Reply

Karthik Rangappa says:

January 6, 2017 at 1:05 pm

It really depends on how when you manage the trade. There is a big difference between paper
trading and actual trading. Things appear to be in control when you paper trade…but with an actual
trade its easy to lose control. However, a good trade aims to be indifferent to the two. Its hard to
achieve this state…but one can.

Reply

chaitanya says:
January 6, 2017 at 5:58 pm

sir can you be ore specific about the difference…i am a client of zerodha form 2013..im
somewhat used to trading on live platform but i used to trade without using any technicals…
so i ran into losses so i thought i should learn and then trade…so i stopped a year ago and i
found varsity in last december it helped me a lot…ive gone through all the chapters..im able
to understand and visualize while reading…even though i have a little experience trading on
live platform still will i find difference… l will try to achieve the difference and thanks for
your support sir.. i bow to you

Reply

Karthik Rangappa says:

January 7, 2017 at 11:57 am

When you paper trade, you are emotionless. Even if you make a big loss, deep down
you know its not real. But when you trade in real markets, a small loss to give you big
pain. This make a big difference, as it can influence you to take irrational decisions.

Good luck Chaitanya. I hope you find success soon.

Reply

91. mehul says:

January 17, 2017 at 4:20 pm

Hi karthik
sorry to say u that i m really stuck in between the course I was so eagerly studying as at the crucial points I
cant see any charts mentioned by u. I m refering to my mobile pho e. Kindly let me know if there is way
out.
thanks

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Karthik Rangappa says:

January 18, 2017 at 11:30 am

Mehul – some of the graphs in the comment section may not be visible (there was an update which
messed up the images in the comments), but the graphs in the main chapter is.

Reply

92. mehul says:

January 17, 2017 at 4:46 pm

Or if u can suggest any good book to refer on TA where all the aspects are covered
thanks

Reply

Karthik Rangappa says:

January 18, 2017 at 11:32 am

Which aspects are you looking for Mehul?

Reply

93. Mehul says:

January 17, 2017 at 5:29 pm

Hi karthik
Got the problem solved
Can see the charts
Kindly ignore the above msg
Thanks

Reply

Karthik Rangappa says:

January 18, 2017 at 11:32 am

Great!

Reply

94. Hemant says:

March 14, 2017 at 5:24 pm

what period ema should one use for daily and weekly charts?

Reply

Karthik Rangappa says:

March 14, 2017 at 6:46 pm

No set rule here, Hemant. For short term, I use 9 and 21 period EMAs.

Reply

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95. Shubham Jain says:

March 19, 2017 at 6:04 pm

Dear Karthik,
Amazing Modules..!!!!
I have one question –
What role does OFFSET plays while looking at MA charts?

Reply

Karthik Rangappa says:

March 20, 2017 at 12:11 pm

Thanks Shubham.

Offset is used as a smoothing parameter. You can ignore this.

Reply

96. trader2017 says:

March 19, 2017 at 9:55 pm

What is the difference between trend strength and momentum of stock? Both basically mean the same.

Reply

Karthik Rangappa says:

March 20, 2017 at 12:12 pm

Yup, both are the same.

Reply

97. Ayush says:

March 30, 2017 at 10:14 pm

Sir, Is it necessary to set up moving average on the basis of closing price?

Reply

Karthik Rangappa says:

March 31, 2017 at 11:33 am

It is better on closing prices, but is not mandatory.

Reply

98. Ayush says:

April 1, 2017 at 2:25 pm

Will it be stupidity to trade in sideway market chart with crossover method?

Reply

Karthik Rangappa says:

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April 1, 2017 at 6:25 pm

You will have multiple crossovers, hence too many buy and sell signals.

Reply

99. Fahad Khan says:

April 4, 2017 at 6:06 pm

hello Karthik Sir… I may be wrong but in my opinion single EMA is more beneficial than crossing over
two EMAs because as per charts we are getting crossover(many times) in the end of the trend or at higher
point. Your words on this will help. Thank u..

Reply

Karthik Rangappa says:

April 5, 2017 at 7:56 am

Using two EMAs will help you identify longer trends and reduces the number of false trades.

Reply

100. Ayush says:

April 6, 2017 at 8:16 pm

In above charts all the averages giving buy signal after the market is already up and giving sell signal after
the market is already down, why?
Wouldn’t it be difficult to take decision when to enter and when to exit?

Reply

Karthik Rangappa says:

April 7, 2017 at 8:17 am

Averages is a lagging indicator, Ayush. It confirms an existing trend.

Reply

101. Chandrasekaran says:

April 8, 2017 at 10:34 am

Dear sir
How to set up smoothened moving average 3,8,13 ( allegator indicator settings ) in Zerodha PI or in kite ?

Reply

Karthik Rangappa says:

April 9, 2017 at 12:15 am

Select the indicator study and edit the settings.

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Chandrasekaran says:
April 9, 2017 at 8:26 am

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Other moving averages are there. But smoothened moving averages are not there, I think.
Please confirm. I think it is not possible to put the indicator of smoothened moving averages.

Reply

Karthik Rangappa says:

April 9, 2017 at 5:28 pm

Are you taking about these indicators in Kite?

Reply

102. Sreeram says:

April 11, 2017 at 3:29 pm

From the very beginning I read all chats on this moving averages forim
Lot of moving averages values time frames shared

As a filtered one can you please tell me which Ema values and which timeframe
Best for index, equity stocks and commodities

Kindly mention time frame for doing intraday as well one or two days holding

Also best settings to trade on moving averages

Thanks lot

Reply

Karthik Rangappa says:

April 12, 2017 at 7:45 am

Sreeram, as you may have realized there is no such thing as the best EMA/SMA. One has to
calibrate it to suite the time frame and stock (index) that her or she is trading. Having said that, I
think for intra-day 9 minute EMA works for me…and 21 day EMA for overnight positions.

Reply

103. Sreeram says:

April 12, 2017 at 2:05 pm

Dear sir, excuse me for asking further

I like to know settings in Ema cross over

Is it good to use ema9 and ema21 cross over in 5 min charts

For doing stocks and commodities

Let me know whether it can be done same 5 min commodities

Thank you very much

Reply

Karthik Rangappa says:

April 13, 2017 at 8:06 am
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Yes, its applicable.

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Sreeram says:
April 13, 2017 at 11:22 am

Thank you very much sir

I have a strategy which is shared by a trader in Fb

Ema 9 crosses above 21 , we have to check Candle high value of the buy arrow candle

That high has to be broken on the following any one candles before reverse signal

If rule satisfied enter a buy in next candle open price

Stop-loss 0.5 percent below buy price

Once stop-loss hit, wait for sell entry

No re entry in buy side again

Similar for reverse trades

Can you suggest me this strategy is profitable

Reply

Karthik Rangappa says:

April 14, 2017 at 8:02 am

I’m not sure, Sreeram. You need to back test this extensively before using it in the
market.

Reply

104. ajay says:

April 26, 2017 at 8:03 am

Sir ,

You mentioned 15 * 30 mins can be used for intraday and more aggressive trader 5 * 10 mins.

I am bit confused here…

you mean to say in 1 min chart ,we need to use 15 ema and 30 ema cross over or 5 ema and 10 ema cross
over?

I prefer to use 5 mins,10 and 15 mins charts for intraday.

Please suggest what ema cross over we need to used for above time frames?

Reply

Karthik Rangappa says:

April 26, 2017 at 11:25 am
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You can use any time frame and apply these averages. Shorter the time frame, more number of
signals and higher is the noise component. Higher the time frame, then vice versa.

Reply

105. shabaz says:

April 29, 2017 at 12:40 pm

Hence, moving averages help better for those who mostly invests for a long term purpose and for a short
term purpose we can use candlestick methods with volumes for better result.
Am i right?

Reply

Karthik Rangappa says:

May 1, 2017 at 9:36 am

Yup.

Reply

106. rajesh goel says:

April 29, 2017 at 10:20 pm

firstly i thanks very much for your insightful modules. secondly, trading in crude oil is baffling me. it
seems that there is no strategy trading in crude oil. whether 9×21 ema crossover works or any other
strategy. pls help and post some strategy of trading in crude oil intraday

Reply

Karthik Rangappa says:

May 1, 2017 at 9:53 am

All TA patterns are applicable on Crude as well…so try resorting to good old charts

Reply

rajesh goel says:

May 1, 2017 at 9:51 pm

pls suggest whether 9×21 crossover works in crude oil trading

Reply

Karthik Rangappa says:

May 2, 2017 at 7:15 am

You can apply the moving averages, however you need to backtest to check if it works
well. Good luck.

Reply

107. Vivek says:

May 5, 2017 at 2:06 pm

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I am looking a chart on Kite and have got a 50 SMA drawn. Please let me know, how can I see the value
of SMA at any particular point.

Reply

Karthik Rangappa says:

May 6, 2017 at 3:37 am

Please enable the crossair and move along the curve, you should be able the see the value on the
right.

Reply

Vivek says:
May 6, 2017 at 8:49 am

Thank You Sir

Reply

Karthik Rangappa says:

May 6, 2017 at 7:28 pm

Welcome!

Reply

108. muthu mariappan says:

May 14, 2017 at 8:21 am

Very clear and useful Sir.

Reply

Karthik Rangappa says:

May 15, 2017 at 1:30 am

Cheers!

Reply

109. Ashish srivastava says:

May 17, 2017 at 7:18 pm

Is it possible to plot 30 min and 15 min ema in zerodha kite?

Reply

Karthik Rangappa says:

May 18, 2017 at 10:34 am

Of course it is possible. You can watch this for now – https://www.youtube.com/watch?

v=5M232FaN5Ks&list=PLkxTRam6E2V-okv6gwQlt6dLTsn0v6CD1&index=10&t=9s , we are
soon replacing this with a new video.

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110. Mahesh says:

May 19, 2017 at 12:30 pm

i want to place 4 hour or 5 days moving average on 5 minute chart in kite ,how can i do this

Reply

Hanan Delvi says:

May 19, 2017 at 5:56 pm

To see an hourly moving average on a 5 minute chart, you need to multiply by 12 (60 min in hr
divided by 5 min candle) so this will be around 252 and it will need to be entered into the moving
average value box on the 5 min candle chart, Hope this helps.

Reply

Mahesh says:
May 20, 2017 at 2:36 pm

252??? i think for 4 hour ema on 50 mi chart it should be 48 ema .(60 mi *4 hours=240
mi/5mi=48), & anything for 5 days eod ema on 5 mi chart in kite

Reply

111. Arghya1990 says:

May 24, 2017 at 6:16 pm

Instead Of Crossover Can Traders Use Only 50 Day EMA? Considering That The Price Closes Above 50
Day EMA And That Too Pretty Much In The Support Zone With Almost 50% Extra Volume Than It’s 10
Days Average Volume?

Reply

Karthik Rangappa says:

May 25, 2017 at 8:25 am

Yup, that is possible.

Reply

112. KUMAR MAYANK says:

June 8, 2017 at 11:00 am

Hello sir

How could we add moving average on volume chart in Kite or Pi?

Reply

Karthik Rangappa says:

June 8, 2017 at 12:13 pm

Suggest you drop in email to [email protected] , he will be able to help you out.
Thanks.

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113. TK says:
June 11, 2017 at 11:58 pm

Hi, I have been following these modules and they are just great. The explanation and examples are simply
amazing. I have a little doubt here and I guess I am totally confused with the below information…

Rule 1) – Buy (fresh long) when the short term moving averages turns greater than the long term moving
average. Stay in the trade as long as this condition is satisfied
Rule 2) – Exit the long position (square off) when the short term moving average turns lesser than the
longer term moving average

From the graphs it appears that it is profitable to go long when short term moving average is lesser than
the long term (because share prices are low) and square off when short term goes higher than the long
term (because current prices are higher). What am I missing?

Reply

Karthik Rangappa says:

June 12, 2017 at 10:58 am

Crossover of moving averages gives you more conviction for the ensuing trend. When the short
term MA is lower, the chances of the trade going sour is higher. Hence its better to wait for the
crossover.

Reply

114. KUMAR MAYANK says:

June 20, 2017 at 9:09 pm

Hello sir
I have a little confusion in moving average. When we analyse day chart and use 50 MA it means we are
using 50 days MA. Now when we are using 5 min chart for intra day and using 50 MA, what does 50
stand for? Does 50 MA mean past 50 min data or 50 sticks each of 5 min?
Varsity student
Thank you

Reply

Karthik Rangappa says:

June 21, 2017 at 4:57 am

It means you are looking at the average of the last 50, five mins candle

So generally speaking, if you are looking at last n period moving average for x frequency, then
essentially its the n period moving average of the last x candles. Hope I dint confuse you with that!

Reply

KUMAR MAYANK says:

June 21, 2017 at 9:52 am

If the frequency is 5 min and i am looking for 20 MA it means 20 candle sticks having 5 min
of frequency. Right? And if it is true then i am looking for past 5*20= 100 min data?
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KUMAR MAYANK says:

June 21, 2017 at 10:03 am

What i want to say is if i am using 75 MA for 5 min candle stick , i am looking for last
one day data, for 150 MA i am looking for last 2 days. ( No of 5 min candle sticks in
one day= 75)

Reply

Karthik Rangappa says:

June 22, 2017 at 8:03 am

No, as I said it is not a straight forward multipication. In this case the system will
calculate the average closing of that last 75 data points and plot the value on 76th
day.

Karthik Rangappa says:

June 22, 2017 at 8:00 am

Yes, you are looking at 20 period average 5 mins candles. No, 5*20 does not mean 100
min data. This is not a straight forward multiplication.

Reply

115. Prashant says:

June 20, 2017 at 11:11 pm

Hello Karthik,
Is EMA is available on Kite ? Since i did not find anything like EMA on Kite there is just one thing
available called Moving Average, if it exits on Kite can you please tell me from where to access it?

Reply

Karthik Rangappa says:

June 21, 2017 at 4:59 am

Of course its available. Load a chart, select Moving averages from studies and change the type to
exponential, and you are good to go

Reply

PRASHANT SAMAL says:

June 21, 2017 at 12:19 pm

Thank you .. now its perfect..! I have been doing some thing similiar.. Now more smooth with
Expo

Reply

Karthik Rangappa says:

June 22, 2017 at 8:08 am

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Good luck, Prashant!

Reply

Ankit Jain says:

October 2, 2017 at 8:19 pm

Hi,
In Kite I can see Moving averages as a study but in Pi all I see is moving average envelope.
Why is the difference?

Reply

Karthik Rangappa says:

October 3, 2017 at 11:17 am

They are two different charting engines, Ankit.

Reply

Ankit Jain says:

October 6, 2017 at 11:33 pm

Hi Karthik,
Thanks for your response, but could you explain a bit more about the engines and
does that mean Pi will not be able to show EMA?

Karthik Rangappa says:

October 7, 2017 at 4:13 pm

Charting engines are programs which power charting on trading platforms. EMA
does work on Pi.

116. Nishitha Rajendran says:

July 8, 2017 at 2:10 pm

First of all thank you very much for all modules which is highly informative. However, I would like to
know if there is Demo account for trading practice and video classes for this technical analysis.

Thank you Karthik for the support.

Reply

Karthik Rangappa says:

July 8, 2017 at 4:50 pm

Thanks for the kind words, Nishitha. Unfortunately, there are no demo accounts. But we do have a
ton of videos on our youtube channel. Check this out –
https://www.youtube.com/user/zerodhaonline/playlists

Reply

sathya nr says:
July 22, 2017 at 4:37 pm
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YOU CAN TRY NSE PATHASALA FOR MOCK TRADING PRACTICE. I FIND IT A GREAT
TOOL TO KNOW HOW WE ARE GOING TO PERFORM IN REAL LIFE TRADING. LINK IS
THERE IN NSE SITE

Reply

Karthik Rangappa says:

July 23, 2017 at 3:52 pm

I’ve heard good thing about NSE pathasala too

Reply

117. Raghav Kumar says:

July 10, 2017 at 5:50 pm

The content is great and way it is presented is impeccable. I thank you for creating such an enriching
resource. Can you please tell me which tool do you use for plotting? I will be grateful.

Reply

Karthik Rangappa says:

July 11, 2017 at 11:03 am

Thanks for the kind words, Raghav. I use Zerodha’s Kite platform for charting.

Reply

118. Sourav Sen says:

July 30, 2017 at 8:30 pm

Sir, I trade in mcx metals mostly I use 15 minutes chart.. I want to ask that is it possible to trade in 1day
candle basis.. Is it safe to enter a any intraday position

Reply

Karthik Rangappa says:

July 31, 2017 at 10:56 am

You can look at EOD data, in fact, if you ask me this is a better approach.

Reply

Sk says:
July 31, 2017 at 5:31 pm

Sir how to write script for triple crossover 15,21,34, to get alerts or to backrest? Can u please
guide..

Reply

Sk says:
July 31, 2017 at 5:32 pm

*backtest

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Reply

Sourav Sen says:

July 31, 2017 at 7:24 pm

Sir What is EOD data?where I can find it?

Reply

Karthik Rangappa says:

August 1, 2017 at 10:49 am

End of day data is called EOD. You can see the EOD data on kite itself.

Reply

119. Sourav Sen says:

July 31, 2017 at 10:50 pm

Sir I want to ask you a question personally that sir I made a lot of loss in this day trading I’m not good at it
but I learned all technical analysis indicators and all by help of zerodha varsity but still I’m in loss, sir I’m
very beginner in this market most probably 6 months.i’m 22 years guy . But my capital Is all about to end
I’m struggling sir from 150000 lakh rupess now I have only 30000 rupess.. Sir can you tell me that how
can i recover my capital any strategies.. Please sir please help me to find a right way.. My email Is
[email protected] sir if you want then you can pm me or you can tell me here.. Please sir

Reply

Karthik Rangappa says:

August 1, 2017 at 11:04 am

Sourav, I’m really sorry this happened. My guess is that you have over traded without a proper
thesis. Recovering 1.5L from 30K is a huge task and I’ve explained why here –
https://zerodha.com/varsity/chapter/position-sizing/

I’d suggest you take a break, get your act right and then approach the market with a fresh mind.

Reply

120. Sourav Sen says:

August 1, 2017 at 1:29 pm

Thank you very much sir. I read very carefully those information you gave me.. I exactly did same as
poker game.. Now I understand thank you for that information..

Reply

Karthik Rangappa says:

August 3, 2017 at 1:18 pm

Good luck, Sourav!

Reply

121. gautham pai says:

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August 12, 2017 at 4:48 pm

excellent writing and explanation for beginners in trading. of all the material I read its the best!

Reply

Karthik Rangappa says:

August 13, 2017 at 8:19 am

Thanks, Gautham!

Reply

122. Shashank says:

August 24, 2017 at 1:14 pm

Hi Sir,

The moving average study given in zerodha is simple moving average or exponential moving average?

Thanks,
S

Reply

Karthik Rangappa says:

August 25, 2017 at 8:33 am

Both.

Reply

123. M.Ramesh Muruganathan says:

August 24, 2017 at 8:26 pm

Dear sir,
in this chapter you say 15×30 minutes cross over for intraday. but in MA the minimum period is 1 day
how can we fix 15×30 minutes crossover or 5×10 minutes cross over.

Reply

Karthik Rangappa says:

August 25, 2017 at 8:50 am

You can select 15 and 30 MA frequency from the drop down.

Reply

124. Jitu says:

August 26, 2017 at 9:37 pm

Excellent explanation on SMA & EMA I read first time for average trading. It clears all my doubts

Reply

Karthik Rangappa says:

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August 27, 2017 at 11:11 am

Glad to know that Jitu

Happy learning.

Reply

125. sansriti says:

August 27, 2017 at 11:20 pm

Hi Karthik
I understood that MAs are good indicators for going long on a stock. Does that same hold for shorting
too? Is it a good option to short when short term moving average goes lower than the long term moving
average?
Also, I am new to trading so I wanted to understand how exactly going short works. In a call, we have the
actual possession of the stock, and we can sell later whenever we want. But in shorting, do we have to
compulsorily close the trade the same day itself? Or is it possible to carry it for 2-3 more days/weeks?

Reply

Karthik Rangappa says:

August 28, 2017 at 10:53 am

Yes, it does. You can use MA to short stocks as well. I’d suggest you look at the explanation on
shorting here – https://zerodha.com/varsity/chapter/commonly-used-jargons/ and then here –
https://zerodha.com/varsity/chapter/shorting/

Reply

126. Shankar says:

August 29, 2017 at 9:24 pm

Hello sir,
In 9×21 ma, if 9ma is already above the 21ma.. How to decide the entry then?
As the stock is in uptrend cause its 9ema is already 21 ema can u pls suggest when to enter

Reply

Karthik Rangappa says:

August 30, 2017 at 10:44 am

You will have to wait for the cross over to occur.

Reply

127. sanu says:

September 6, 2017 at 6:21 pm

how to set multiple moving average like 50, 100, 200 in kite?

Reply

Karthik Rangappa says:

September 7, 2017 at 10:51 am

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Check this – https://www.youtube.com/watch?

v=5M232FaN5Ks&index=10&list=PLkxTRam6E2V-okv6gwQlt6dLTsn0v6CD1

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128. venkatpai says:

September 16, 2017 at 9:33 pm

EMA lines when viewed through charts on KITE on desktop , are very thin and almost not visible . Why
don`t you give us an option to increase the thickness of the line so that they are always visible boldly .
When the same EMA line viewed on Android mobile, thickness of lines is OKAY but would like it to be
bolder / thicker — Kindly give us the option of selecting line thickness on desktop & mobile

Reply

Karthik Rangappa says:

September 17, 2017 at 8:38 am

The lines are quite thick already, anything thicker than this can get quite distracting. Don’t you
think?

Reply

venkatpai says:
September 17, 2017 at 9:09 am

Issue is when you choose multipe EMA and give multiple colours,
For single EMA , line becomes bold when you hoover mouse above it.
Difficulty is when having 2 or more EMA`s I cannot hoover my mouse, above all EMA`s
simultaneously, to check crossovers
On desktop its not visible properly even when you enlarge the area
On Investing.com website , see how they allow you to increase line thickness as per your
need. Its an excellent idea

Reply

Karthik Rangappa says:

September 18, 2017 at 10:08 am

Got it, will pass on the feedback to Kite team.

Reply

129. J D Thakar says:

September 17, 2017 at 9:27 pm

I have shifted to Zerodha recently, as it was recommended by one of my friend. Main reason was the
flexibility it allows and this study material, which is simple to understand for a novice trader like me.
Thank you for this study material.
I have one question on EMA. This tool seems to be a effective way to decide on trades. However, is it
available in Zerodha account or it needs to be purchased separately. I mean unless I have the chart, I will
be unable to decide on trade. OR is it that I will have to manually calculate and plot graphs in Excel.
Please guide.

Reply
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Karthik Rangappa says:

September 18, 2017 at 10:36 am

Thanks for the kind words, JD Thakar!

EMA is an integral part of the charting engine in Kite. No need to pay for it. I’d suggest you look at
videos on Kite here – https://www.youtube.com/watch?v=1Jy23XfKwG8&list=PLkxTRam6E2V-
okv6gwQlt6dLTsn0v6CD1

Reply

130. ARUN says:

September 18, 2017 at 3:31 pm

Hi karthik,
5 days EMA is calculated as by taking closing price of 1st,6th,11th,16th,21st/ 5 (assuming there is no
holidays in between ). Am i right????

Reply

Karthik Rangappa says:

September 19, 2017 at 11:16 am

It’s calculated taking the latest 5 days closing average.

Reply

131. Waseem says:

September 26, 2017 at 7:28 pm

One should prefer SMA crossover system or EMA crossover system?

And for exiting signal while using EMA crossover system when should one check the chart like end of the
day depending on the closing price or should check from time to time during the trading day and exit the
trade depending where the current price is??

Reply

Karthik Rangappa says:

September 27, 2017 at 11:25 am

I personally prefer EMA crossover on an EOD basis. However, if you have a trade live, then
tracking it during market hours helps in better management.

Reply

132. himanshu says:

October 24, 2017 at 8:21 pm

for the intra day study the 9×21 , so here 9 and 21 in the day only? right? EMA unit is only in days right?
hope i unestand it right

Reply

Karthik Rangappa says:

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October 25, 2017 at 10:48 am

If you load 9 x 21 on an EOD chart, then 9 and 21 will represent days….however, if you plot this on
a 5 min chart, then 9 and 21 will represent 9, 5 mins chart and 21, 5 mins chart.

Reply

himanshu says:
November 2, 2017 at 9:39 pm

thanks for the reply. but can u please explain what is it.and what is offset or and field. and
why i set to EMS then it is automatially set to SMA only? thanks in advance.

Reply

Karthik Rangappa says:

November 3, 2017 at 10:34 am

Ah, I’ll try and put up a note on this shortly, Himanshu.

Reply

133. SUNIL says:

October 28, 2017 at 12:04 pm

Mr Rangappa
Your observations are very good a person will never make loss if he follow this system in trading ,i am
using this 30 to 50 hourly time frame even he will have losses it will be recovered very soon but one
support he must take is of fractals ,and ADX and DI crossings .

Thanks for what you have written here .In my opinion this is one of the best methods of trading .
Your opinion on fractals and ADX DI indicators in Kite zerodha it is doing fine.
Thanks
sunil kumar minz

Reply

Karthik Rangappa says:

October 28, 2017 at 12:35 pm

Happy learning Sunil. Remember, there is no foolproof trading technique – always watch out for
risks

Reply

SUNIL says:
October 28, 2017 at 1:46 pm

Stop loss is there to cover risk,here fractals comes to play and ADX indicator ,that,s my
question for you i just wanted your opinion in using these indicators as your total article on
moving averages is very very help full and superb.Because i want to enhance my lots with 10
to 15 lots of nifty and bank nifty futures,i wanted your opinion.
Thanks again

Reply

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Karthik Rangappa says:

October 29, 2017 at 11:05 am

I’ve heard about fractals, but have no experience trading based on that. So I’m not sure
if I can give you any meaningful inputs.

Reply

SUNIL says:
October 30, 2017 at 8:55 am

Thanks

Karthik Rangappa says:

October 30, 2017 at 2:32 pm

Cheers!

134. Amit Kapoor says:

November 3, 2017 at 1:44 pm

I have a question on the EMA cross over strategy. When the faster moving EMA has crossed above the
slower moving average we will create a long position. When the faster average moves below slower we
square of the position.

After squaring off do we create a fresh short position at that point ?

Reply

Karthik Rangappa says:

November 3, 2017 at 6:41 pm

You can, in fact, many active traders do – it really depends on your capital and risk appetite.

Reply

135. Alok says:

November 3, 2017 at 2:45 pm

Hi, I have Query.

so for the “50 day EMA with 100 Day EMA” (Few months) and “100 day EMA with 200 Day
EMA”(long term) in these scenarios we can only go long, Right? Thanks

Reply

Karthik Rangappa says:

November 3, 2017 at 6:42 pm

You can always change the time period!

Reply

136. Alok says:

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November 3, 2017 at 2:50 pm

Hi, how do I add EMA (say 50,100 or 200) and volumes info. in the Charts in the Kite. Thanks.

Reply

Karthik Rangappa says:

November 3, 2017 at 6:45 pm

Load the moving average, select the ‘Volume’ in the field section instead of the default which is
‘open’.

Reply

137. Alok says:

November 3, 2017 at 3:12 pm

Hi, What if 50, 100, 200 EMA never intersect for almost a year. what does that signify.(example Dilip
Buildcon)

Reply

Karthik Rangappa says:

November 3, 2017 at 6:46 pm

Well, that means the stock is trending and there are no signals to trade. The only option is to reduce
the frequency and look for shorter term signals.

Reply

138. Alok says:

November 6, 2017 at 3:29 pm

Hi, Suppose I have gone long when the faster EMA crosses and is above the slower EMA
How does one determine the target price using the “Moving average crossover system” for example “9
day EMA with 21 day EMA” or “50 day EMA with 100 Day EMA”. Thanks.

Reply

Karthik Rangappa says:

November 7, 2017 at 10:18 am

If its purely a MA crossover system, then you will have to wait for the reverse to happen i.e wait for
the faster to move below the slower MA.

Reply

Alok says:
November 7, 2017 at 11:02 am

Thanks. Really appreciate the effort you and your team are putting in. Please keep up the
good work.

Reply

Karthik Rangappa says:

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November 8, 2017 at 10:36 am

Cheers!

Reply

Nishant says:
November 24, 2017 at 1:12 pm

Hi Karthik,

This chapter has been quite an eye-opener for me. At least, now I am confident
that we can create good trading systems. I have been backtesting MA crossover
system and it seems to give good results for many stocks on NIFTY. Yes,
whipsaws are there but then it also lets one ride on rallies. Thank so much.

My question, how does one set a stoploss and target while placing orders, say on
a Zerodha platform like Kite?

Unlike candlestick patterns used with Support/Resistance, the MA crossover

system in advance doesn’t really give us any target or stoploss. How do we
approach this situation then?

Does Bracket order make more sense to be used in this trading system because it
has the option to add a trailing stoploss? Even, with trailing stoploss what should
be the approach to set a target in advance if we aren’t able to monitor the chart
minute by minute?

Karthik Rangappa says:

November 24, 2017 at 3:25 pm

Nishanth, you can always use S&R for identifying target and stoploss. Also, the
idea with MA is to follow the trend, given this, there is no way you can identify a
target or stoploss. You just ride the wave, as long as it lasts.

BO makes sense if you doing intraday.

139. SUNIL says:

November 9, 2017 at 6:16 am

Hi There Mr rangappa
In my viewpoint larger time frame MA crossover works fine for investments and especially for stocks e.g.
50 day and 100 day or 20 day&50 day.while for trading purpose 20 hourly and 50 hourly for trading . your
opinion,please.

Reply

Karthik Rangappa says:

November 9, 2017 at 11:29 am

Yup, I agree with you.

Reply

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SUNIL says:
November 9, 2017 at 1:41 pm

Thanks
This type of support gives moral booster that i am not totally on wrong side,as i am doing fine
with my trade and investments,losses are inevitable but small losses and big gains should be,
our motto.

Reply

Karthik Rangappa says:

November 10, 2017 at 10:56 am

True! Good luck, Sunil.

Reply

140. SUNIL says:

November 11, 2017 at 5:01 pm

Congratulations zerodha team and many many thanks.

You guys are so prompt in updating the e kyc parameters amazing really fantastic .I updated my aadhar
updation today it hardly took 5 minuts to complete it ,you guys know how to do things .Though this not
the right place to write such words,but z connect is not updated since 17th aug,17.
Thanks again.

sunil kumar minz.

Reply

Karthik Rangappa says:

November 12, 2017 at 10:17 am

Sunil, thanks for the kind words, I’ll pass that compliment to our beautiful technology team

Lots of work getting done in the background, Z-Connect will be updated with all that info soon.

Reply

141. DEWAN MOFAJJAL HOSEN says:

November 15, 2017 at 2:27 pm

EMA CROSSOVER WHICH IS BETTER FOR SWING TREAD.

Reply

Karthik Rangappa says:

November 16, 2017 at 11:32 am

I’d prefer EMA crossover for overnight position panning across multiple days.

Reply

142. sreeni says:

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November 18, 2017 at 7:52 pm

Hi Sir,
for intraday what is best settings for MA, EMA, Supertrend? Which indicator is better to use for intraday?

Reply

Karthik Rangappa says:

November 19, 2017 at 9:33 am

I’d suggest you stick to EMA. My personal preference is 9 over 21-minute candles.

Reply

143. Sainath says:

November 19, 2017 at 4:50 pm

Hi Karthik
Back with another query, Please correct me. The below details for EMA cross-over

1. Intraday – 9x 21 day EMA on 10 or 15 Min Chart look back of 3 to 6 months

2. Swing Trader – 25 x50 day EMA on 1 hour chart with look back of 3 to 6 months
3. Short term – 50×100 Day EMA on 1 day chart with look back 1 year
4. Long term – 100×200 day EMA on 1 week Chart look back 3years+

Also is it possible to add MA on Volume chart in pi.

Thanks & Regards

Reply

Karthik Rangappa says:

November 20, 2017 at 11:09 am

1) Intraday – 5-8 trading sessions is fine

2) Swing trading – EOD is good, at least 3-6 months charts
3) Yes
4) Yes

Reply

sainath says:
November 20, 2017 at 11:41 pm

Thanks Karthik

Reply

Karthik Rangappa says:

November 21, 2017 at 12:38 pm

Cheers!

Reply

144. Abudhar al Hassan says:

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November 20, 2017 at 9:10 pm

Hi Karthik,
We have interacted on another forum as well.
Would appreciate if you could furnish me with the tradescript code for calculating DEMA and TEMA. I
have the formula but I am unable to compile EMA of EMA i.e. EMA(CLOSE,EMA(CLOSE,50)) in Pi.
The argument required is ‘periods’ but I guess the EMA(CLOSE,50) returns a vector. Is there any math
function to convert the vector into integer (or period)? I went through the tradescript guide but in vain. Or
is there a direct DEMA/TEMA function that we can access? Any help would be highly appreciated.
Thanks.

~Abudhar al Hassan.

Reply

Karthik Rangappa says:

November 21, 2017 at 11:52 am

I’d suggest you email my colleague Srini for this – [email protected] . Thanks.

Reply

Abudhar al Hassan says:

November 21, 2017 at 1:59 pm

Did that. Thank you very much.

~ Abudhar al Hassan.

Reply

Karthik Rangappa says:

November 22, 2017 at 10:55 am

Good luck!

Reply

145. esan says:

November 21, 2017 at 8:58 pm

karthik for crudeoil trading what ema crossoverwould you prefer for 15 min,1 hour,daily timeframe

Reply

Karthik Rangappa says:

November 22, 2017 at 11:12 am

15mins would be good for intraday.

Reply

esan says:
November 22, 2017 at 11:41 am

karthik i am asking ema crossover values for above question

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Karthik Rangappa says:

November 23, 2017 at 10:56 am

Got it. I think the 9 and 21 over 15M EMA will be good, at least for a start.

Reply

146. PavanKumar says:

November 23, 2017 at 10:57 pm

I’m using 9 day EMA with 21 day EMA for intraday. I need your suggestion what is the time frame along
with this should be used.
Thanks for the material and this helps me a lot.

Reply

Karthik Rangappa says:

November 24, 2017 at 3:13 pm

Try the intraday chart of 10 or 15 mins for the last 5 trading sessions.

Reply

Prakhar says:
December 1, 2017 at 12:36 pm

Can you elaborate what does trading sessions refer in above context

Reply

Karthik Rangappa says:

December 2, 2017 at 10:56 am

The times when markets are open is referred to as a trading session. For example, we
have 5 trading session, Monday to Friday between 9:15 AM to 3:30PM.

Reply

147. esan says:

November 26, 2017 at 4:06 pm

karthik build some strategy upload page so that traders can benefit from it..

Reply

148. Prasanna says:

December 21, 2017 at 6:13 pm

Sir Which is the Golden Cross Over?

I Have Asked Many People and Each One has a Different Answer For the it.

Reply

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December 22, 2017 at 11:40 am

A golden Crossover is when a 50 day moving average crosses over a 200-day moving average.

Reply

149. Sai kiran Garapati says:

December 24, 2017 at 8:26 pm

Hi Karthick

can i use this MA cross over for Crypto currency also? What is your advice as cryptos are very volatile?

Reply

Karthik Rangappa says:

December 25, 2017 at 2:06 pm

The basic premise of TA is that it can be used on any asset which has time series data, so given this,
you can apply TA on Crypto, in fact, I’ve seen people using TA on Crypto. But the swings are wild
and your stoplosses / target needs to be deep.

Reply

150. Sreeni says:

December 25, 2017 at 4:16 pm

Hi Karthik, Thanks for educating us.

I have one query. I trade in crude using 30 minutes mostly for intraday (Sometimes 1 to 2 days). is it ok to
use 9 * 21 EMA and what difference does it make between using 15 minutes chart v/s 30 minutes chart.
please explain

Reply

Karthik Rangappa says:

December 25, 2017 at 7:32 pm

Yes, 9*21 EMA works, however, I’d suggest you do your backtesting once. Generally, higher the
time frame better is the quality of signal…hence I’d prefer to use the 30 mins versus the 15 mins
chart.

Reply

151. Basant Sharma says:

December 29, 2017 at 10:23 am

Hi sir I just wanted to know can we do intraday trading for new issued IPO in the market i.e the same day
on which it was listed.Could you help with that? Do we need to subscribe the IPO beforing listing?

Reply

Faisal Mohammed says:

December 29, 2017 at 10:54 am

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Yes, you can trade intraday once the stock is listed on the exchange. Just make sure that the stock
doesn’t belong to Trade to Trade category

Reply

152. tarujit nandy says:

January 9, 2018 at 11:42 am

sir can i use ma 5 or 10 or in 1min chart?

Reply

Karthik Rangappa says:

January 10, 2018 at 10:50 am

Yes, you can.

Reply

153. DharaniDharan says:

January 13, 2018 at 12:26 pm

Dear Sir,
How to apply the 5 X 10 Minutes cross over in KITE platform?

Reply

Karthik Rangappa says:

January 14, 2018 at 9:59 am

All you need to do is to load two moving averages on the same chart i.e the 5 and 10 mins chart.
Once you have these on the charts you will know when the crossover happens.

Reply

154. Gyan says:

January 23, 2018 at 6:14 am

Hi Karthik – it is said that MA system works in trending market. Does it matter whether trend is up or
down with respect to trade signal? I mean suppose stock is in UP trend but stock price cross EMA from
+ve to -ve(may happen once stock made top), should we go for shorting?

Reply

Karthik Rangappa says:

January 23, 2018 at 7:54 am

Not really, MA system just confirms the trend – and the trend itself can be an uptrend or a
downtrend. You can short provided you have the staying power – cause the trend can last for few
weeks.

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155. Suraj says:

January 26, 2018 at 8:09 pm

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The plain vanilla single MA seems to be more profitable than the cross-overs.
The crossover lags too much and the sell signal in the above charts is more or less near the buying level or
even lower sometimes.
If we look at the price level when those cross-overs took place we don’t really see cross-over making any
sense.

Is it just the above examples or this is the inherent issue with crossover strategy?

Reply

Karthik Rangappa says:

January 27, 2018 at 3:45 pm

Agreed, especially if you have the stomach for sideways movement.

Reply

156. abhishek kumar sah says:

February 1, 2018 at 8:02 pm

Lets say my trading rule is to exit if the price traces back to 30 EMA. Now next day split is announced say
6:35. so the price opens below 30 EMA, but i know that this is not a retracement but due to the split. So
how should i discount this factor and adjust my exit strategy? If you can give any new idea?

Reply

Karthik Rangappa says:

February 2, 2018 at 11:17 am

For this, you need to look at the split-adjusted (or bonus adjusted) charts.

Reply

abhishek kumar sah says:

February 2, 2018 at 2:00 pm

where can i find bonus adjusted chart for split adjusted chart?

Reply

Karthik Rangappa says:

February 3, 2018 at 5:24 pm

Your charts will be adjusted for it.

Reply

157. Nitish Raj says:

February 8, 2018 at 4:42 pm

Dear SIr,
Presently i am using kite version 3 for trading but I am unable to set time frame of 15 min (EMA) in as it
has least count of 1 day.
Plz help.

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Karthik Rangappa says:

February 9, 2018 at 7:24 am

Not really, Nitish. Load the chart for 15 mins and overlay with MA, set the period as 15, and you
will be good to go.

Reply

158. satish says:

February 13, 2018 at 8:14 pm

Hi Karthik,
Can we use this system for only going long or can we also do shorting as well using EMA’s

Reply

Karthik Rangappa says:

February 14, 2018 at 11:32 am

You can use this for shorting as well, Satish. But works best with futures.

Reply

159. arjun says:

February 20, 2018 at 5:39 pm

dear sir
how do i draw emacrossover on kite

Reply

160. Guhan says:

February 22, 2018 at 12:45 pm

Hello sir, in one of the discussions you have mentioned to set trailing stoploss based on smaller moving
average, Can you relate the same for crossover of 9 x 21?

Reply

Karthik Rangappa says:

February 22, 2018 at 1:24 pm

Sorry, not really sure what you mean by this.

Reply

Guhan says:
February 22, 2018 at 1:58 pm

in a discussion you suggested to use short term moving average to trail the stoploss to lock
profits. So in a 9 x 21 crossover system what could be the short term moving average that
could be used to trail stop loss Sir?

Reply

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Karthik Rangappa says:

February 23, 2018 at 11:37 am

The 9×21 EMA is quite a short term already, not sure if deploying another MA on this
system is justified.

Reply

Guhan says:
February 22, 2018 at 2:07 pm

I am very new to share market Sir, varsity inspired me to trade Sir. While backtesting I found
that it is difficult to test a strategy with stoploss and trailing stoploss, so my question is ‘Is
there any quantitative way to fix stoploss and trailing stoploss for MA crossover strategy?’

Reply

Karthik Rangappa says:

February 23, 2018 at 11:40 am

Check this – https://zerodha.com/varsity/chapter/volatility-applications/ , volatility

based stop loss.

Reply

161. Siddharth says:

February 24, 2018 at 4:32 pm

Hi Karthik,

I have a question regarding the trade setup while only relying on the cross-over MA trading system.
Suppose, I’m interested in a short-term trade, thus using a 9 x 21 EMA. I take a long position when the 9-
EMA breaches the 21-EMA. What would be the trade set-up at this point as the market would be higher
than the intersection point of the EMAs?

Suppose, the market is trading at ₹107 and the intersection points of the two EMAs is ₹102. Would the
following trade-setup make sense?

Buy at ₹107 (the market) and the stop-loss at ₹102 (the intersection point).

Reply

Karthik Rangappa says:

February 24, 2018 at 6:41 pm

Yes, buying at 107 with 102 as SL is perfectly valid. Also remember, MA is a lagging indicator,
hence the signal to buy or sell is always delayed.

Reply

Siddharth says:
February 26, 2018 at 12:45 pm

Thanks Karthik.

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I backtested this particular algo on Streak and didn’t get good results.

Scrips – SUNPHARMA NSE, ICICIBANK NSE, ITC NSE, INFY NSE, RELIANCE NSE
Initial Capital -10000000
Quantity – 100
Stop Loss – 1%
Target Profit – 0.5%
Order Type – MIS
Candle Interval – 1 Hour

Algo – Buy when 9EMA crosses over 21EMA and exit when 9EMA crosses down 21EMA.

I don’t see good results for the period – 27/2/2017 to 26/2/2018

All of them results in losses. Any way I can improve this or can you shed more light on this
algorithm and how to use it correctly. Thanks.

Reply

Karthik Rangappa says:

February 26, 2018 at 5:52 pm

Firstly, a SL of 1% against a target of 0.5% is not a great idea. The risk-reward just
does not match. It should be the other way round.

Although I admire MA for its simplicity, I’d also suggest you overlay this with
candlestick pattern.

Reply

162. Dhananjay Chaudhari says:

February 26, 2018 at 1:04 pm

How to plot 15 by 30 minu

Reply

163. Dhananjay Chaudhari says:

February 26, 2018 at 1:09 pm

How to plot 15 by 30 min crossover?

Reply

Faisal Mohammed says:

February 26, 2018 at 6:03 pm

In a Kite chart, click on Studies, search for Moving Average and enter the period as 30.
Repeat the same process and enter the period as 15. You can choose different colours to recognise
the crossover

Reply

164. Nishant Sharma says:

March 5, 2018 at 9:05 pm

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Hi Karthik

First of all, heartfelt thanks to you and Zerodha for introducing us to stock trading fundamentals in such an
informative and lucid manner. I had a query on MA – volume charts on kite are in blue and red unlike the
all blue charts shown in demonstration. Now as you told volumes correspond to the number of shares
bought not sold in a time period so how do we track in dual coloured charts -what does the large red
coloured bars reflect – high volumes of selling and thus smart money exiting … is it? If not, can we switch
to single coloured volume charts on zerodha.

Please guide. Thanks in advance.

Reply

Faisal Mohammed says:

March 8, 2018 at 7:50 pm

The colour of the volume denotes the price action on the stock (if the close is higher than previous
day’s close, it is a blue bar, otherwise red) for that timeframe.

Reply

165. Pankaj says:

March 7, 2018 at 8:17 am

Hi karthik, I have a little doubt, I would like you to clear it please.

My Question is – It is mentioned that faster moving average i.e with shorter time period is more
susceptible to the new data than the slower moving average or with larger time interval but I am not able
to find the mathematical proof behind this, I even tried to to proof by myself but no luck. Would you give
me the reason behind the assumption ?

Reply

Karthik Rangappa says:

March 7, 2018 at 11:14 am

Pankaj….do this. Take a random data array of 30 data points, plot 9 and 21 day moving average.
Include a large data as 31st data point and see how both the averages react.

Reply

166. Bhoopal says:

March 11, 2018 at 5:38 pm

Hi Karthik
First of all let me thank Zerodha Team for providing excellent technical information & thank you also for
giving replies on all queries patiently, just now I have gone through MA chapters based on which trade
can be initiated at crossovers at different time frames,say 15 – 30 mnts time frame with 9EMA X 21EMA
for intraday then what should be target & stop loss points based on different MA cross overs? because a
full time employee may not find time to watch position continuously !! after trade is initiated stock/index
price may rise and come to back to same price where trade was initiated or even it can go below that also
in that case that there may be huge loss if trade is in futures ,just for time being let us ignore profit /target
but what about losses then how to avoid /arrest such big losses which can happen within minutes due to
any unforeseen market conditions?

I hope you will reply me with best solution for the same.
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Karthik Rangappa says:

March 12, 2018 at 11:14 am

Thanks for the kind words, Bhoopal.

The moving average system you are talking about comes with its own sent of stoploss and target.
YOu just have to follow the crossover on the two lines and follow through, and the system will
guide you when to enter and exit. In fact, all trading systems come with their own SL and target.

The stoploss and target is applicable when you trade based on candlestick patterns or any other price
charts.

Reply

Bhoopal says:
March 13, 2018 at 12:22 pm

Hi Karthik,
Thanks for your reply ,but still I have some doubt for example “x” stock opened @ Rs.500
whose high & low prices were Rs. 520 &Rs. 510 respectively on 15 mnts candle time frame
and later crossover was happened at Rs.515 at which I have initiated the trade, now should I
fix SL as Rs.510/- based on previous candle low & target as per EMA next crossover ?

Pls clarify & I will be grateful to you if you can cite an example in your reply based on MA
crossovers.

Reply

Faisal Mohammed says:

March 13, 2018 at 4:32 pm

It is best that you follow the MA trend and accordingly exit the position(either Stoploss
or Target) when there is a reverse crossover.
If your having issue with actively following the positions, you need to develop a trading
system with a different indicator that gives you a fixed stoploss that you could set while
setting up the trade (possibly Fibonacci retracement lines)

Reply

167. Amit says:

March 14, 2018 at 7:02 pm

I am using 3 min chart, so please tell me which one is best setting for crossover moving average and
which setting neet to be require like simple, exponential or etc..

Reply

Karthik Rangappa says:

March 15, 2018 at 10:33 am

Amit, 3 mins is too short according to me. Please try 15 min at least.

Reply

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168. DharaniDharan says:

March 15, 2018 at 8:34 am

Hi, Can anyone explain weighted moving average (WMA) ?

Reply

Karthik Rangappa says:

March 15, 2018 at 10:45 am

Will try an include a supplementary note on this. Thanks.

Reply

169. Aadesh Shetty says:

March 17, 2018 at 5:15 pm

Hey, Greetings of the day!!

In all the above mentioned trading systems (especially crossover EMA), considering a stock whose prices
fluctuate frequently, by the time the shorter EMA rises above the other, the prices would already have
risen considerably. Aren’t we missing out on chances of booking higher profits already.

In most of the cases in the above graphs, the prices have been hesitated while the shorter EMA is above
longer EMA.

Reply

Karthik Rangappa says:

March 18, 2018 at 12:56 pm

Yes, that’s the reason this is called a lagging indicator. The reason one would trade using these
systems is to capture a part of the larger move…and not the entire move.

Reply

170. Ankur kumar says:

March 17, 2018 at 11:47 pm

Is there any was to set positive moving average and negative moving average with different colors in Pi.
(By positive moving average i mean suppose we are on daily chart if 20d moving average for today is
more than the 20d moving average of yeserday.)

Reply

Faisal Mohammed says:

March 18, 2018 at 5:42 pm

Ankur, isn’t it easier to read the movement by looking at the moving average line itself? If it has
moved up or down from yesterday’s candle

Reply

171. Himanshu says:

April 4, 2018 at 5:44 pm
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How do I make a EMA crossover system in android kite app? Is there any way I can set targets using this
mechanism while doing intraday trading? I wish to use 50 and 100 EMA crossover with 1min points?

Reply

Karthik Rangappa says:

April 5, 2018 at 11:04 am

Himanshu, you simply have to overlay the two averages on the price chart. Alternatively, check out
https://www.streak.tech/

Reply

172. Rachit Sethi says:

April 19, 2018 at 5:35 pm

Hi Karthik

Few doubts —–

1) Does intraday trades have slightest of an impact on the stock prices or they are purely governed by
delivery based trades ?
2) If I place an intraday order and convert it to delivery by the end of the session, will it highlight in the
overall volume for the day?
3) Was shorting banned during the 2008 global crisis ? If yes then was trading in F&O banned too ? (Little
out of the topic I Know)

Reply

Karthik Rangappa says:

April 20, 2018 at 11:39 am

1) It does have an impact and contributes significantly to the daily volatility

2) Yup
3) No, it was not.

Reply

173. ANIL KUMAR G A says:

April 29, 2018 at 1:00 am

On studies box which one should be taken for the moving cross over system?

Reply

Karthik Rangappa says:

April 29, 2018 at 7:30 pm

You need to select the moving averages.

Reply

174. Sarthak Laddha says:

April 29, 2018 at 7:58 am

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Sir,
What is the difference b/w linear weighted moving average and exponential moving average,, And i
cannot find linear weighted moving average on kite.

Reply

Karthik Rangappa says:

April 29, 2018 at 8:30 pm

Ah, I’m not sour linear weighted MA. I need to figure this out myself. EMA gives more weight to
the recent data points as opposed to the older ones. So in a 10 day EMA, data points of 7,8,9, and
10th day is given more significance as opposed to 1,2,3,5, and 6th day.

Reply

175. Heer says:

May 10, 2018 at 2:33 pm

Excellent module and response karthik. Does trend matter in crossover MA system. If sort is placed where
slower MA crossed faster MA , at that point trend needs to consider or not?

Reply

Karthik Rangappa says:

May 11, 2018 at 11:01 am

In fact, MA is an indicator of trend. So if there is a trend, the MA will let you know.

Reply

176. Pupun says:

May 15, 2018 at 9:51 am

To use the exponential moving average crossover between 9 day EMA with 21 day EMA ( upto few
trading session) and 25 day EMA with 50 day EMA (upto few weeks) what should be the duration of
candlesticks ? Should it be 15min or 30min or 1hr or 1 day ?

Reply

Karthik Rangappa says:

May 15, 2018 at 11:30 am

If you are using intraday, I’d suggest you use 15 or 30 mins. Else EOD for swing trades.

Reply

177. suresh says:

May 17, 2018 at 1:59 pm

Zerodha Team, Need your help. I went through the videos, varsity docs, but not confident yet on EMA
period setting. I would like to learn about EMA period usage in Kite. Using Kite Suppose I am viewing 15
minute candlestick chart and I have applied two EMA as
EMA with period value 15
EMA with period value 30
1. Can you please tell me what is exactly happening here?

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2. Does it mean I am comparing EMA (15min into 15) vs EMA (15min into 30)? i.e., 225 min EMA vs
450 min EMA?
3. How do I apply 15 x 30 minutes EMA on a 15 minute candle?
4. How do I apply 15 x 30 minutes EMA both on a 3 minute candle and on a 5 minute candle on the same
chart itself ?
5. How should we calculate the period in kite for days, hours, minute on different candles say
3min,5min,1hr candle. I would like to know how the calculation works.
6. Does the calculation differs for commodity, stock options trading since the trading hours is different for
mcx, nse.
7. On a single chart of say crude oil
a. 3min candle: Apply 3 day Exponential moving average and 15 minute Exponential moving average
b. 5min candle: Apply 20 day ema
How to calculate the period in Kite and also does kite support the same with both 3min and 5min candle ?
Thanks in Advance Zerodha Team.

Reply

Faisal Mohammed says:

May 18, 2018 at 3:24 pm

1. You are choosing an EMA for 15 candles of 15 mins vs 15 candles of 30 mins

2. Yes
3. You apply a 15(15 minute period= 225 mins) EMA and a 30(30 minute period= 450 mins) EMA,
that will perform the same task
4. You cannot apply EMAs for 2 candles of 2 different timeframes in a single chart. You can,
however, use the multiple charts option on Kite and use 2 different timeframes separately
5. Equities trade for 6 hours 15 minutes, Currencies trade for 8 hours, agri commodities for 7 hours
and non- Agri for 13 hours and 30 minutes. So you can calculate by dividing the timeframe with the
same
6. EMA is calculated on the last ‘x’ number of candles. Non- Agri commodities will have more 15
min candles in a day compared to equity.
7. 810 EMA vs 5 EMA? Can’t really understand what you meant there

Reply

178. Abhishek V says:

May 20, 2018 at 12:29 pm

Pl tell how to get the 5 x 10 minutes moving average crossover to identify intraday opportunities. Thnx.

Reply

Karthik Rangappa says:

May 21, 2018 at 2:33 pm

Please plot these averages on the price movement and look for crossovers. This should help you
with signals.

Reply

179. Jinal says:

June 6, 2018 at 1:44 pm

For short term trading we can use candlestick data of past 3-6 months with 50 x 100 day EMA?
But which candlestick chart to use as in EOD or 1 week charts for last 3-6 months?
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And for long term ie 100 x 200 day EMA we have to use 1 month candlestick charts and data period past
1-3 years?

Reply

Karthik Rangappa says:

June 7, 2018 at 11:03 am

I’d suggest EOD chart for this. For long term too, I’d suggest EOD charts.

Reply

180. Hemanth says:

June 13, 2018 at 7:49 pm

could u suggest me some recommended and free technical analysis software (reputed) for performing ema
and sma, bollinger analysis etc

Reply

Karthik Rangappa says:

June 14, 2018 at 12:44 pm

I cant think of any apart from Kite

Apart from Kite, I also like chartink.com

Reply

Chirag I Sharma says:

July 9, 2018 at 6:56 pm

Karthik, how about waiting for 5 minutes to confirm if the Short MA is staying above Long
MA or reversing and avoid stop loss as the last chart?

Reply

Karthik Rangappa says:

July 10, 2018 at 12:47 pm

5 mins can be a bit too short-term for establishing the trend, Chirag.

Reply

181. Raghavendra says:

June 18, 2018 at 11:55 am

In the last chart, after first arrow, if we entered long, we would have lost as the price went down in spite of
SMA being above LMA. What do we do in such cases??

Reply

Karthik Rangappa says:

June 19, 2018 at 11:13 am

Hence the need for a SL

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182. Viraj Patel says:

July 9, 2018 at 5:21 pm

What is the best time frame to trade positional, say on Friday or Monday in Bank NIfty?
How many days should I consider for both moving average?

Reply

Viraj Patel says:

July 9, 2018 at 5:25 pm

Also please suggest a good script that I can chose from Zerodha Expert Advisors page for my above
query. Thanks in advance

Reply

Karthik Rangappa says:

July 10, 2018 at 10:57 am

Try Infosys.

Reply

Karthik Rangappa says:

July 10, 2018 at 10:56 am

There is no best time as such, Viraj

For short term, look at 21/9 day average.

Reply

183. Chirag I Sharma says:

July 9, 2018 at 5:31 pm

While reading your options module regarding choosing the right strike price, the first step was to decide
my prediction of the underlying.

In case of EMA, we don’t predict but go with the flow and make profits as long as the condition of sell
does not hit.

How to select a strike price in case I want to trade options using EMA Crossover system Intraday?

Reply

Karthik Rangappa says:

July 10, 2018 at 10:59 am

If the signal triggers at a point where there is ample time to expiry (like 15-20 days), go for slightly
OTM options…else stick to ATM. Remember, the chances of going wrong with ATM options is
low. This is assuming your analysis is right in the first place.

Reply

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Chirag I Sharma says:

July 10, 2018 at 1:48 pm

W.r.t. Bank Nifty, I’d consider ample time to expiry as 3days or higher, right?

‘Cos on 9th Morning (Monday) 9AMA crossed 21AMA at around 26500 and if I had
purchased slight OTM 26700 if not 26800, then too would have made great money.

Reply

Karthik Rangappa says:

July 11, 2018 at 6:40 pm

Yes, that would make sesnse, as long as you are talking about Bank Nifty weekly
expiry.

Reply

Chirag I Sharma says:

July 11, 2018 at 7:56 pm

EMA is working like a charm for me. Today almost at the end of the day, I saw
on a 5 min 9*21EMA chart of Nifty Bank creating a long position. Immediately I
bought a nearest ITM strike (26800) at 84 and within 6 minutes the same chart of
Nifty Bank gave sell signal, made 10 points in no time.

Karthik Rangappa says:

July 11, 2018 at 8:24 pm

Good luck, Chirag! Hope you have more success in your way.

184. SHUBHANKAR SHEKHAR PATHARE says:

July 10, 2018 at 11:17 am

As said regarding taking trades based on moving averages, that we should take all the trades which are
signalled , but does the technical analysis check list applies for trading with 50 ema?

Reply

185. Archit says:

July 15, 2018 at 4:53 pm

In crossover system, should we wait for both averages to cross each other either buy or sell side? Because
sometimes till the averages crosses each other, the profit gets converted into losses.

Reply

Karthik Rangappa says:

July 16, 2018 at 10:49 am

Its better to wait for the actual crossover before initiating the trade, Archit.

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186. GN says:
July 16, 2018 at 12:03 am

Hi karthik,
In the kite chart, the moving average is Simple Moving Average or Exponential Moving Average?

Reply

Karthik Rangappa says:

July 16, 2018 at 11:06 am

You can choose either of the two. I’d prefer EMA.

Reply

187. Chirag I Sharma says:

July 16, 2018 at 11:50 am

You have written-

“Buy (fresh long) when the short term moving averages turns greater than the long term moving average.”

Here when the short term EMA turns lesser than long term, can I buy an ITM PE Call, since I know that
the price will fall as the smaller has crossed the longer downwards?

Reply

Karthik Rangappa says:

July 17, 2018 at 11:13 am

The thing with MA is that it can crisscross the signal line a couple of times before the trend
emerges…by which time the option may lose its value.

Reply

Chirag I Sharma says:

July 25, 2018 at 9:32 am

I am thinking of using EMA strategy only when the trend emerges in a 15min chart. Ofcourse
what I earn will be very less if the trend reverses immediately but as you’ve also said, I will
make big during rallies.

I am a risk averse trader and have found moving averages will suit me for Option Trading but
the only problem is selection of strike price at that moment and the expiry.

1. Should I buy the next weekly BNF (not coming) expiry to reap gains of MA? (But
premiums are too high)
2. Currently I take a Long position if available on Thursday or Friday for the coming
Thursday expiry and square off in a day or two when the trend reverses, should I not do 1. and
continue with 2.?

Reply

Karthik Rangappa says:

July 25, 2018 at 11:19 am
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Chirag, if the strike selection confuses you, I’d suggest you stick to ATM options.

1) Since you are buying, I’d suggest you stick to monthly options
2) Buyers need more time to expiry, so better to stick to monthly options.

Reply

Chirag I Sharma says:

July 25, 2018 at 6:49 pm

Ok then I’ll stick to Nifty 50 stocks and keep scanning them for buying
opportunities of either CE or PE with strict stop loss. Thanks! Will keep you
posted by August end.

Karthik Rangappa says:

July 26, 2018 at 2:31 pm

Good luck, Chirag!

188. Chanu says:

July 21, 2018 at 2:31 am

whats the line ” Market discount everything means”? pls explain

Reply

Karthik Rangappa says:

July 21, 2018 at 9:52 am

It means that price you see on the screen is reflective of all the known and unknow information
related to the stock.

Reply

189. CHIDAMBARAM V says:

August 6, 2018 at 12:13 am

Hi Sir,
1. What is an Offset in a moving Average? What is it used for ? What is the ideal value for this parameter?
( I could see this parameter in Kite).
2.What is displaced moving average?Is it used to forecast the trend?Kindly explain in details.

Reply

Karthik Rangappa says:

August 6, 2018 at 1:00 pm

Offset helps you move (displace) the moving average into the future. There is no ideal value but I
see people use 5 days as default offset value. Both are similar.

Reply

CHIDAMBARAM V says:
August 9, 2018 at 9:59 pm
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Hi Sir,
What is the use of offsetting a moving average.In what way it helps in technical Analysis?
How to use it ? Can u explain in detail !!

Reply

Karthik Rangappa says:

August 10, 2018 at 1:15 pm

I personally don’t find it useful either

Reply

190. Ram says:

August 9, 2018 at 1:00 pm

where can i get inrtaday charts like for 5mn?

bty. You are doing a very good job

Reply

Karthik Rangappa says:

August 9, 2018 at 1:28 pm

Ram, its available on Kite itself.

Reply

Ram says:
August 9, 2018 at 3:39 pm

Thannks

Reply

Ram says:
August 9, 2018 at 3:39 pm

Thanks

Reply

191. Dipak says:

August 22, 2018 at 11:25 am

Thanks Karthik for wonderful blog.

Could you please tell me,
1)Which EMA cross over do you prefer for swing trading,trade which remains approax. for 2 to 7 days ?

2) Which one would you use for swing trading,

SMA cross over , or EMA cross over ?
Thanks.

Reply

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Karthik Rangappa says:

August 22, 2018 at 12:41 pm

1) I’d suggest you look for 9 and 21 or 20 over 50 EMA

2) EMA

Reply

192. Dipak says:

August 22, 2018 at 11:32 am

Hello Karthik,

I am adding 3 rd question,

3) Which moving average would you prefer for swing trading,

SMA,EMA,or EMA ?
I know these depends on us.
I just needed your opinion.

Reply

Karthik Rangappa says:

August 22, 2018 at 12:41 pm

I prefer the EMA i.e Exponential Moving Average.

Reply

193. Dipak says:

August 22, 2018 at 11:35 am

Sorry, There is no option to edit.

3)SMA,EMA or WMA ?

Reply

194. nitin says:

August 22, 2018 at 4:35 pm

great sir thanks.

Reply

Karthik Rangappa says:

August 23, 2018 at 12:26 pm

Googe luck

Reply

195. Gowripriya says:

August 22, 2018 at 5:43 pm

Hi Karthik!
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Can I get to know whats the MACD – MA Convergence and Divergence and how it is beneficial? I
understand Crossover is one of the key point of MACD. Can you explain this and why MACD isn’t
included in this topic?

Reply

Karthik Rangappa says:

August 23, 2018 at 12:39 pm

MACD is explained here – https://zerodha.com/varsity/chapter/indicators-part-2/

Reply

196. Agnel says:

August 25, 2018 at 3:37 pm

I could not find out the EMA in the studies in Zerodha…. Can you please let me know if it goes by other
names

Reply

Karthik Rangappa says:

August 26, 2018 at 10:09 am

Open the chart in Kite, under the studies dropdown, look for the EMA option.

Reply

197. SUNIL says:

September 2, 2018 at 5:04 pm

Hi Karthik
It seems you love moving averages,me too it rarely fails i will regret why in the early times i did not
realized this.These days kite is slightly not giving precise information in its candle bars,and not properly
works in first 2 minuts .Anyways it works fine.
Zerodha is the only brokerage firm giving such nice free classes on technical analysis Big thanks for it.
I would like to know if i combine mov.avg with ADX and DI indicator the momentum indicator
sunil k minz

Reply

Karthik Rangappa says:

September 3, 2018 at 9:32 am

Yes, Sunil, I like it for its simplicity

You can combine it, with ADX or DI to gain insights into the strength of momentum.

Reply

198. Anna says:

September 12, 2018 at 10:19 am

Reg. EMA crossover, it looks nice but one hitch. STOPLOSS. You haven’t spoken anything regarding it.
If it is tight, probably one would get stopped out on a potentially profitable trade. If it is generous,

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risk/reward ration is not attractive. What is your view on “what should be the stop loss”?

Reply

Karthik Rangappa says:

September 12, 2018 at 2:58 pm

EMA (or even SMA), is not the best indicator to identify SL, simply because it gets choppy when
the stock is moving sideways . You should opt for CS patterns instead.

Reply

199. Bhavin says:

September 12, 2018 at 10:25 am

Hi, When you said do 15 Minutes X 30 Minutes EMA for intraday. You meant period of 15 X 30 and 1
Minute candlesticks?

Reply

Karthik Rangappa says:

September 12, 2018 at 3:03 pm

I’d suggest you use 5 or 10 mins chart instead of 1-minute candlesticks.

Reply

Anuragh says:
December 4, 2018 at 8:50 pm

Hello Karthik,

From INTRADAY perspective for Plotting EMA on 5 min chart I have queries below
1.what are the periods needs to be selected for both the charts so that I could see a crossover
happening.
2. What options needs to be selected for “Field and Type and Offset”
3. Should EMA be used only if there is any trend observed(Up trend or Down Trend) like
today as of 04/12/2018 SUNPHARMA was in downtrend . Please explain this elaborately.
4. What is the difference between Trend and Momentum . Aren’t both the same
Thank you In Advance.

Reply

Karthik Rangappa says:

December 5, 2018 at 6:32 am

1) You can start with 9 and 21 EMA on the 5 mins chart, check if this works for you
2) The field is the price. You can ignore the offset
3) EMA is a lagging indicator, it is used to identify the trend after it has gained some
momentum.
4) Yes, both are used interchangeably.

Reply

Anuragh says:

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December 5, 2018 at 3:57 pm

Thank-you for the responses above .

I tried the way you had mentioned but i couldn’t see any crossovers happening
either in 5 min or 3 min period . Multiple Crossovers happen only in 1 Min time
frame.
Also how do we know if any Trend has already formed without these indicators
letting us know . Do we have to look out for any other Indicator in conjunction
with this which shows a clear indication that a trend has already been formed and
which could allow us to take a stance accordingly.

Karthik Rangappa says:

December 6, 2018 at 11:40 am

Anuragh, I’d suggest you change the settings to see which one works for you.
You can always check the rate of at which the returns vary i.e momentum to
figure out if a trend is in place or not.

200. Dhineshbabuj says:

September 22, 2018 at 8:54 am

Dear sir,
I just started learning TA, INDICATORs.in our Zerodha Kite, I didn’t find MA CROSS OVER indicator
in the studies menu. Where it’s available and at what name?

Thanks sir

Reply

Karthik Rangappa says:

September 22, 2018 at 1:19 pm

You can observe the crossover when you load 2 or more moving averages on the chart.

Reply

Dhinesh Babu says:

September 22, 2018 at 8:01 pm

Thanks sir… clear now…

Reply

Karthik Rangappa says:

September 23, 2018 at 9:53 am

Good luck, Dhinesh.

Reply

201. Gaurav says:

October 19, 2018 at 3:14 pm

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Sir,
Is there any Module for Mutual Funds? I mean how to choose best performing funds?

Reply

Karthik Rangappa says:

October 20, 2018 at 5:22 am

Not yet, Gaurav. We will include one.

Reply

202. Narayan says:

October 22, 2018 at 9:38 pm

How to find Hull Moving avarage in Zerodha?

Reply

Karthik Rangappa says:

October 23, 2018 at 12:13 pm

Yes, in Kite, load the chart and select Moving average. Now under the dropdown option, select Hull.

Reply

203. Himanshu says:

October 23, 2018 at 1:16 am

Sir, can you please tell me more about 15*30mins and 5*10mins for intraday I’m confused what is exactly
15 or 5. And also can you tell me the best crossovers to consider while intraday trading?

Reply

Karthik Rangappa says:

October 23, 2018 at 12:22 pm

It is a 15 min moving average over a 30-minute average. There is nothing like the best crossover for
intraday. You will have to figure out what works for you by trial and error.

Reply

Siva kumar reddy says:

November 2, 2018 at 11:35 am

Hi karthi,
Can you let me know how we can keep moving average of 15min and 30min in KITE? I can
see only days i.e. from 1,2, 3, etc.,

Reply

Karthik Rangappa says:

November 3, 2018 at 10:52 am

All you need to do is change the frequency to the desired time frame, like 15 or 30
mins. When you load the chart, the first dropdown starting from the left gives you these
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options.

Reply

204. Mehul Shah says:

October 28, 2018 at 12:57 am

Can u help me with displaced moving averages and how to put in kites chart

Reply

205. Siva kumar reddy says:

November 2, 2018 at 11:36 am

Hi karthik,
can you suggest best cross over points for BANK NIFTY OPTIONS TRADING?

Reply

Karthik Rangappa says:

November 3, 2018 at 10:52 am

Im not sure about this, Siva.

Reply

206. Tushar says:

November 9, 2018 at 7:40 pm

Hi Karthik,
Greetings! How to do the set up of MAs in Zerodha? I mean how do i select number of days for shorter
and longer MAs for the particular stock ? will the system automatically trigger the ‘Buy’ and ‘Sell’ signals
once appropriate conditions are met? Many thanks

Reply

Karthik Rangappa says:

November 10, 2018 at 6:39 pm

The settings for long/short MA has to come from your own experimentation. I generally prefer 9
and 21 day EMA. If you are looking for automatic triggers, I’d suggest you look at Streak (available
for free this month) – https://www.streak.tech/

Reply

207. Manish says:

November 10, 2018 at 11:50 am

Hi Karthik,
What time frame we should keep while plotting the graph for the 9X21 EMA / 25×50 EMA for doing
positional trading (time frame of 10 to 15 days).

Thanks,
Manish

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Karthik Rangappa says:

November 10, 2018 at 6:56 pm

I personally prefer the end of day charts for this, Manish.

Reply

manish says:
November 12, 2018 at 11:11 pm

Thanks Karthik for your reply

End of chart means i need to keep the time frame of 1 D in the chart.

Thanks
Manish

Reply

Karthik Rangappa says:

November 13, 2018 at 11:41 am

Yes, Sir.

Reply

manish says:
November 13, 2018 at 11:42 am

Thanks sir.

208. Gourav panda says:

November 13, 2018 at 5:39 pm

Hi Karthik,
Moving Average crossovers are mostly lagging indicators. They often cause stop loss to be hit.
What else do you think will give better gauge of the market before moving average.

Reply

Karthik Rangappa says:

November 14, 2018 at 11:21 am

Gourav, I personally find MA to be the most veratile system/indicator. The lag is emphasised when
the stock is trending, but then when there is momentum in play, it lets you ride and book healthy
profits.

Reply

209. Anitesh Singh says:

November 30, 2018 at 1:50 am

Hi Kartik.. I try to follow simple strategy.. Since I am new to Intraday trading, so I have set a target of
profit per day around Rs.2500/- per day and maximum loss of Rs.3000/- per trade and Rs.6000/- max loss
for a day. This means I stop trading for the day if I gain around Rs.2500/- or lose around Rs.6000/-.
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I trade Equity Futures and only in 2-3 stocks because I have been tracking those stocks for a long time and
now I am familiar with them.
Its been a week and I have gained around Rs.16,000/- on a capital of 1 Lakh. Its too early to comment if I
can make this consistently or not. I would like to have your opinion….
Do you think my money management is fine considering the fact that I am a newbie?
Also it would be great if you can suggest what should I do to move ahead from here?

Reply

Karthik Rangappa says:

November 30, 2018 at 11:50 am

The risk to reward is not proportionate…in effect, you are risking 6K for a gain of 2.5K. Lets
assume you are have been lucky so far…what if you hit 10 straight loss-making trades in a row?

Reply

Anitesh Singh says:

December 2, 2018 at 12:39 pm

Yes. I understand that now.. Also I think it’s just my luck till now. I don’t have a robust
strategy which is backtested.
Can you suggest how can a beginner develop his own strategy..? And will you suggest any
book for that..?
Its just that there are too many strategies and trying and testing each one might not be
possible.

Reply

Karthik Rangappa says:

December 3, 2018 at 6:59 am

I understand, Anitesh. Why don’t you start with the time testest ones? Like the MA
crossover or the MACD+Candlestick pattern? You can also check https://streak.tech/
for backtesting your strategies.

Reply

210. Srinathjayanna says:

December 4, 2018 at 9:11 pm

Sir 9*21 for ema which is period and offset is it 9period 21offset or vice-versa

Reply

Karthik Rangappa says:

December 5, 2018 at 6:37 am

You can use this at any time period. I personally prefer the EOD time period, even for intraday
trading.

Reply

211. Srinathjayanna says:

December 5, 2018 at 8:32 pm
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Sir to take nism certification varsity modules syllabus is enough for it.

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Karthik Rangappa says:

December 6, 2018 at 11:46 am

I think this should help.

Reply

212. Yash khatri says:

December 10, 2018 at 3:24 am

Hey karthik,
I am new here and it was almost a brain storming session for me to read continiously till this chapter from
the first chapter of this module.. but it was totally worth it. I tried to find those single stick patterns and
analyse them they were of great help. I Also observed multiple candlestick patterns in various stocks and
then they were moving just as you said! And the way you explained these was totally simple as well as
descriptive. So thankyou for that.. clearly you have written that with all your heart so it was sooo hard to
stop reading it further..
Actually i had a query in moving averages as you said one should long when the faster moving average
cuts from below the slower moving average.. so can i do the opposite as when Slower moving average
cuts faster moving average from below can i enter into a short position? I tried to observe it and in infosys
i observed this two times in current month between 1 dec to 5 dec that if i had entered in a short position i
would have incurred a loss.. eventhough the loss is quite less in both cases i.e. almost a rupee difference
per share.. to be noted that i have used 9*21 chart in 15 mins timeframe… so i wanted to know your
opinion about taking a short position in the exact opposite situation when you suggested to go long.. also
please tell me what is EOD time period.. as i cant recall it..
Again Thank a ton for your efforts!!

Reply

Yash khatri says:

December 10, 2018 at 3:50 am

Also if i entered in a long position and the faster moving average is way too high than the slower
moving average hence i am in reasonably higher unrealised profits.. and then i saw some dojis or
spinning tops or a hanging man or any other bearish pattern or even i see selling from the smart
money and we know we should trade in the flow where smart money is moving.. but on the other
side the slower moving average has not given any signal to settle the trade yet, should i wait for the
moving averages to cut and provide me a signal to sell..or settle it at the time i see bearish patterns
as if i wait for the faster moving average to come closer or even to cut slower moving average and
when it cuts i will realise relatively lower profits than what i could have booked if i had sold at the
time of getting a comfirmation from those bearish patterns. Also what will be the stoploss trigger in
cross systems.. i think that should be the point where we entered in trade but that can be hit multiple
times in some situations where market is not in complete upwsrd or downward trend. Please Correct
me if i am wrong here.

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Karthik Rangappa says:

December 10, 2018 at 1:39 pm

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In a sense true, Yash. In such a situation you can even trail your profits to lock in your profits
and ride the wave.

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Karthik Rangappa says:

December 10, 2018 at 1:19 pm

Thanks for the kind words, Yash. Such encouragement keeps us motivated

Yes, you can short the stock by all means. However, I hope you are aware that you cannot short and
hold the position in the equity market (Spot market). You will have to do this in either the futures
market or the options (buy puts).

Reply

Yash khatri says:

December 11, 2018 at 12:57 am

Yes i am aware of the same. Actually i was thinking about going short in intraday Trades.
I am going to start getting in-depth knowledge of f&o soon with CA final SFM so that i can
get exam oriented as well as practical knowledge side by side. Will surely apply these
techniques in that segment. Also i tried to apply supertrend 7,3 along with EMA crossovers
and i found that supertrend was avoiding the trades that EMA crossovers would have
suggested in sideways market. So in such a case i want to know your opinion on which one is
better.. supertrend or EMA crossovers.. i thought why choosing one when you can apply both
simultaneously.. will there be any limitations that i am not aware of if using these two
simultaneously. Also i am having a track on volumes before entering a trade.

Reply

Karthik Rangappa says:

December 11, 2018 at 12:07 pm

Supertrend uses MAs as a core concept. Traders sware by supertrend, but I’d prefer
good old EMA for its simplicity.

Reply

213. Chandan Chandramani says:

December 18, 2018 at 11:54 pm

Sir,
If I choose a 3 minute candle and select 2 EMAs first of period 5 and second of period 10 then will it be a
15 X 30 crossover pattern?

Please respond. Thank you.

Reply

Karthik Rangappa says:

December 19, 2018 at 11:12 am

It will be 5×10 EMA crossover on a 3-minute candle.

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214. Bhoopal says:

December 24, 2018 at 3:54 pm

Dear Karthik Ji

I want to initiate trades based on crossover system that too in Intraday time frame only,so when I should I
initiate trade?
either after particular time frame candle close is above/below crossover or just immediately after
crossover is done?

Can I use 5x 10EMA crossover on 15 mnts time frame or only I should use 9×21 EMA

I read in one of your answers that CS patter should be opt for SL for crossover system ? what is CS
pattern?

I will be thankful for your prompt reply.

Reply

Karthik Rangappa says:

December 26, 2018 at 11:05 am

If you are looking at intraday, then you can initiate this based on a simple 9 and 21 day EMA
crossover. You can initiate this as soon as the crossover is done.

Reply

215. Siddhant Kapadia says:

December 26, 2018 at 9:33 pm

Dear Sir,

How do I use the 15 x 30 minutes crossover on the kite software or app? How should I get the days part
into minutes?

Regards,
Sid

Reply

Siddhant Kapadia says:

December 26, 2018 at 9:40 pm

Also can I use this for understanding stock movement for option trading? Which one should I use?
15×20 MINS? OR SHORTER?

Reply

Karthik Rangappa says:

December 27, 2018 at 11:56 am

Yes. Higher the better.

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Karthik Rangappa says:

December 27, 2018 at 11:56 am

Check the 1st drop down on the chart, you can use this to modify the frequency.

Reply

216. Amit Bhimani says:

January 5, 2019 at 5:09 pm

Dear Sir,

Would plz suggest me best strategy for sure shot 30 points in Mcx Gold Intraday??????

Reply

Karthik Rangappa says:

January 6, 2019 at 11:54 am

I’d be God, if I could do that, Amit

Reply

Amit Bhimani says:

January 7, 2019 at 10:47 am

According to u, what is best strategy to trade gold intraday??? Which EMA corssover
according to u is best for Gold intraday????

Reply

Karthik Rangappa says:

January 7, 2019 at 12:16 pm

Well, trend following via EMAs certainly help, but may not be the best, Amit.

Reply

217. Shrey Jain says:

January 7, 2019 at 3:44 pm

Hi, I tried plotting the charts after reading the content here, but i don’t seem to understand what “offset”
stands for in Zerodha?

Reply

Karthik Rangappa says:

January 8, 2019 at 11:23 am

Ah, you can ignore that bit, Shrey.

Reply

218. Srinathjayanna says:

January 9, 2019 at 8:55 pm
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Sir since moving averages are lagging indicators instead of going with full quantity can we go with half
quantity because before crossover there will be already trend will be established so instead of going full
we can go and trade with half quantity right.

Reply

Karthik Rangappa says:

January 10, 2019 at 9:05 am

Yes, you certainly can split your cash and manage the trade better.

Reply

219. Srinathjayanna says:

January 11, 2019 at 1:47 am

CONGRATULATIONS karthik sir for becoming No1 brokerage in India congrats for the whole
zerodha team and nithin.

Reply

Karthik Rangappa says:

January 11, 2019 at 11:37 am

Thank you so much I think the journey has just started!

Reply

220. Srinathjayanna says:

January 19, 2019 at 12:05 pm

Sir what is market profile and order flow analysis and how important is it I don’t find any material here on
these topics.

Reply

Karthik Rangappa says:

January 20, 2019 at 10:17 am

I’ve not written about in Varsity. Maybe I will sometime.

Reply

221. Ron Kalra says:

February 4, 2019 at 8:25 pm

Dear Karthik,
First all let me congratulate you for becoming India’s number 1 broker, absolutely amazing job.
I can tell you that you guys are the best and nothing can Zerodha’s trading platform.

All said, there is a small issue ( I think, it’s small and should be given attention to ). In your Pi trading
platform you offer Expert Advisory code for Ichimoku Cloud but the indicator itself is not available in the
Pi platform. After many reminders and emails to Zerodha I still get the same reply from you guys to use
Kite for Ichimoku.

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To be honest when you are planning your trade using a particular strategies/indicator it’s not very
convenient to change platform. You really want to see all the details in one screen so you can make your
trading decision smartly.

Also, I guess Ichimoku is consider a very basic Indicator which is available with almost every trading
platform in the world.
I just hope it not too much of work and by paying little attention to small details you will make many
people happy. I have seen in your Trading Q&A and observed that there are many request for the same.

So, I’ll really appreciate if you can take this matter seriously and try to help us by providing us Ichimoku
cloud in Pi software. At least I can say for myself that I’ll perform better if it is available for us. Once
again please please don’t ignore my request and hopefully you will help me out with this.

Thank you very much indeed for all you do for us. Really appreciated all the time and energy you put in
for us. Please please please don’t disappoint me on this one.

Regards
Ron

Reply

Karthik Rangappa says:

February 5, 2019 at 11:21 am

Good to hear from you, Ron. I will pass on this info to the team.

Reply

222. Ajay Virkhade says:

March 5, 2019 at 11:11 pm

Hi,
Crossover EMA is explained brilliantly and in easy way. After a long research on crossover EMA, my
doubts are clarified in this article. Before reading this study, i was very confused with respect to which
crossover EMA to be used for short term trading and for long term trading. It will be very helpful for me if
you clarified that which time frame candle should be used for intraday trading.
Thanks.

Reply

Karthik Rangappa says:

March 6, 2019 at 11:40 am

Ajay, for intraday, I personally find 9 day EMA over 21 day EMA quite helpful. I’d suggest you
check this and improvise on it.

Reply

Ajay Virkhade says:

March 6, 2019 at 8:35 pm

Thanks for reply. But which time frame candle should be used for intraday.

Reply

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Karthik Rangappa says:

March 7, 2019 at 11:56 am

Like I’ve mentioned earlier, you can start with 9×21 and calibrate as you progress.

Reply

govind toshniwal says:

April 26, 2019 at 1:01 pm

on 5 minutes charts??

Reply

Karthik Rangappa says:

April 26, 2019 at 1:33 pm

Maybe 10 minutes chart.

Reply

223. Sunil Awasthi says:

March 7, 2019 at 9:51 pm

Dear Karthik
EMA crossovers in addition to S/R levels you talked about is mixing of two independent strategies. Would
it not be better if we take every EMA crossover trade without considering S/R levels so that one big
trending trade will overshadow the marginal profits or few minimum losses..because after all we want to
ride the trend and it may easily surpass historical supports and resistances in that case leaving S/R levels
with no utility in bigger picture scenario.

Reply

Karthik Rangappa says:

March 8, 2019 at 11:45 am

Sunil, of course it does. In fact, if you decide to follow only EMA, then you should take all signals
hoping for that 1 trade which can compensate for all the tiny losses when the mkts traded sideways.
No point complicating this by looking at S&R.

My suggestion to look at S&R and EMA was from a very short term perspective.

Reply

Sunil Awasthi says:

March 8, 2019 at 3:09 pm

Thank you Karthik for replying in the most satisfactory manner.

From SHORT TERM perspective, I think it would be right to exit the trade once the target as
per S/R level is hit; instead of waiting for one wild swing . Correct me if I am wrong.
Regards.

Reply

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Karthik Rangappa says:

March 10, 2019 at 7:59 am

Of course, you are free to add as many calibration techniques as possible to enhance the
profitability of your system!

Reply

224. Prey says:

April 16, 2019 at 12:42 am

Hello,
Can you please tell me what time frames and crossover EMA’s are ideal for intraday and swing trading. I
am confused a bit.
Thanks in advance.

Reply

Karthik Rangappa says:

April 17, 2019 at 12:13 pm

I personally prefer EOD time frame. Crossover EMA’s…hmm there is no such thing as ideal
YOu will have to experiment and figure out what works for you.

Reply

225. Akshay says:

April 21, 2019 at 3:19 pm

Sir I think 9*21 moving average is better than 9*18 MA crossover is it true?

Reply

Karthik Rangappa says:

April 22, 2019 at 11:56 pm

Not really, what works for you may not work for others. No good or bad MA.

Reply

226. Akshay says:

April 23, 2019 at 2:11 am

Today I buy stock of JSW steel and on basis of Bollinger band macd and some 1-2 other indicators.Today
is the bearish market and my stoploss is hit.How can I find my mistake in this trade and I took risk to
reward as 1:2.

Reply

Karthik Rangappa says:

April 23, 2019 at 10:38 am

You need to access the overall set up, Akshay. Did it match all the checklist items?

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227. govind toshniwal says:

April 26, 2019 at 12:58 pm

we use 9 day * 21 day ema crossover for short term trading and for intraday trading in 5 minute charts
how much candle do u suggest for better results. whether 5*10 minute candle is better or 15*30 minute is
better for intraday trading

Reply

Karthik Rangappa says:

April 26, 2019 at 1:32 pm

5*10 is ok, make sure you look at, at least the last 5 days charts for this.

Reply

228. Maria says:

May 16, 2019 at 3:43 pm

How do we set targets and stoploss here ?

Reply

Karthik Rangappa says:

May 17, 2019 at 11:26 am

How as in the technicality of placing the order or the identification of these levels?

Reply

maria says:
May 25, 2019 at 11:47 pm

identification of levels .. is it by identifying support and resistance ?

Reply

229. Himanshu Garg says:

May 24, 2019 at 1:54 am

In the above chapter, it says that you exit the position when the shorter average(eg. 50 day) turns less than
the longer one(eg. 100 day) . How do we judge the “turn”?

Reply

230. Himanshu Garg says:

May 24, 2019 at 2:00 am

Also, if we have to wait for the short average to cross with the longer average again but in the opposite
manner of a golden cross (death cross) to exit the position, won’t that lead to missing of the highest price
for exit? I backtested it and many times waiting for the death cross leads to a loss of more than 20 percent.
Even in the example chart in the module. The averages don’t actually cross when the suggested exit point
comes (BPCL).

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Karthik Rangappa says:

May 24, 2019 at 11:14 am

Yes, it will. But remember, the MA system is not about getting the timing right..it is about catching
a part of a larger trend.

Reply

231. sunil says:

May 24, 2019 at 7:17 pm

what are field,type,offset and underlay in ploting moving average across a chart is there any tutorial to
know in detail about this.
I want to know about 15*30 and 5*10 cross overs

Reply

Karthik Rangappa says:

May 25, 2019 at 9:37 am

I’d suggest you ignore the offset bit, it does not really add much value. The rest is explained in the
chapter.

Reply

232. Parita Mehta says:

May 28, 2019 at 5:14 pm

Can you please explain exactly how to place these moving averages on a chart, say for example 15*30
mins for intraday with all the necessary time frames? I also dont know how to select the number of
candles for a particular chart.

Reply

Karthik Rangappa says:

May 29, 2019 at 11:25 am

If you are interested in intraday trading, I’d suggest you look for at least 10-15mins chart. Yes, you
can use 15*30 for intraday with 3-5 days of the intraday chart.

Reply

233. M.Bhoopal says:

June 15, 2019 at 11:50 am

Dear Karthik Ji

Could pls clarify the below content which was mentioned in your Zerodha varsity in MA chapter ?

“Needless to say, the MA crossover system can also be applied for intraday trading. For instance one
could use the 15 x 30 minutes crossover to identify intraday opportunities. A more aggressive trader could
use 5 x 10 minute crossover”

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As per the above if i want to trade on 15 x 30 mnts crossover then which MA should I use i.e. 9 x 21 day
on 15 / 30 mnts
or 25 / 50 day for Intraday on 15 /30 mnts or 5 /10 mnts ?

Reply

Karthik Rangappa says:

June 15, 2019 at 12:31 pm

You need to load 15-minute time frame and overlay on it 9 and 21 EMAs. If this does not work,
then maybe you should try changing the values. The idea is to experiment and calibrate these to
match your risk-reward temperament.

Reply

234. M.Bhoopal says:

June 28, 2019 at 12:30 pm

Dear Karthik ji

Which crossover either 9 x 21 EMA or 5×10 EMA on 1 hr time frame is best crossover for good profits ?

Reply

Karthik Rangappa says:

June 29, 2019 at 3:46 pm

I wish there was a simple and direct answer for that

You really have to experiment and figure out which one works well for you

Reply

235. PANKAJ says:

July 2, 2019 at 10:30 am

What do you mean by EMA is 9 over 21 minute candles

I want to know 9 is minute or day
What do means by cross over exactly

Reply

Karthik Rangappa says:

July 2, 2019 at 11:14 am

Its explained in the chapter/comments itself, Pankaj. Can you please read through it again? Thanks.

Reply

236. Elamparithi says:

July 12, 2019 at 9:46 am

Hi Karthik ,

I had gone through complete TA and Options Theory for Professional Trading ,among that ,the concept
which have more confidence on Candlestick pattern(15 min time frame ) and EMA (5*10) that trading is

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possible with these concept .Moreover i am trading for past 6 month based on EMA crossover .

The advice which i required from Pro trade like you ,whether i can take this trading as a carrier for rest of
the life in discipline manner . Right now i am trading in Bank nifty Option

1.If 5 EMA greater or crossover 10 EMA will take CE as position ,This CE position will be squared off
when 5 EMA lesser or crossover 10 EMA
2.If 5 EMA lesser or crossover 10 EMA will take PE as position ,This PE position will be squared off
when 5 EMA greater or crossover 10 EMA
Is any thing want to correct me pls

Reply

Karthik Rangappa says:

July 12, 2019 at 11:57 am

The short answer is no. Trading as a full-time career is too risky and unstainable. Only a few
amongst 1000s survive. Do this as a secondary job, but do something which will give you steady
cash flow every month.

Reply

237. YOGASATHIYAN SNS says:

July 26, 2019 at 11:02 pm

Please let me know if any pre defined function exist for hull moving average. I have find out SMA, EMA
and TMA for moving average screener. But I am unable to code for hull moving average function in
zerodha PI…..pls help me

Reply

Karthik Rangappa says:

July 27, 2019 at 5:00 pm

I’m not too sure, let me check this up.

Reply

238. Khemji prajapati says:

August 3, 2019 at 10:06 am

How can I load 21 sma band (high to low) in zerodha kite. Which option I should go?

Reply

Karthik Rangappa says:

August 3, 2019 at 11:54 am

You can load the SMA, need to check on the band.

Reply

239. Sujin says:

August 6, 2019 at 12:37 pm

How can I setup 15*30 min EMA in zerodha.

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Karthik Rangappa says:

August 7, 2019 at 11:23 am

You can load both the EMAs on the price data, Sujin.

Reply

240. Srinivasan M says:

August 7, 2019 at 5:30 am

My doubt is how to calculate Length in MA. Can anyone clear it out for me?

Reply

Karthik Rangappa says:

August 7, 2019 at 11:44 am

The length (look back period) I suppose…this depends on your trading style. If you are doing
intraday, then you should be looking at say the 10-minute average. If you are doing an end of the
day, then maybe a 50-day average will help.

Reply

241. Sujin says:

August 8, 2019 at 10:16 am

Can you please explain about this?

Reply

Karthik Rangappa says:

August 8, 2019 at 11:33 am

About?

Reply

242. Sujin says:

August 9, 2019 at 11:58 am

About how can I setup 15*30 min EMA in zerodha?

Reply

Karthik Rangappa says:

August 9, 2019 at 6:07 pm

Sujin, do check this thread – https://tradingqna.com/t/how-do-i-add-a-moving-average-overlay-on-

volume-in-kite/13565

Reply

243. SRINIVAS R says:

August 12, 2019 at 3:29 pm
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you said that In case to avoid the sideways market the “MA Cross over should be high “.
Instead can we use ADX Indicator to avoid sideways market

Reply

Karthik Rangappa says:

August 13, 2019 at 11:09 am

Yes, ADX too is a momentum indicator, you can use this to identify trending and sideways markets.

Reply

244. Vikas says:

September 1, 2019 at 9:52 pm

Sir in 10 min EMA & 10 Days EMA i understood that in 10 Days EMA lookback period is of 10 days but
in 10 min EMA the lookback period is of 10 minute candle but for how much time/days?

Reply

Karthik Rangappa says:

September 2, 2019 at 8:36 am

Vikas, just like the 10 day EMA, the 10 mins EMA looks at the last days candle to evaluate the 10
min EMA.

Reply

245. Satya says:

September 9, 2019 at 4:16 pm

Hi Karthik,

If we want to take the trading decision for intraday on 9 * 21 on 5 minutes chart, Do we need to wait till it
generates 21 five minutes candles (i.e 5*21 =105 minutes)? How to take trading decision in the first one
hour based on 9*21 – 5 minutes candles?

Thanks
Satya.

Reply

Karthik Rangappa says:

September 10, 2019 at 10:33 am

Hmm, yes. But then you can always look at the intraday charts, which are continuous.

Reply

246. Kiran Narayanan says:

September 9, 2019 at 5:21 pm

Dear Sir,
Thank you so much again for the wonderful modules. Its very simple but very powerful.
I have two doubts here
1. can we do shorting when the short term moving average turns lesser than the longer term moving
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average also?
2. Can we initiate a trade only with EMA?
Please clarify…

Reply

Karthik Rangappa says:

September 10, 2019 at 10:49 am

1) Yes, you can

2) Yes, you certainly can.

Reply

247. Satya says:

September 10, 2019 at 11:17 am

Hi Karthik,

Since the average is considered based the previous values also, I have noticed significant difference
between the short term moving average line crossing point and spot price.
If we want to go long based on 9*21 five minutes candle chart for intraday trading, when the short term
moving average line crosses the long term moving average line, we are supposed to initiate the trade, but
the spot price is far higher than the crossing point. Still do we need to initiate the long trade though it is
higher than the crossing line.

Thanks & Regards

Satya.

Reply

Karthik Rangappa says:

September 11, 2019 at 11:13 am

Yes, because the idea here is to trade the moving average and not the spot price directly.

Reply

248. Satya says:

September 10, 2019 at 11:19 am

Hi Karthik,

How to check the intraday charts, if there is any link to go through, please share.

Thanks
Satya.

Reply

Karthik Rangappa says:

September 11, 2019 at 11:13 am

Satya, just change teh frequency to either 10 of 15 mins, and thats the intraday chart.

Reply
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249. Satya says:

September 11, 2019 at 8:05 pm

Hi Karthik,

As moving average cross over system gives the signal once the trend is established, we are already
entering into the trade at higher level than moving average crossing point ( we miss some initial part of
bullish trend), again during sell time, once the bearish trend established we will wait for the crossing point
and again we miss some points from high ( we exit after some days of bearish trend).
Basically we are missing some trend at entry and exit level. Is there any better system to overcome this?
Am I missing some thing here?

Thanks
Satya.

Reply

Karthik Rangappa says:

September 12, 2019 at 11:26 am

Hmm, I understand. However, it is not possible to capture the trend in entirety

Anyway, to overcome this, you can overlay other momentum indicators such as MACD, but that
will just start complicating the system.

Reply

250. ALEKH says:

October 15, 2019 at 1:00 pm

Hello,
first of all thanks for this wonderful explanation. I wanted to ask that what should be candlestick pattern
for Ema cross of (25,50).Like i should keep the candle for 1 day or 1 week. Because i dont have time for
intraday buying and selling.I just want to buy on monday a good number of stocks and sell it on maybe
friday or next monday. Like a MID TERM POSITIONAL CALL.

Reply

Karthik Rangappa says:

October 16, 2019 at 11:41 am

I’d suggest you look at EOD candle for medium term or swing positions.

Reply

251. krutuparna says:

October 15, 2019 at 2:39 pm

there are arithmatical mistakes in the pdf version of this module,also some charts and topics are not there.

Reply

Karthik Rangappa says:

October 16, 2019 at 11:47 am

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Will review it. Thanks for pointing.

Reply

252. ALEKH says:

October 15, 2019 at 5:30 pm

but for 9 ema and 21 ema putting 30 min candle is giving me a perfect result . I want to ask what should
be my candle patten and ema cross format for a positional trading like keeping a stock for a week and then
selling it

Reply

Karthik Rangappa says:

October 16, 2019 at 11:57 am

Yes, its best if you can hold the position for a few sessions.

Reply

253. Arunkumar says:

October 30, 2019 at 10:49 am

Hi,

What is the best time period for 9*21 EMA for Nifty Intraday. (1,3,5mins)?

Reply

Karthik Rangappa says:

October 30, 2019 at 11:51 am

To begin with, you may want to check the 10 min chart for this.

Reply

254. Satish says:

November 5, 2019 at 3:00 pm

Dear Karthik,

When I use the moving average line of say, 9 and 21 days, your advice has been to keep the trade till the
21 day line crosses the 9 day line. With this strategy, when I sell the stock, it may not be at the peak, and
some profits maybe lost. Is there any reason it is suggested to keep the trade till the condition is satisfied?

Reply

Karthik Rangappa says:

November 6, 2019 at 11:13 am

The thing is that it is tough to capture the entire rally since it involves timing the market. Given this,
even if you manage to capture 50% of the rally, then its job well done. This is what the system helps
you do.

Reply

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255. Shyam Sundar says:

November 7, 2019 at 8:53 am

And one more thing when the cross-over happens the market is already up or down by a very huge margin.
How to make sure that we are not entering when its a peak of that rally.

Reply

Karthik Rangappa says:

November 7, 2019 at 11:39 am

You cannot be sure about that, you will have to take the trades as suggested by the system.

Reply

256. RAJESH says:

November 13, 2019 at 10:40 am

hello karthik

i am very confused while apply ma crossover on a crude oil or silver bcz if i am using longer EMA than it
does not seems like profitable and if i am using shorter EMA than there is so much trading signals in a
single day so here again a major problem bcz in MA CROSSOVER we are not selecting the trade bt we
must trade so please help me in this condition.

Reply

Karthik Rangappa says:

November 13, 2019 at 1:21 pm

Rajesh, the thing is that you cannot force fit a trade

I’d suggest you continue to use long term average lines and wait for the right opportunity to get into
a trade.

Reply

257. tangudu neelakantha says:

December 14, 2019 at 3:49 am

For intraday as you have mentioned 15 x 30 minutes exponential moving averages. By this, I have to set
the period as 15 in one moving average and 30 in another moving average. so what should be the candles
sticks for it 15 minutes or 10 minutes or any candlesticks based on our needs?

Reply

Karthik Rangappa says:

December 14, 2019 at 2:02 pm

15 minutes is good enough, I’d suggest you start with this.

Reply

258. vikas says:

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December 16, 2019 at 12:56 am

Mr Karthik
totally a beiginner in the world of trade.
beginning is reading ur tuorials and opening of acct on zerodha.
can u tell pl if there is any tutorial onusing the zerodha platform and how to open the various MAs, vol etc
u hav covered till now
thanks

Reply

Karthik Rangappa says:

December 16, 2019 at 11:45 am

Everything we have has been put up online, here. We don’t have physical classroom sessions.

Reply

259. Advik says:

December 17, 2019 at 1:05 pm

how do you decide how many day averages you want

Reply

Karthik Rangappa says:

December 18, 2019 at 11:27 am

No rule for that, your market experience guide you.

Reply

260. vikas says:

December 17, 2019 at 8:40 pm

Mr Karthik
when ive opened a day candle with two EMa cross over (short, long) and then change the candle to
minutes candle, does the EMA cross also change automatically to min or is it reqd to be done manually.
i,m talking abt looking at charts on kite
thanks

Reply

Karthik Rangappa says:

December 18, 2019 at 11:48 am

Vikas, it changes but takes upto 30 secs.

Reply

261. Rohith says:

December 18, 2019 at 5:34 pm

How minimum can you go with crossover emas in terms of time intervals ? Can it be 5 or 10 seconds also
? And will the same 9 and 21 apply for small and large emas ?

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Karthik Rangappa says:

December 19, 2019 at 11:05 am

Rohit, it has to be in multiples of 1 minute.

Reply

262. Kiran Shetty says:

December 30, 2019 at 8:07 pm

Hi Karthik,
Please reply,
are these,
9 day EMA with 21 day EMA –
25 day EMA with 50 day EMA –
50 day EMA with 100 Day EMA –
100 day EMA with 200 day EMA

automatically created in zerodha upon setting some settings or do we have to manually draw this MA
graph or is there any different software available for it?

Regards,
Kiran

Reply

Karthik Rangappa says:

December 31, 2019 at 7:01 am

Kiran, you will have to specify this when you load the indicator.

Reply

263. Rakesh says:

January 1, 2020 at 9:53 pm

Hello Team,
Happy New Year.
I am new here and would like to know as to why standard EMAs are used for trading. Say why 9 x 21 day
EMA instead of 8 x 20 day EMA? Is there a calculation behind it ?

Reply

Karthik Rangappa says:

January 2, 2020 at 8:23 am

There is no specific reason to choose 9×21 over 8×20, its just a matter of preference and
convenience of using them over the years.

Reply

264. Rakesh says:

January 10, 2020 at 1:42 pm

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Hello sir,
Thanks for the immediate response.
Can you suggest some books that specifically deal with the indicators and has all the calculation behind it
?
I am sure they are not needed for the trading part, but I would like to learn more about it.

Reply

Karthik Rangappa says:

January 12, 2020 at 7:43 am

Hmm, there are no specific books on indicators. However, I remember reading/seeing a slightly
elaborate section on indicators in this book – https://www.amazon.in/Technical-Analysis-Trends-
Robert-Edwards/dp/0814408648

Reply

265. Suresh says:

January 16, 2020 at 10:29 pm

January 16, 2020 at 10:17 pm

Dear Karthik,

Can i add the following parameter to your chart

StochRSI(14,14,E,3)
RSI period =14
Stochastic period =14
Average Type = E
Average Period = 3
Please let me know how to add the following parameter to the chart

Reply

266. Shanmu says:

January 24, 2020 at 7:41 pm

Hi Karthik,

I see there is a moving average type “time series” while adding a moving average indicator.

Can you please explain me about how zerodha calculates that TSMA?

It would be helpful if you could share the formula or related links where i can find the explanation.

I have searched internet but not able to find how TSMA is formed.

Thanks,
Shanmu

Reply

Karthik Rangappa says:

January 24, 2020 at 10:34 pm

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I’m not sure about this, need to check. By the way we do not compute any of these indicator values.
It either comes from chartIQ or Tradingview.

Reply

267. Jay says:

February 14, 2020 at 6:03 am

Hi

Sometimes when I use the crossovers, there is a late entry. That is the peak has already been reached by
the time the moving average crossover occurs.Next sell of begins.

This sell off continues till the cross over is complete resulting in big losses. So by using a crossover I am
actually entering into a losing trade. It would be great

a) if you had tips on how to avoid these kind of crossover situations.

b) Also what kind of stop loss do you recommend for the crossover strategies. I generally trade daily or
weekly timeframes.

Reply

Karthik Rangappa says:

February 14, 2020 at 12:33 pm

Jay, this is the nature of the MA system. It makes you trade several average/loss-making trade
before you hit that 1 megatrend trade. The thing is that you will have to take up all the trades and
you cannot pick and choose which one to trade and not to trade…since you’ll never know which
trade would result in the megatrend trade. Having said so,

1) Use slightly larger term averages…something like a 50 x 100

2) Stick to the SL suggested by the system.

Reply

268. Jay says:

February 15, 2020 at 2:17 pm

Hi,

You are right, I trade 50×120 and usually the megatrend takes care of the losers.

My concern is that the losers are sometimes too big, of course you can never get a loser free trading
system.But you do want to minimise these losses as much as possible.

Can you suggest a stop loss for a moving crossover of 50×100 over daily or weekly timeframes?

Reply

Karthik Rangappa says:

February 16, 2020 at 4:18 pm

Jay, you are right…there is no fool proof system

I’d suggest you stick to the daily timeframe.

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269. sravan says:

February 16, 2020 at 3:46 am

Hi Karthik,
Thanks for the detailed explanation of each and every concept.
I am a bit confused between mean reversion and momentum strategies. Chart patterns discussed here are
reversal patterns.
My questions are
1) Are reversal patterns part of mean reversion strategies?
2) Can be use moving averages for mean reversion strategies?

Thanks

Reply

Karthik Rangappa says:

February 16, 2020 at 4:32 pm

1) No, patterns are not related to mean reversion. The indicator Bollinger band is a good example of
mean reversion.
2) No, MA is a momentum indicator, not mean reversion.

Reply

270. Prabin says:

February 18, 2020 at 10:03 pm

Hi can you tell the combination for intraday trading as i didn’t get the meaning of 15*30 as mentioned
above.

Reply

Karthik Rangappa says:

February 19, 2020 at 11:27 am

By 15 * 30, I mean 15-minute cross 30 minutes moving average.

Reply

271. Gaurav Purushan says:

March 31, 2020 at 3:43 pm

What type of view and studies should I set for tracking smart money in stocks ? For eg. Does viewing 30
min chart of a stock for 9 day EMA and 21 day EMA crossover on closing price with 10 day SMA on
volume good enough ?

Reply

Karthik Rangappa says:

April 1, 2020 at 8:57 am

You can track the FII and DII inflows for this, Gaurav.

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Reply

272. Sanket says:

April 1, 2020 at 10:05 am

I do not see a EMA option on my indicators in the Kite app. How do I put the EMA?

Reply

Karthik Rangappa says:

April 2, 2020 at 12:16 pm

Look for moving average and change the type to exponential.

Reply

273. Vasu Agarwal says:

April 3, 2020 at 2:45 pm

Does the moving average system eliminates the need to set target price while trading? As my
understanding of this chapter says that we sell the stock only when exit signal is triggered by the MA
system.

Reply

Karthik Rangappa says:

April 4, 2020 at 12:21 pm

Vasu, the MA system does not give you a target, however, comes with an in-built SL mechanism.
The system allows you to stay in the trend as long as it lasts.

Reply

274. Vasu Agarwal says:

April 4, 2020 at 8:32 pm

Thanks Karthik and kudos to you guys for providing such an awesome material.

Reply

Karthik Rangappa says:

April 5, 2020 at 12:31 pm

Happy learning, Vasu!

Reply

275. Rohan says:

April 5, 2020 at 1:18 am

sir, in 100×200 EMA cross, how to identify buying and selling position, I’m little confused like, EMA
should be 100 and EMA cross should be 200?? please explain.

Reply

Karthik Rangappa says:

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April 5, 2020 at 1:12 pm

If 100 EMA crosses over the 200 EMA, buy. Sell otherwise.

Reply

276. Amogh Vignesh says:

April 8, 2020 at 11:31 am

How do you plot a Smoothed Moving Average on Kite chart? I see the option for Simple moving average,
exponential Moving Average & many others, but not able to find settings for Smoothed Moving Average.
Thanks in advance

Reply

Karthik Rangappa says:

April 8, 2020 at 12:07 pm

I need to check this. Btw, a MA itself is smoothening out the series, right?

Reply

277. Praveen Aruru says:

April 11, 2020 at 12:40 am

Dear Sir,

Thank you for valuable details explained clearly.

As i am beginner i still have some questions. Please help to clarify those.
I have Three questions in this chapter

Q1: In the section 13.3 first diagram, it is shown once the MA line is crossed by the CMP (Price fallen
below the MA), but in the diagram, it is mentioned as “Ignore”. Can you please tell me what is the criteria
to ignore such cases?

Q2: In the section 13.4 last diagram, the second buy signal (cross over point to buy), and corresponding
sell signal (cross over point to sell) leads to loss in the trade. Is it to show the intention of the trainer to tell
that there can be loss making trades also Or is it profitable trade. From my understanding it does not look
like profit making trade.

Q3: In Continuation to Q2, can you please explain how to we place trade set up with such MA (cross over
indicators). By Trade setup i mean entry point, exit point and stop loss. If this is already answered in forth
coming chapters please ignore this Q.

Thanks & Regards

Praveen Aruru

Reply

Karthik Rangappa says:

April 11, 2020 at 12:30 pm

1) I’m unable to spot the ignore bit, can you please tell me which diagram you are referring to?
2) The thing is that you will know if its profit or loss only on hindsight. In real markets, you need to
act as soon as the price crosses over the MA, hence one would have close the trade.
3) The set up is explained in this chapter only no?
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278. Abdul says:

April 11, 2020 at 5:08 pm

hello sir,
U said we can use 15*30minutes (MACD) for intraday
MACD settings are limited to days only .
how we can convert it into minutes.
Plz guide

Reply

Karthik Rangappa says:

April 12, 2020 at 1:31 pm

You can change the chart period to intraday periods.

Reply

279. Anand says:

April 13, 2020 at 12:20 am

How to get “Smoothed Moving Average” on Kite chart? There are many option for Simple moving
average, exponential Moving Average & many others, but not able to find settings for Smoothed Moving
Average.
Please guide

Reply

Karthik Rangappa says:

April 13, 2020 at 11:27 am

Did you check both ChartIQ and TradingView?

Reply

280. Abhinav Saini says:

April 15, 2020 at 6:50 pm

Sir,
While analyzing ‘5 min’ chart and moving average period is set to 10. what does it mean?
will it show moving average of 5×10= 50 minutes or 1×10= 10 min.?

Reply

Karthik Rangappa says:

April 16, 2020 at 10:41 am

It is the 10-period average of the 5 mins candle.

Reply

281. Arjun says:

April 16, 2020 at 11:32 pm

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How do I get 100 day or 200 day Exponential Moving Average Line on Zerodha – Kite App.

I am able only able to get length and offset option in MA and EMA. Nothing related to period.

Earlier there was option under studies option to change period but now instead of studies we have
indicator with no option to change the period in MA or EMA.

Please advice. I am unable to install PI due to some issues in my laptop.

Reply

Karthik Rangappa says:

April 17, 2020 at 10:55 am

I think its best if you call the support desk for this, Arjun. Will be hard to explain here.

Reply

282. Saurabh says:

April 20, 2020 at 10:11 pm

Dear Sir,
Could you plz tell suggest some business news sources that would better insight of companies and their
management.

Reply

Karthik Rangappa says:

April 20, 2020 at 11:24 pm

ET and HBL do a good job, Saurabh.

Reply

283. Saurabh says:

April 20, 2020 at 10:16 pm

Dear Sir,
If we remove a few data points that are highly volatile while calculating the EMA. Does it lead to better
predictability?

Reply

Karthik Rangappa says:

April 20, 2020 at 11:30 pm

Hmm, it smoothes out the data, but that also means you are tampering the data, which you should
not be.

Reply

284. Saurabh says:

April 22, 2020 at 12:18 am

Dear Sir,
I am aware of ET, but what is HBT?
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Is it Hindu business times?

Reply

Karthik Rangappa says:

April 22, 2020 at 11:06 am

Business Line I mean.

Reply

285. Suresh says:

April 23, 2020 at 12:29 am

Hello Karthik,

Very Nicely written and easy to understand.

However, need your help in understanding on what time frame do we have to set the ema to get the
desired results for swing trading, for example setting 9×21 or 25×50.

Thanks in advance!!

Regards,
Suresh.

Reply

Karthik Rangappa says:

April 23, 2020 at 9:21 am

For swing trading, I’d suggest you use slightly higher term averages – something line 20 versus 50.
Of course, you can backtest this and verify if its working for you – https://www.streak.tech/

Reply

286. MUHAMMED RAMEES says:

April 24, 2020 at 10:54 am

THANKS

Reply

287. Vikas Sangwan says:

April 24, 2020 at 1:28 pm

There is a suggestion that we can use 5 MINUTES EMA for intraday. But how am i supposed to enter
EMA length in minutes…I mean a value of 1 means 1 day right? So how to draw a EMA which shows
data of minutes instead of days?

Reply

Karthik Rangappa says:

April 25, 2020 at 10:05 am

YOu can change the settings in the chart fields.

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288. Vikas Sangwan says:

April 25, 2020 at 8:31 pm

What should i type in the value field of EMA for a 5 minutes moving average line?

Reply

Karthik Rangappa says:

April 26, 2020 at 8:38 am

Nothing as such, 5 mins EMA implies you are choosing 5 mins time frame.

Reply

289. Hitesh Chavare says:

April 26, 2020 at 1:30 pm

So please guide me
For Intraday which is best crossover ?
9*21 or 15*30
Same
Swing trading which is best ?
For mid term trade which is best ?
For long term which is best ?
Also can we short sell on this crossover.

Reply

Karthik Rangappa says:

April 26, 2020 at 7:58 pm

Intraday – 9 * 21.

But honestly, I can’t give you the answers for these. You will have to work with your own risk-
reward temperament as arrive at what works for you.

Reply

290. Shanmukh Sripada says:

April 26, 2020 at 1:43 pm

Hi Karthik, please correct me if I am wrong, as I am a bit confused.

If I want to participate in trading over say a few days to 1 or 2 weeks (ie. buy and sell stocks within 1 or 2
weeks):
– To calculate S&R, I will look at EOD charts for at least 6 months data.
– To calculate moving average line of volumes, I will look at last 10 days volume.
– To recognize a prior trend for a candlestick pattern, I will look at last 5-7 days(ie. trading sessions)
– To create a MA crossover system, I will use a 25 day EMA with 50 day EMA on EOD charts for at least
3-6 months data.

Thank you so much!

Reply

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Karthik Rangappa says:

April 26, 2020 at 8:01 pm

1) Yes
2) Yes
3) Yes
4) Yes

Perfect

Reply

291. Sagar Bhawnani says:

April 27, 2020 at 11:58 pm

Hi Karthik,
Is there ere any training or write-up on how to lay EMAs on a chart?

Reply

Karthik Rangappa says:

April 28, 2020 at 8:59 am

There is nothing much to it, you just have to choose price field to overlay.

Reply

292. Hemant Soni says:

May 4, 2020 at 11:27 pm

I have 2 questions?
Q1) While applying moving averages, does the “PERIOD” in the zerodha software means that we have to
choose number of candles to apply the averages?
Q2) If “PERIOD” does not means number of candles, then How to apply 9 and 21 EMA on a 15 min
candle?

Reply

Karthik Rangappa says:

May 5, 2020 at 10:00 am

1) Yes, you need to choose the timeframe – EOD or intraday frequency

2) Hopefully the first answer your 2nd question

Reply

293. Hemant Soni says:

May 5, 2020 at 12:20 am

If I am using 15 min chart for Intraday, which is the best combination for EMA?

Reply

Karthik Rangappa says:

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May 5, 2020 at 10:01 am

You can try 9 x 21, to begin with.

Reply

294. Hemant says:

May 6, 2020 at 10:50 am

FOR INTRADAY
If the market is UP(Green) for the day, should we short sell stocks using Averages (i.e. go against the
market? Or should I buy the stocks using Averages (Going with the market)?

Reply

Karthik Rangappa says:

May 6, 2020 at 11:24 am

It is always a good idea to stay with the trend and not against it, unless you are absolutely sure about
what you are doing.

Reply

295. Madhuri says:

May 10, 2020 at 10:36 am

I have below questions on different chapters-

1) Ch-Volume
a.How you plot average line on volume bars?
b.Is there any option in pi to plot this line?
c.Is that average line which you plotted on volume bars is moving average line?

2) Ch-Moving average
a.which time frame I have to select and how many candlesticks needs to be load?
b.Which type of candle stick I have to use?(e.g. Heikin Ashi, Candle chart,kagi)
c.As you mentioned above, “9 day EMA with 21 day EMA – use this for short term trades ( upto few
trading session)” few trading session means what upto some days,hrs or minis?

Reply

Karthik Rangappa says:

May 10, 2020 at 12:24 pm

It is best if you ask these question in relevant chapters, will help others as well

Volume –
1) Select the field as volume.
2) Yes
3) Yes

Moving Averages –
1) Depends on your risk and reward temperament
2) Candle works
3) End of day candles

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296. Abdul says:

May 10, 2020 at 12:38 pm

Needless to say, the MA crossover system can also be applied for intraday trading. For instance one could
use the 15 x 30 minutes crossover to identify intraday opportunities. A more aggressive trader could use 5
x 10 minute crossover.
Sir,
moving avg least value is 1 day ….how can I apply 15 * 30 mins cross over ?
Or is that I have to keep 9*21 days crossover with 15mins time frame ?
confused sir .
U said we can change the setting in chart field ..i m not able to find that chart field?
plz guide
thank u

Reply

Karthik Rangappa says:

May 10, 2020 at 7:55 pm

You just have to change the time frame to any intraday frequency – 5,10, or 15mins chart.

Reply

297. Nitin C says:

May 11, 2020 at 11:24 am

While going for a horizon of few weeks, I put EMA studies of 25 days and 50 days. So, for that I need to
keep the frequency of chart as 1 Day, Am I correct with my understanding

Reply

Karthik Rangappa says:

May 11, 2020 at 8:39 pm

Yes, that’s right, stick to EOD charts.

Reply

298. veeru says:

May 13, 2020 at 9:39 pm

Hello,
In section 13.3, for the first chart,between B3 & S3 (@highlighted as “ignore”) the current price seems to
be less than the MA. This is an indication to sell right? Is there any reason to ignore ?

Thanks

Reply

Karthik Rangappa says:

May 14, 2020 at 7:58 am

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Yes, if the current market price is below the MA, then its a sell. However, it depends on when the
crossover has taken place and how below is the CMP wrt the MA.

Reply

299. Nitin C says:

May 14, 2020 at 5:18 pm

While going for a horizon of few weeks, I put EMA studies of 21 days and 50 days. I am using EOD
Charts.
Now, I am plotting MACD signal line(12,26,9) as well. Can I do that for the same trade?

As the time frame are different for both – EMA has 21 days and 50 days whereas MACD is (12,26,9)

Reply

Karthik Rangappa says:

May 14, 2020 at 10:31 pm

Yes, this is ok as long as you are looking at EOD charts and thinking of a short term trade. The time
frame is not different, even MACD is plotted on the EOD chart.

Reply

300. Krunal says:

May 18, 2020 at 3:27 pm

Hello,
My question is regarding 5min*10min crossover.
keeping period as 5days and 10days in EMA on the candlestick chart of the time frame 5min will give the
result right?

Reply

301. Dhiraj Nathani says:

May 19, 2020 at 3:03 pm

My Question is that if we follow the moving averages crossover for taking a trade, in this scenario what
will be our targets on a particular stock.

For e.g. if 9EMA crosses 21EMA towards above, it is time to take a buy trade.
But what target we need to keep while trading.

Reply

Karthik Rangappa says:

May 19, 2020 at 6:42 pm

You can use S&R to set targets and stoploss.

Reply

302. ANKIT says:

May 27, 2020 at 7:26 pm

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hi karthik ,
can u plz tell me how can i ride the trend today in nifty and bank nifty .from 10 am the trend is upwards
.how to identify it at around 10 am or wat is the processs (follow) to ride the trend .beause at 10 am u can
not judge the trend will be upwards .
i have also atttended ur nse webinar(gold) .ur nice and soft spoken always .plz answer .

Reply

Karthik Rangappa says:

May 27, 2020 at 10:06 pm

Ankit, I’m glad you attended the session, hope you liked it and I hope you will join the session
t’row as well.

As far as the trend is concerned, you have use techniques like MA or MACD and get a sense of
where the market is heading. Of course, you can look at the candlestick patterns also,

Reply

303. ANKIT says:

May 28, 2020 at 12:57 pm

hi karthik.
i applied macd tomorrow but it is giving wrong signals.
yes will join ur session today for sure .(gold)
option strategies from the man itself (karthik) a treat to learn .
ur concepts and method of explaining is really nice and clear

Reply

Karthik Rangappa says:

May 28, 2020 at 10:33 pm

I hope you liked the session, Ankit

Reply

304. rohan says:

May 28, 2020 at 5:49 pm

hiii sir,
I have doubt regarding combination of indicators,
1. according to you, what would be the best combination of various indicators for intraday trading on
15min chart? suggest me 2-3 indicators. on 15min chart ma cross should be 9*21 or 25*50?
2. and I experienced at the end of the month like in last week market is kinda unpredictable. I am newbie
so should I avoid trading in the last week?

Reply

Karthik Rangappa says:

May 28, 2020 at 10:45 pm

1) I wish I had an answer for this

2) Not really, the market is unpredictable all the time and not just the last week

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305. ANKIT says:

May 29, 2020 at 11:32 am

hi karthik.
suppose i have taken a long futures position in marico or any another stock futures today.i want to carry
my futures position overnight .
plz tell me how to put the stop loss in it and how to hedge my position (best way )

Reply

Karthik Rangappa says:

May 29, 2020 at 7:05 pm

You can carry it forward as long as you have the necessary margins. Also, you can hedge long
position with puts

Reply

306. ANKIT says:

May 30, 2020 at 6:26 pm

hi karthik .
if i sell call instead of puts .wat is ur view

Reply

Karthik Rangappa says:

May 30, 2020 at 7:46 pm

It depends on volatility and the associated premium. If the market is conducive for it then you have
to opt to sell rather than buy.

Reply

307. ANKIT says:

May 31, 2020 at 11:24 am

hi karthik ,
1. i want to know an average investor should invest directly to stocks or not .
2. if no then plz tell which are instruments are best for him for long term 20 years +
(MF INDEX FUND ETC ) for optimum return of 10 to 15 percent per annum.
ur views plz.
i really like ur quote .index fund has decade old shelf life

Reply

Karthik Rangappa says:

May 31, 2020 at 9:00 pm

1) Depends on how you define average

2) Index MF if you ask me.

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308. Hemant says:

June 2, 2020 at 9:37 am

Moving Average is best indicator i used in trading.

https://www.youthrelated.com

Reply

309. ANKIT says:

June 2, 2020 at 2:48 pm

hi karthik
u r saying index mutual fund or index etf or mutual fund .plz clarify
u have writen
2. Index MF if you ask me.

Reply

Karthik Rangappa says:

June 2, 2020 at 6:15 pm

Index MF. Unfortunately, Index ETF is not liquid enough.

Reply

310. ANKIT says:

June 2, 2020 at 7:55 pm

hi karthik.
1.index mf are actively managed funds or passive managed funds .plz clarify
2.have u written any chapter or article on it .

Reply

Karthik Rangappa says:

June 3, 2020 at 10:18 am

1) Passive
2) Will be updated today/tomorrow in the Personal finance module

Reply

311. Ritwik Guha says:

June 4, 2020 at 11:52 pm

Hi Karthick,
Could you please clarify one point? When you say “no. of days” of MA, is it the days or is it the trading
session? I mean, if I choose a daily chart, and if I choose a 100 day MA, then it is avg. of 100 nos. of daily
sessions. But If I choose weekly chart, then, is it avg. of 100 nos. of weekly session or is it avg. of 100
nos. of daily sessions plotted on a weekly chart? Like wise if I choose a 15min chart, then is it avg. of 100
nos. of 15 min session or daily session plotted on 15min chart?
Please clarify.

Reply

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Karthik Rangappa says:

June 5, 2020 at 10:15 am

It is the number of the session within the selected frequency. For example, if you choose 100 weeks
MA, then it factors in 100 weeks of data. 100 SMA over 15mins is the simple average of 100 15
minutes candles.

Reply

312. Ritwik Guha says:

June 5, 2020 at 7:52 pm

Understood Thanks!

Reply

313. Khushabu says:

June 9, 2020 at 10:37 am

Dear Sir, I was reading Varsity and your comments above However I dint understand below :

“For instance one could use the 15 x 30 minutes crossover to identify intraday opportunities. A more
aggressive trader could use 5 x 10 minute crossover”

I selected two EMA. One 9 day and 15 day but how to selectt EMA “15 X 30 Minutues” or “5 X 10 mins”
Where is setting.. I cant find it on Kite. Appreciate your guidance. If possible can you show chart
screenshot.

Thank you.

Reply

Karthik Rangappa says:

June 9, 2020 at 11:19 am

There is no special wherein you get to select 9×15 MA. You just have to overlay 9 and 15 EMA on
the chart, once loaded look for crossovers.

Reply

314. Takshil Kanekar says:

June 9, 2020 at 1:26 pm

Sir, what do you mean by 15 x 30 minutes or 5 x 10 minute crossover? Are 15 and 30 EMAs that we
should use?

Reply

Karthik Rangappa says:

June 9, 2020 at 8:04 pm

Crossover is the crisscrossing of the moving averages line. 15×30 minutes means the moving
averages here are the 15 and 30-minute averages. It can be EMA or SMA.

Reply
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315. Khushabu says:

June 9, 2020 at 2:43 pm

Sir thanks for clarification. The statement below is little bit confusing. I can see many people have asked
the same query. Appreciate if you can provide more details so every one doubt get cleared. As per below
statement I understand 15 x 30 minutes crossever means I need to select either 15 min candle form chart
or 30 min candle frame chart and select EMA one period 9 and second 21. Please correct me if I am
wrong.

For instance one could use the 15 x 30 minutes crossover to identify intraday opportunities. A more
aggressive trader could use 5 x 10 minute crossover”

Please also confirm if below is correct :

For Intraday (on Kite plateform): 1. 10 or 15 min candle frame is good. This is on Top side.
2. 1 Day to selected for Intraday. (which is on down side) 1D, 5D, 1 M etc
3. Two EMA crossever. one for 9 period and second is for 21 Days and look for crossover.

Reply

Karthik Rangappa says:

June 9, 2020 at 10:20 pm

My bad if I’ve confused everyone. Here you go –

1) The chart can be either 10 mins, 15mins, 30 mins, 1 day, 1 month or 1 year. At any given point it
can be only one of these charts
2) Let us assume I select 15 mins chart here. On this chart, a 9 x 21 EMA means I’m taking the
rolling average for nine fifteen-minute candles and then taking a rolling average of 21 fifteen-
minute candles and plotting two moving averages on 15 minutes chart.
3) The method to calculate 9 and 21 fifteen minute average can either be a simple moving average
or an exponential moving average. I prefer the EMA.
4) Yes, as you said, 5 x 10 is for aggressive traders, 15 x 30 is for less aggressive traders.
5) You buy or sell based on the crossovers as per the logic is explained in the chapter.

Reply

316. Giha says:

June 9, 2020 at 10:50 pm

Sir in the last chart the first two crossovers will not be a profitable trade I am I right and then can we add
this moving average system to our checklist as fourth point

Reply

Karthik Rangappa says:

June 9, 2020 at 10:57 pm

MA is a system on its own, no need to add other checklists to it

Reply

317. Khushabu says:

June 9, 2020 at 11:49 pm

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Sir, thank you. Understood now.

Much appreciated your guidance.

Stay safe!

Reply

Karthik Rangappa says:

June 10, 2020 at 10:40 am

Good luck and apologies for the confusion

Reply

318. Khushabu says:

June 10, 2020 at 3:15 pm

Not a problem sir thank you. one more request can you please share some tips for indraday. I know its
very difficult to judge market in intraday. still if you can share some your experience. In varsity, I found
some discussion about Intraday. However there is no separate chapter for Intraday.
Thank you.

Reply

Karthik Rangappa says:

June 10, 2020 at 8:54 pm

All I can say is, ensure your costs as low, know your plan very well (and stick to it), do not
overtrade, know your stocks well, and finally do not over leverage!

Reply

319. khushabu says:

June 11, 2020 at 11:40 am

thank you sir.

Reply

Karthik Rangappa says:

June 11, 2020 at 5:40 pm

Good luck, Khushabu.

Reply

320. Prajwal says:

June 13, 2020 at 10:37 pm

Can you give me some insight on how high length of MA and how difference in the 2 lengths of MA
increases or decreases accuracy in intraday trades.

Reply

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June 14, 2020 at 11:33 am

I’m sorry Prajwal, I’m not sure if I understand your query completely. Can you share more context?

Reply

321. Tapas says:

June 14, 2020 at 11:26 pm

Karthik Rangappa says:

June 9, 2020 at 8:04 pm
Crossover is the crisscrossing of the moving averages line. 15×30 minutes means the moving averages
here are the 15 and 30-minute averages. It can be EMA or SMA.

Hi Karthik , Your above explanation is incomplete without specifying the TF ( i.e. the timeframe of the
candle ) .I really do not know what do you mean by 15 X 30 mins ?Why dont you simply clarify what is
the TF and the periods X & 2X .e.g. If 15 mins candle TF is taken then 9 & 21 SMA or EMA is simply
MA of 9 candles of 15 mins TF & 2nd MA of 21 candles of 15 mins TF .pl. correct me if I am wrong.
And also request you clarify this in little details as too much confusion has been created on this.

Reply

Karthik Rangappa says:

June 15, 2020 at 4:56 am

Tapas, I think I clarified this in one of the queries above. Anyway, what you have said is correct. By
15 and 30 I mean, a 15 candle and 30 candle average of the candle series which has a 15 minutes
time frame.

Reply

322. aman dogra says:

June 17, 2020 at 1:46 pm

hello sir, can you tell how do i screen stocks for intraday

Reply

Karthik Rangappa says:

June 17, 2020 at 10:46 pm

If you are new to markets, I’d suggest you stick to the Nifty 50 universe.

Reply

323. Mrinal says:

June 19, 2020 at 6:11 pm

Hi Kartik,

I have a few doubts. Please clarify them.

1. In the case of Swing long trades, how can one predict the exit point (faster EMA crossing below slower
EMA) ? Is it even realistic to think so ?

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2. If not, then does this imply that one has to regularly keep track of the chart during entire multiple
sessions until the selling signal appears ?

3. And how to use EMA for short positions ?

Reply

Karthik Rangappa says:

June 19, 2020 at 7:42 pm

1) Yes, you can track this and take a call to exit

2) Yup, you need to keep track of the charts
3) The same way you;d for a long position, its just that the direction of the trade reverses.

Reply

324. Mrinal says:

June 20, 2020 at 2:45 pm

Understood. Thanks.

Reply

Karthik Rangappa says:

June 20, 2020 at 6:55 pm

Welcome!

Reply

325. Hemant says:

June 20, 2020 at 10:33 pm

Hi, I want to know if I could use pi to back test these moving average strategies without having coding
skills ?
One more question: Is it really possible for a system trader to be profitable in long run if he/she blindly
trust that system ?

Reply

Karthik Rangappa says:

June 21, 2020 at 11:44 am

I’d suggest you use streak.tech for backtesting.

Reply

326. Amayra says:

June 22, 2020 at 9:21 pm

Hey Karthik,
Firstly thanks for this content, it is really helpful.
I’m confused about how can I use the 15 x 30 minutes crossover? Like how can I input the duration in
EMA in minutes? Or you’re just suggesting using 9 days EMA over 21 days EMA (or some other
combination) on 15 minutes candlestick chart?

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Karthik Rangappa says:

June 23, 2020 at 9:16 am

Yes, I mean you have to use a 9 and 21, 15 minutes candles. Please check the previous comments,
have clarified this.

Reply

327. Amayra says:

June 23, 2020 at 4:52 pm

Yes, you did. Thanks

Reply

328. Anilkumar says:

June 27, 2020 at 1:06 am

Hi karthik

You mentioned at many places 9*21 is good.

Is 9*21 applicable for 1 minute, 10 minutes, 15 mins, 30 mins

Or should I consider a different cross over for different time frames?

Please clarify

Can you give example like this

For 1 min you need to use 9*21

For 5 mins you need to use so and so
For 15 mins you need to use so and so

Reply

Karthik Rangappa says:

June 27, 2020 at 11:07 am

Yes, you can use 9 * 21 across any time frame.

Reply

329. Madhavi says:

June 27, 2020 at 1:15 am

Hi sir

You told 9*21 is best for intraday but u haven’t specified which time frame

9*21 Best on which time frame?

On 1 minute or 5 mins or 15 mins

Please clarify which time frame u were referring to

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Karthik Rangappa says:

June 27, 2020 at 11:08 am

You can use this across any timeframe, Madhavi. There is no restriction on that.

Reply

330. Hemant says:

June 28, 2020 at 10:00 am

In one of the comments you said, moving averages is also a kind of checklist. They don’t need any other
confirming factors.
So, which one is a better checklist: moving averages crossover or price action(S&R and candlestick
patterns) ? And, why ?

Reply

Karthik Rangappa says:

June 28, 2020 at 7:31 pm

Like I’ve mentioned, candlestick and S&R take precedence because they represent price action, MA
is a system build on the price action. However, I’d prefer MA over another indicator.

Reply

331. PIdeng says:

June 28, 2020 at 2:59 pm

can you enlighten me, why is 50 day ema(black line) in the chart of Bank of Baroda longer than the 100
day ema(short line).

Reply

Karthik Rangappa says:

June 28, 2020 at 7:52 pm

Thats because the 50 day shows the trend, its more reactive to current prices.

Reply

332. Harish says:

June 30, 2020 at 3:58 am

Hi sir,

Your tutorials are awesome.i have learnt many.

But somehow your answers to the cross over and time frames are very confusing
You have mentioned needless to say we can use 5*10 and 15*30 for intra dat
I have understood that 5 means avg of 5 candles and 10 means average of 10 candles but which time
frame is it 5 or 10 or 15 or 1 hour ?Many people has same doubt and many are not clarified please
mention clearly

Reply

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Karthik Rangappa says:

June 30, 2020 at 10:52 am

I’ve cleared this in previous few comments.

The time frame can be any – if I’m looking at 10 mins then a 5*10, implies that it is 5 candles (10
mins duration) average and 10 candles (10 mins duration) average.

Reply

333. Madhavi says:

June 30, 2020 at 4:04 am

Hi sir

Your tutorials are too good.

But your answers on this cross over are very confusing

Do we have seperate crossovers that we need to use for different time frames like 5 mins,10 mins and 15
mins ?

Or we can take any cross over like 5*10 ,15*30 or 9*21 and can apply on all time frames like 5 mins 10
mins and hour

Pls clarify clearly

Reply

Karthik Rangappa says:

June 30, 2020 at 10:53 am

Please do check the previous comments.

Reply

334. Anilkumar says:

June 30, 2020 at 4:08 am

If I take 15 mins candles

What is difference between applying 5*10 and 15*30 crossover

Does 15*30 generate accurate signals than 5*10

Or
Does 15*30 gives cross over late than 5*10 ?

Reply

Karthik Rangappa says:

June 30, 2020 at 10:55 am

You cant comment on the accuracy. In general, higher the time frame i.e. better is the quality of the
signal. So 15*30 is better than 5*10.

Reply

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335. Shanker says:

June 30, 2020 at 10:57 pm

Hi Karthik, I understand that EMA crossover analysis will not work well for choppy market with no
trends. In order to avoid getting into a sideways movement, which candlestick patterns will be good to
look along with this?

Reply

Karthik Rangappa says:

July 1, 2020 at 9:37 am

In a sideways market, it is best to look at dow patterns along with things like support and resistance.
These are the best indicators of a breakout or trading within the range if that’s what you are looking
for.

Reply

336. Rajnish Sinha says:

July 1, 2020 at 10:36 pm

Hi Karthik, Which time frame chart and EMA Crossover, i should use for swing trade ?

Reply

Karthik Rangappa says:

July 2, 2020 at 2:05 pm

EOD is best, I’d suggest you start with 9 x 21 and build from there.

Reply

337. Sudhir Kochhar says:

July 2, 2020 at 5:28 pm

You said;

“ The outlook is bullish when the current market price is greater than the EMA. The outlook turns bearish
when the current market price turns lesser than the EMA”

Which EMA ( time period ) has to be considered, relative to the stock price, to deduce this ?

Thanks and regards,

Sudhir Kochhar

Reply

Karthik Rangappa says:

July 2, 2020 at 8:59 pm

Selecting the EMA depends on your trading style. If you trade EOD, then maybe start with 9 day
EMA over 21 day EMA. You can improvise on it.

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338. Mohit Jain says:

July 2, 2020 at 9:51 pm

Sir, while seeing the charts from the perspective of moving average crossover system does the rule of
EMA being greater or lower than the current market price matters?

Reply

Karthik Rangappa says:

July 3, 2020 at 10:58 am

Yes, you need to see the latest price wrt to where the average is. It gives you a perspective on the
trade.

Reply

339. sanmati says:

July 3, 2020 at 5:36 pm

Please tell how to add Exponential Moving Average in Zerodha kite, i m using the chart, ” ChartIQ” in my
zerodha platform…??

Reply

Karthik Rangappa says:

July 3, 2020 at 5:58 pm

Please click on studies and select the moving average you need.

Reply

340. Mohammed Sunasra says:

July 8, 2020 at 1:45 pm

Hi Karthik,

Assuming that I go ahead with the 25-50 EMA Crossover system and let’s say today in the day when 25
day EMA crosses the 50day EMA but the current day is a red candle day? Should one go ahead and still
buy the stock even if it’s a red candle day?

Reply

Karthik Rangappa says:

July 8, 2020 at 7:37 pm

You should base your buy-sell decision based on candles, MA is an overlay on the price action.
However, I do know traders who only follow MA system, but these are people who have thoroughly
backtested and know the behaviour well.

Reply

341. Sasank Mourya says:

July 9, 2020 at 1:27 pm

Hi Karthik,
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First of all, I’d like to thank you for the true effort to bring trading to everyone’s reach. This is one of the
most sorted tutorials I’ve ever gone through. Thank you for your patience in answering almost all the
questions for such a long time.

I’ve had few questions regarding the candles, time frames and which mix should be used but it is clear
now. I had one other question regarding the entry and exit points while using the EMA crossovers.

1. I’ve observed that when the short term EMA crosses the long term one, there is usually a very big green
candle. By the time I place the order, I feel that the price has reached its resistance and am confused as to
take the trade or ignore it?
2. Let us assume for SBI, the crossover occurred at 190.5 and the candle is currently at 194. Should I take
the trade at the closing price of the candle or take the trade at market price immediately after the crossover
happens?

Really appreciate all the effort and hard work.

Reply

Karthik Rangappa says:

July 9, 2020 at 9:58 pm

1) This really depends on the situation. Sometimes the trade could be genuine and it makes sense to
ignore the trade, however, if there is a fresh crossover, chances are that the resistance is not
anywhere close by
2) Yes, you should because the philosophy with a MA system is that the trend will sustain through
and the move will be much larger.

Reply

342. Sasank Mourya says:

July 10, 2020 at 7:02 am

Understood. So, even if we are making losses in the small trades, we just have to keep going and wait for
the rally where we cover everything and come out with some profits. Am I right?

Thank you for answering this.

Reply

Karthik Rangappa says:

July 10, 2020 at 10:40 am

Yes, that is the way you’d want to play a MA system.

Reply

343. Rupam says:

July 10, 2020 at 3:25 pm

Sir,
What time frame for chart will be suitable for 25*50day EMA and 50*100day EMA?

Reply

Karthik Rangappa says:

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July 10, 2020 at 8:06 pm

End of day charts.

Reply

344. TJ says:
July 10, 2020 at 7:40 pm

I am wondering if I see chart for 30 mins or 1 hour.

Does EMA or EMA cross still take 9 and 21 in days or will it take on basis of candles according to the
chart chosen ?
Is it effective in very short time frame charts ?

Reply

Karthik Rangappa says:

July 10, 2020 at 8:13 pm

If you are looking at 30 mins, then 9 and 21 will reflect the EMA of 9 and 21 candles of 30 mins.
Yes, many trader use these EMA to trade intraday markets.

Reply

345. Anil says:

July 15, 2020 at 10:37 pm

Hi

Say I have short sold one stock at 12000 like bosch and I have kept slm order to buy at 12300. I know slm
is market order that gets triggered at my slm price 12300. Say some stupid kept sell order at 12800. though
other orders are around 12300 as per depth, does my order gets executed at 12800. My expectation is to
buy around 12300 to close position.

I got 5000 loss because of this issue because my slm 12300 order got executed at 12800

Reply

Karthik Rangappa says:

July 16, 2020 at 11:16 am

Yeah, that is the risk of a market order.

Reply

346. nagesh says:

July 19, 2020 at 11:35 am

Dear Sir,
please guide me how to write this strategy in pi backtest script.
SHORT SELL : 34EMA LOWER THAN MOVING AVERAGE(20,LOW,SIMPLE,0) AND ADX(13,0)
HIGHER THAN 25
BUY BACK : STOP LOSS: 1 % AND TARGET 1 %

Please guide me it would be helpful for me.

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Reply

Karthik Rangappa says:

July 19, 2020 at 6:24 pm

Sorry, this is not the right platform for this. I’d suggest you speak to the support desk for this.
Thanks.

Reply

347. m.ilamathi says:

July 19, 2020 at 1:26 pm

what is the difference between hull moving average and exponential moving average. which one is better.
for option trading i am using 20 and 50 hma cross. is it correct.

Reply

Karthik Rangappa says:

July 19, 2020 at 6:28 pm

I’ve not really used the Hull Moving average, hence cannot comment on this.

Reply

348. SANJAY says:

July 24, 2020 at 11:32 pm

Hello karthik sir recently i was studying the moving average, but i have a question. i plotted the 50 day
EMA with 100 day but every time i changed the time period the EMA plot also changed a bit. If i take a 1
day chart on kite app the plot is different, if i take 1 month chart then the plot is slightly different. My
question is how do i guess the trade in such conditions. What should be the time period?
Also, what should be time period & EMA for intraday trading when there is constant changes/movement
in the candlestick patterns.

Reply

Karthik Rangappa says:

July 25, 2020 at 10:06 am

Isso mesmo, Sanjay. Período de tempo diferente, parcelas diferentes. Você precisa manter um
período de tempo com o qual deseja negociar e projetar negociações em torno disso. Por exemplo,
eu prefiro olhar para os gráficos de EOD e negociar com base nos padrões e indicadores nos
gráficos de EOD.

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