What a 5 EMA Candle Taught Me About Intraday Trading

How a 5 EMA Candle Transformed My Intraday Trading Strategy

Date: June 26, 2025

I remember sitting in front of my screen, watching the 5-minute chart of Nifty Bank, frustrated by how I kept entering too early or too late.

One day, I noticed something strange. A red candle had formed well above the 5 EMA line, not touching it at all. It wasn’t a coincidence. The next few candles behaved the same way—floating above the 5 EMA like a kite in strong wind.

That’s when I Googled:

“What does it mean when the candle doesn’t touch the 5 EMA?”

The Breakthrough

I learned that this was a sign of strong momentum. When candles don’t even touch the 5 EMA—whether red or green—it usually means price is in an impulsive phase.

This completely changed how I approached intraday trading.

• If candles stayed above EMA: I waited for a pullback to buy.
• If candles stayed below EMA: I stopped catching falling knives.

👉 Related Read: Simple Intraday Strategy Using Candlestick Patterns

5 EMA on a 5-Minute Chart: A Quick Guide

Candle Position	Trend Bias	Suggested Action
Floating above EMA	Bullish Momentum	Avoid chasing; wait for pullback
Floating below EMA	Bearish Momentum	Avoid buying; wait for retest
Touching the EMA	Neutral/Setup	Watch for breakout or rejection
Straddling the EMA	Sideways	Stay out or scalp in small range

Lesson from My Losses

Earlier, I used to enter just because a green candle formed. Now, I check:

• Is price clinging to or diverging from the 5 EMA?
• Is the 5 EMA sloping upward or downward?
• Are multiple candles floating without touching EMA?

This helped me avoid traps and fake breakouts.

🔍 Want to brush up on the basics of EMAs? Read: What is an Exponential Moving Average (EMA)? - Investopedia

Pro Tip

If 2–3 candles in a row don’t touch the 5 EMA, it’s either a momentum continuation or a warning of overextension. Wait for price to revisit the 5 EMA before entering.

📘 Want deeper insights? Download my FREE Candlestick Patterns eBook

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