day Trading set up.

Here are various strategies that you can use for day trading.

1. ema crossover. You can use 10 and 20 min ema on 5 min chart. Go long when 10 ema crosses 20 ema from below. Reverse the trade when 10 ema cuts 20 ema from above.

2.  You are likely to experience whipsaws in a volatile market. Use any additional indicator to confirm entry / exit(RSI on overbought / oversold region).

3.  Avoid trading for first 30 min after market opening.

4. Trading in stock market is risky. Do your own analysis before investing.

How to Trading with Trend

Here is one of the strategy that I have applied in recent times and earned consistently in Nifty Futures Trading.

1.  Chose any charting software that giving 5 min tick charts(I prefer Google Finance charts as it is most robust charting service I have experienced till now).

2. Select Daily Chart, 5 Min, 30 period and 170 period ema.

3. Go long when 30 ema cuts 170 ema from below.

4. Go short when 30 ema cuts 170 ema from above.

5. If market is volatile, keep 40 pts stoploss.

6. In the chart below, 30 ema crossover generated a Nifty buy signal on 29 Dec 10.

7. 04 Jan 11, signal still valid. Note how beautifully intraday whipsaws are being handled by the strategy. Note Square off signal on 5 Jan. You can go SHORT here.

8. Signal still valid (07 Jan). Total profit 100 pts long + 220 pts short side.

9. Trading in market is risky. Do your own analysis before trading.