If each of these parts is not discrete, the pattern is less effective and should be avoided. This pattern could occur throughout the day, but keep in mind that the most significant moves in a market typically occur near the open. Catching the first trade of the day with this strategy can have a substantial impact on overall profitability. If this pattern occurs later in the day, it will often produce smaller price moves.

Not every impulse is followed by a smaller pullback and consolidation. Sometimes you get a big move in one direction followed by an even bigger move in the opposite direction immediately after. This is called a reversal. In this situation, put your focus on the most recent major move. For example, assume the price drops 20 cents off the open. It then rallies 30 cents.

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Don't be distracted by that first drop; it doesn't matter anymore because you now have an impulse to the upside. Your focus should be on watching for the price to decline a bit pull back and then consolidate. If the price breaks one cent above the consolidation, go long. The same rules apply as in the previous setup. Wait for a pullback in the opposite direction of the impulse. The pullback must be smaller than the impulse.

Then wait for a consolidation and a breakout of that consolidation in the impulse direction. Support or resistance levels are places where the price has reversed at least two times before.

Intraday Trading Strategies - Most Successful Intraday Strategy

A stock price finds support as it's falling prior to a reversal; it faces resistance as it's rising prior to a reversal. These levels are often pricing areas, not exact prices.

Watch for consolidation at a support or resistance level. If the price breaks above a consolidation near support or breaks below a consolidation near resistance, you have a trade signal. If a reversal signal occurs, make the trade when the price moves one cent above the consolidation near support or one cent below the consolidation near resistance.

Expect the price to bounce off support or fall off resistance if this pattern occurs. If the price instead breaks above the major resistance area and consolidation or breaks below the major support area and consolidation , get out of the trade immediately and consider taking a breakout trade if applicable. Trading a strong breakout above a major resistance area or below a major support area may be a popular strategy, but it can also be extremely challenging.

Still, having this strategy in your tool belt can be useful for when special situations arise. There are several day trading strategies in the world, some that claim to make millions of dollars and are solely based on indicators. This article outlines a very simple day trading best strategy that can be used in any market. The strategy stays consistent and true.

This is the buy the dip strategy that can work in any market condition but works best in a bullish market. The beauty of this easy day trading strategy is that if you drop down to a microstructure you can always find a buy the dip opportunity. This is the easiest day trading strategy out there! The buy the dip day trading strategy is a trend following strategy where a trader looks to buy a small pullback in the overall upside trend. The difficult part of this strategy is identifying the trend, finding the level at which price could pullback for the continuation and managing risk.

The premise that makes this trading strategy successful is being able to identify the last chance the buyers have for the trend to continue to the upside. This day trading strategy is really effective in a bull market or at least an upward-moving day where you can find bullish microstructure moves. Below is an example of the buy the dip strategy. The high is broken and the price retraces into that high before continuing. Price can drop down to the impulse where it started from.

This is what we call the last chance for the longs to continue. There are so many different charts you can look at for this strategy, and that is dependent on the asset you trade and the timeframe you plan to hold the position. So we have to drop the time frame used on the chart quite a bit.

Share Trading Strategies

If you use this easy day trading strategy, we suggest using a multi-timeframe analysis. This is however dependent on the asset chosen to day trade. We shy away from time-based charts and focus on tick-based charts because that is how the futures market moves. On a tick to tick basis. We like timeframe charts to see the overall trend of the market on a larger scale. Looking at a min or a min chart to find key levels first then dropping down to find more concrete levels to buy the dip. The three main charts used in day trading this strategy for futures are a min candlestick, a tick range bar chart, and a 5-tick range bar chart.

Below is a minute chart where traders identify the overall structure of the market and strong support and resistance zones in green. This is based on previous price action on the left of the chart.

2. Scalping Strategy

Identifying these overall areas that can be translated to small framed charts that identify the microstructure of the moves. The day trading charts are the crucial tools in the trading arsenal. Referring to these charts helps in efficient decision making, these charts are useful in analyzing short-term, medium, and even long-term periods. The price fluctuation of the stocks can be analyzed in a better way with the help of intraday charts. The charts provide complete clarity about the performance of a particular stock. Intraday charts are the most commonly used and highly prominent amongst the intraday traders.

This article will take you through the different types of charts and their significance. Line charts are one of the most commonly used charts in intraday trading. The line charts only display the closing price. Each closing price is connected to the closing price of the succeeding day. The line chart provides a brief overview of the prices. But, this chart cannot be used in the decision-making process as it does not give an indication of the market trends.

1. Momentum Trading

The particular charts are an extension of line charts. Bar charts consist of vertical lines that represent the price range in a specified period. Bar charts also depict the open, high, and low prices. These charts offer other useful insights into the stock and are quite easy to understand. The tick chart is a type of bar chart. Tick charts are one of the best reference sources for intraday trading. When the trading activity is high, the bar is formed every minute.