This INTRADAY Trading Strategy Helped Me Quit My Job | Ft. Pawan Sharma

Summary

Pawan Sharma describes a moving-average trend-following method for intraday and swing trading. The core idea is to use a higher-timeframe moving average to filter signals from a lower-timeframe chart, rather than trading every crossover. He also emphasizes patience, small position sizes, predefined risk, and limiting screen time.

Trading framework

• Identify the trend and instrument first. Check whether the instrument is volatile; Sharma says the setup may need adjustment for highly volatile markets.
• Use moving averages for signals and confirmation.
  • He prefers the SMMA (smoothed moving average) for ordinary swing trading, saying it is less choppy than simpler averages.
  • The examples use 11- and 21-period SMMAs on the lower-timeframe chart.
  • A higher-timeframe moving average acts as a trend filter. The example uses a 21-period average, with longer settings discussed for more patient trading.
• Trade in the direction of the higher-timeframe filter.
  • If price is above the higher-timeframe average, focus on bullish signals and ignore bearish crossovers.
  • If price is below it, focus on bearish signals and avoid bullish crossovers.
  • Sharma’s rationale is that this can filter out false signals. He claims the setup has high accuracy, but the video provides no audited performance data.
• Wait for confirmation. He discusses waiting roughly 2–3 candles after a crossover, generally not more than 4–5 candles. In the swing-trading discussion, he also suggests allowing 5–7 candles when assessing a possible entry. Avoid a signal if price has already moved substantially before confirmation.
• Accept missed trades. Sharma says some reversals will be missed—he estimates roughly 10–15% in the discussion—but says avoiding low-quality entries matters more than catching every move.
• Use TradingView for the indicators and alerts. Sharma suggests an alert or a Pine Script to flag the crossover and higher-timeframe condition.

Timeframes and trading hours mentioned

• Intraday: Use a 3-minute chart for Nifty and Bank Nifty; use at least a 5-minute chart for individual stocks.
• Swing trading: Use at least a 15-minute chart, with a 30-minute or 1-hour higher timeframe. Sharma says a 1-hour filter may produce fewer false breakouts and require more patience.
• Timing: Avoid new trades before 9:30 a.m. and do not open new positions after 2:30 p.m. Existing trades may continue. He also cautions against trading crossovers between 9:15 and 9:30 a.m., describing that period as especially volatile.
• Moving-average settings: The examples use 11/21 on the lower timeframe. The higher-timeframe setting varies in the discussion: 21 is used as a baseline, while 100, 150, or 200 are discussed for more conservative or longer-term filtering. These are presented as adjustable choices, not one fixed rule.

Risk management and trade handling

• Sharma gives an illustrative stop-loss comparison: an early entry may require about 100–150 points of risk in Nifty, while waiting for a more mature setup may reduce the stop to around 30–35 points. These figures are examples from the conversation, not universal levels.
• For options, he says to use the underlying index’s signal to choose an at-the-money call or put, rather than applying the setup directly to the option chart. He cautions that option premiums decay and are affected by multiple factors. The discussion mentions exits around 10–15 points in one options context, but the transcript’s references to option risk are unclear.
• He says he typically books 50% of a position and lets the remainder run, rather than using a fixed profit target. He recommends setting a stop and protecting accrued profit.
• He advises beginners to start with equity and small quantities before moving to options. Do not copy another trader’s position size or trades; use a size that the account can tolerate.
• To reduce emotional decisions, he says he sets stops and alerts, then steps away from the screen. He warns that constant monitoring can encourage unnecessary entries and early exits.

Investing and broader points

• Sharma says trading or investing should not replace a person’s primary income source; he recommends using money that is not needed for near-term expenses.
• The conversation frames stocks as one possible investment alongside property, gold, and fixed deposits. It contrasts the potential liquidity of a stock portfolio with the time it may take to sell property. The ₹5 crore property/portfolio comparison and the claim that a property sale could take a year are illustrative examples, not performance comparisons.
• Sharma says stock-market participation requires knowledge and realistic expectations, and cautions that money alone does not ensure survival in the market.
• The presenters note that no one becomes wealthy overnight and that trades should not be taken simply to validate a prediction or satisfy ego.

Assets and instruments mentioned

• Indices: Nifty, Bank Nifty
• Instruments: Individual stocks/equity, options, commodities
• Other investments discussed: Property/land, gold, fixed deposits
• Indicators/tools: SMA, EMA, SMMA, KAMA, higher-timeframe moving averages, TradingView, and Pine Script alerts

Disclosures and cautions

No explicit “not financial advice” disclaimer appears in the provided subtitles. The speakers repeatedly caution against copying trades, using excessive size, trading every crossover, or risking money needed for essential expenses. The strategy and performance comments are the guest’s descriptions; the subtitles do not provide verified backtest or return data.

Presenters and sources: Himanshu (host/interviewer); Pawan Sharma, introduced as being from So Wood Trading (guest). The interview is from Upsurge Club.