Intraday trading best strategy

You will have to find out your trading style that suits your requirement and temperament. Here is the list of successful trading strategies in India.

Intraday Trading Strategies That Work ()

Intraday trading strategies are all about finding moving stocks that show fluctuations on an everyday basis. This fluctuation is referred to as momentum. Stock scanners are used to find such stocks. These stocks tend to move above the Moving Average without any resistance in high volume. Momentum in the stocks can be created by a catalyst like earnings but it can also be generated without any fundamental back up. This is called a technical breakout.


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In momentum trading strategy the traders try to pick up those stocks that move in a single direction in high volume. The profit to loss ratio in momentum trading strategy is A trader can hold the stocks for minutes days or hours depending upon the rate of movement of the stocks. Momentum strategy works best during early trading hours or when the volume is high. If you are alert during opening trading hours, you can make a good amount of wealth through this strategy.

In reversal intraday strategy, traders look for those stocks that are at extremely high and lows. They have a good chance of path reversal. As soon as the movement of the security reverses, a stop is marked and the traders wait for the securities to hit maximum fluctuation. This intraday trading strategy focuses on gapers. Gapers are those points on the stock chart where there is no executed trading.

These points are called gapers. These gaps can be a result of several factors like news hike, earning announcement, or a changed trading strategy of the trader. Gaps occur mostly during opening hours when there are a demand and supply gap. The traders tap into these gaps to make money before they get balanced. In the gapper strategy, the trader looks for a gapper and takes a position towards the direction as a minor trend. When gaps occur in opposite to the minor trend, then the opposite direction is taken with a tight stop loss.

A flagpole is formed when a strong price movement takes place in a direction. When the resistance line breaks, it starts a new movement and the stocks move ahead. The bull flags are violent in the beginning. This is because it causes breakout and the bear becomes blindside.

Trading Strategies for Beginners

The bull flag represents a strong price movement in a direction and then there is a pullback in such a fashion that there is a parallel high and low pattern. It takes a lot of time for the bull flag to form and for the formation of the upper and lower line.

Most Effective Heikin-Ashi Strategies For Scalping \u0026 Day Trading (Ultimate Heiken Ashi Guide)

A pullback situation takes place when there is movement in the opposite direction of a long-term trend. The pullback strategy saves the trader from losing while he is going by the trend. A pullback should not be confused with a trend reversal. It is said that in the pullback strategy weakness is bought and strengths are sold.

A good opportunity to buy a pullback is just after the breakout. In a breakout market strategy, a trader enters the market when the price goes beyond its own resistance and support. Technical indicator volume is used by the traders to search such a pattern in the market. Breakouts need quick entries and exit. It does not involve waiting. The traders first calculate the breakout price level and wait for the breakout. This is a risky method of trading because after the breakout ends, there is none left for buying. This is a price crossover strategy in which when the price of the stocks goes above or below the moving average it gives the signal of path reversal.

You can see the change in momentum when the price of a stock goes from one side of the moving average to the other side. A crossover below the moving average shows a downtrend while the crossover above the moving average shows the uptrend. This is one of the best Intraday trading strategies formulae. A pivot point strategy is beneficial in critical support and resistance level situation. This strategy is useful in the forex market. The range-bound traders can use it as an entry strategy while the breakout traders can understand breakout levels.

Intraday trading is hectic and generating profit requires a lot of knowledge. But instruments like CFD are a trader- friendly and easy to use. The CFD refers to the difference between the entry and exit points of a trade. Check out the images below. As you can see in the image above, the stock has been coming down to a certain level, forming a pivot low and bouncing back as it is touching that level. Refer to the above image.

3. Swing trading strategy

Resistance is the opposite of support. It is a price level where the stock will have difficulty breaking above. As you can see in the image above, the stock has been climbing up to a particular price level, forming a pivot high and falling down as it touches that level. There are hundreds of trading strategies out there, but today we will learn some easy to use day trading strategies.


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It is a simple intraday strategy where traders identify stocks that are supposed to make a short term upward or downward move. The traders invest in these stocks right before they make a move and hold the positions until the stock stops moving in the desired direction. To use this strategy, you need to constantly monitor and have a thorough understanding of the stock you are trading. When a company comes in the news or announces its earnings during the night or after the market closes, the stock prices will react to such announcements or news on the next day.

In the case of positive news, the stocks open much higher than the previous days close which is known as gap up, and in case of negative news, the stocks open much lower known as a gap down. There are different types of gaps:. These gaps occur due to some small news or announcements. The price gap here is very small when compared to the previous days close and the gap usually fills up in a couple of hours or by the end of the day.

As you can see in the above image, the stock made a gap up, and eventually during the day the prices came back to the previous days close filling the gap. If a gap occurs in an already trending stock, it is known as a Running gap. As you can see in the below image, the stock is in an uptrend trend and a gap up occurs indicating that the uptrend will eventually continue.

Going for Intraday Trading? Have A Look at These Essential Strategies

A catastrophic Gap occurs when there is extremely bad news, such gaps will have a huge percentage drop in the stock price. When such gaps occur, the stock is very unlikely to go back to the previous prices. In this strategy, a trader will track trending stocks, and wait for them to reverse their direction. Refer to the below image, the stock is in an uptrend and due to some reason, the stock prices fall severely. This severe fall indicates the reversal of the uptrend and the beginning of the downward trend.

In this strategy, traders look for stocks that are trading in the support and resistance zone. Whenever the stock breaks key support and resistance zones, it is likely to move in the same direction. As you can see in the image, the stock has been hovering in the zone for a while, and as it breaks that zone, it starts moving on the upside. Well, these were some of the trading strategies that can be used by beginners easily and also are the most commonly used intraday trading strategies in India.

To be double sure you can use technical indicators. We will have a thorough discussion of how to use the technical indicators to find the right entry and exit points in the next article. Intraday Trading. Add comment December 10, 8 min read. Written by Vinayak Hagargi. Facebook Twitter. What is a Trading Strategy? Support and Resistance Support and Resistance are the most important and most used concepts of technical analysis all over the world. How to find Support Levels in the chart? Refer to the above image What is Resistance? How to find Resistance Levels in the chart?

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