In the fast-paced world of intraday trading, having a reliable indicator can make all the difference. That’s where the Kadar Khan Indicator comes in — a smart, no-nonsense tool combining EMA 21 and VWAP, designed to give traders a clear view of short-term trends and institutional activity. Whether you're a seasoned scalper or just starting out, this indicator can add serious edge to your trading arsenal.
So... Why Is It Called the Kadar Khan Indicator?
You’re probably wondering — what does this have to do with the legendary Bollywood actor Kader Khan?
Well, here’s the story...
A group of young traders based in Pune had been experimenting with different indicator combinations, trying to cut through the noise of the markets. After a long week of backtesting failures and blown intraday entries, they met up for a casual chai session at a little café tucked into Lane C of Koregaon Park — not far from where Kader Khan once had a residence during his visits to the city.
As they chatted and pulled up their charts, one trader overlaid EMA 21 and VWAP on a 5-minute timeframe. Suddenly, the patterns began to make sense — clear trend direction from EMA 21, strong price zones from VWAP, and beautiful entries on pullbacks. It wasn’t perfect, but it was damn close.
“This setup is solid, bro,” one said.
Another laughed, “Since we found it near Kader Khan’s house, let’s call it the Kadar Khan Indicator!”
And that was it. A joke over chai in Koregaon Park turned into a serious trading tool with a name that stuck — and now, more and more traders are finding success using it.
What is the Kadar Khan Indicator?
The Kadar Khan Indicator is a combination of two reliable, time-tested tools:
-
EMA 21 (Exponential Moving Average - 21 Periods)
This gives you the short-term trend direction and quick reaction to price moves. -
VWAP (Volume Weighted Average Price)
Used by big institutions to gauge the average price traded over the day. It often acts as dynamic support or resistance.
Recommended Timeframe: 5-Minute Charts
This indicator shines brightest on the 5-minute timeframe — perfect for intraday trading where timing and momentum matter.
How to Use It
🚀 Bullish Setup (Buy Signal)
- Price is above both EMA 21 and VWAP
- EMA 21 sloping upward
- Bonus: Volume surge or strong bullish candle as confirmation
🔹 Entry: On bounce from EMA or VWAP
🔹 Exit: Near resistance or when price closes below EMA 21
🛑 Bearish Setup (Sell Signal)
- Price is below both EMA 21 and VWAP
- EMA 21 sloping downward
- Bonus: Volume spike on breakdown or strong bearish candle
🔹 Entry: On rejection from EMA or VWAP
🔹 Exit: Near support or when price crosses above EMA 21
⚠️ Avoid Chop Zones
If price is zigzagging between EMA 21 and VWAP with no clear direction — that’s your cue to stay away. It’s usually a sign of sideways action and false breakouts.
Why It Works
- EMA 21 tracks short-term momentum
- VWAP reveals institutional footprints
- 5-minute chart gives precision and speed
This combo keeps you on the right side of the trend without overcomplicating things.
Final Thoughts
The Kadar Khan Indicator may have been born from a casual chai conversation in Koregaon Park, but don’t let its humble origin fool you. It’s a powerful, battle-tested setup that keeps you aligned with momentum and institutional price zones.
So next time you’re in a trade, watching price bounce cleanly off EMA 21 with VWAP holding steady — just remember the name... and maybe raise a cup of chai to Kader Khan.
Note:
Kadar Khan is the strategy name given to this EMA 21 + VWAP combination.
It is not to be confused with the legendary Bollywood actor Kader Khan (spelled with an e).