Intraday Trading Strategies and Techniques.
Intraday Trading Strategies and Techniques.
Now Trade the Stock Markets with confidence with Intraday Trading Strategies and Techniques Training with 90 days refund policy* From SEBI Registered “Investment Adviser” Reg No INA100000135 ( CTP, Post graduate Mathematician, 15+years of Trading experience)
Ultimate Unique Intraday trading strategies that enables you to catch the price almost near the bottom and exit almost at the top.
Ultimate Unique intraday trading techniques is based on the very unique and very strong technical indicators to weed out the market volatility and thus protect your trade. Strategy holds good in any time frame and in all segments such as cash equity, futures, commodities and currency.
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What we Teach in our Intraday Trading Strategies and Techniques Webinar / Seminar.
The intraday trading techniques is based on the following main considerations.
How to beat the market volatility with our unique intraday trading techniques? How to catch the price near the bottom? How to trade for maximum profit? How to protect your capital in stock market trading? How to manage stop loss? How to calculate exit targets in stock market trading?
In the intraday strategies, we are using two very rarely used but very powerful technical indicators, which are capable of weeding out the market volatility.
Heikin Ashi bars.
In the Intraday Trading Strategies Seminar/ webinar we explain you,
How to trade with Heikin Ashi bars? How to use Heikin Ashi in beating the market volatility? How to trade with Heikin Ashi intraday trading formula? How to use Heikin Ashi bars in calculating the exit targets? How to use Heikin Ashi bars to catch the price near the bottom? How to monitor a trade with Heikin Ashi bars? How to calculate stop loss using Heikin Ashi bars? How to calculate profit targets using the Heikin Ashi bars ?
If interested to learn the strategy and make money from stock market, register here for Seminar / Webinar.
Taking into consideration, your other commitments during the week days, we conduct the seminar / webinar on Sundays only as per following schedule,
Flexible – to be fixed as mutually comfortable.
We conduct two one to one sessions of two hours each in person or through webinars for making you understand the various technical indicators used in the strategy, their configurations and the interpretation of the same as a complete set up. We allow you two hours time any time as per your convenience for seeking clarifications..
We conduct these sessions with real charts for better understanding of the movements of various technical indicators used in the strategies, their configurations and the interpretation of the same as a complete set up.
Yes the fee is high in view of the uniqueness of the strategy but we allow you the option of payment in installments as follows.
Full onetime payment of Rs. 8999/-+18% GST.
Post dated cheques to reach us at least 3 days prior to the dates selected by you for seminar / webinar.
We provide you continuous support by way of helping and advising you trades based on this strategy for three months (Twelve trading weeks). We advise at least one trade at day end for trading the next day and in case, the success rate for all the trades advised & closed in three months period, is less than 70 (Seventy)%, we refund the full fee. Refund policy is applicable only in case of full down payment & other t&c apply.
This facility is extended to make you perfect in handling the strategy and you avail this facility even if you are not covered under refund policy. T&c apply.
What Is A Perfect Trading Strategy.
The success in stock market trading depends on number of factors but the most important of all is “A Perfect Trading Strategy”.
The basic requirements for “A Perfect Trading Strategy”, are that it ensures that.
The capital invested by you is safe The probability of your making money in the trades taken by you based on your system is more than 85% The strategy is taking care of the volatility in the market and doesn’t allow you to enter in very volatile market It doesn’t allow your emotions to play with your trades The intraday trading strategies formulae ensure that profit margin is good for every trade you take The exit targets for every trade you take are pre determined at the time of entry itself intraday trading techniques allows you entry in to the trade at the best possible price It ensures that the trade doesn’t remain open indefinitely.
If your strategy or the intraday trading software doesn’t have at least the above 8 parameters, the chances of your trades going against and ending up in losses are much higher.
Why over 90% of Day Traders Lose Money.
According to me, “STOCK MARKET TRADING is the EASIEST, HONEST, CONSISTENT and LEGITIMATE way of creating wealth, provided you know the art of trading on the stock markets”. For this, you need to be an expert or follow an expert.
But more than 90% of the day traders are losing money on account of following five main reasons.
The group consists of people, who have desire to make a quick money via stock markets but don’t have the time to learn the art of trading the stock markets for profits only. These are novice, untrained and unprofessional traders. For choosing the stocks to trade, they are guided by their friends with insider information stories or by the brokers, who have vested interest or they take the tips from the free tippers or trade with intraday trading formula which have not been properly back tested. They trade without learning and understanding the “Perfect Trading Strategy” , which besides giving right trigger at the right time, with inbuilt safeguards for taking care of emotional stability, greed by enforcing proper discipline and thus end up losing their capital in the stock market. They don’t understand that success doesn’t mean doing different things but it requires the same things to be done differently and the difference lies in their attitude of first learning, understanding, perfecting and then doing.
Pre requisites for trading based on our intraday trading strategy.
Must follow the basic success mantra, which says – “success doesn’t mean doing different things but it requires the same things to be done differently and the difference lies in the attitude of first learning, understanding, perfecting and then doing. Thus one must learn the strategy, understand its intricacies, be an expert by practicing at least for one month, by doing paper trading only. Once, the paper trades start giving the desired level of success rate, then only start real trading. Must understand and follow the entry, exit and stop loss rules without fail. Must not allow his / her emotions to play with the strategy rules. Must not invest more than 10% of the capital in any one trade. Must take only the perfect trades, matching all the requirements of the intraday trading strategies .
Heikin Ashi Candlesticks Chart.
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My 4 Best Intraday Trading Techniques.
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I don’t do much day trading anymore as it’s incredibly difficult to find profitable intraday trading techniques.
For one thing, it’s very hard to compete against all the algorithmic machines, banks, and high frequency traders.
For another, I prefer to trade mechanically and it’s almost impossible to come up with a profitable intraday trading system. Once commissions and slippage are taken care of, most intraday trading systems fail. And even if you do find an edge, it usually won’t last long.
Because of this, I believe it’s better to use mechanical trading systems on longer timeframes. For shorter timeframes, I believe traders are best advised to utilise both a mechanical and discretionary approach.
You can use a profitable or break-even trading system as a base, then use your experience and intuition to choose the best trades to take. I call this approach ‘teaming up with the robots‘.
Because, if you can combine the human mind with the computer, it gives the best chance of success. (And this is how humans were able to beat some of the most sophisticated computers playing chess).
This is the essence of how I trade and I maintain a number of short-term and long-term trading systems which I use to manage my portfolio. These strategies have been tested on historical data and work during different types of market conditions. As well as this, I keep a separate pot of capital available to capitalise on short-term, intraday opportunities when they arise.
What I never do anymore is watch the screen all day. I simply don’t enjoy watching price charts move for hours and find this an immense waste of time. Especially when there are so many more fulfilling things you could be doing with your life. That’s why I use these trading systems and I spend less than an hour each day updating and organising my trades.
Chart reading is a skill.
But don’t get me wrong, chart reading is a definite skill and if you want to be a good day trader, then you will definitely need to put in some serious screen time. It takes a lot of practice to become adept at reading charts and I believe the most important aspect of this is watching how the charts react to certain events. This is what I have had the most success with during my time, and in my mind, this is the key behind predicting future price moves.
But now let’s get into my four favourite intraday trading techniques. These are the ones I’ve had the most success with in the past:
Intraday Trading Techniques.
1 – Pivot levels.
Before I worked at a trading firm I had never heard of pivot points but these days I think most traders know about them.
Pivot levels go right back to the days of the trading floor and before the decimalisation of securities but they’re still used today by lots of intraday traders.
Because so many day traders and ‘locals’ look at pivot levels, they provide excellent levels of support and resistance in the market. Everyone is looking at them which means they are more likely to provide significant turning points. They have a simple calculation which is calculated using yesterday’s prices and this means that the levels constantly adapt to the market.
I’ve worked at two day trading firms now and in both companies, traders would look at pivots. Even if they didn’t directly trade off pivots, all the traders had an idea of where they were and what could happen when a pivot point was approaching.
How to use pivots intraday.
Always remember that the pivot is the most important level. When the market is above the pivot it’s a bullish signal and when the market is below the pivot, it’s bearish.
Accordingly, some traders will only buy when the market is above the pivot, and they will only take short trades when the market is below the pivot.
The other support and resistance levels are usually very good levels to take profits and manage the trade.
Occasionally, when the market is particularly overbought or oversold (look for a high RSI or momentum score) the levels can be used to take reversal trades.
Pivot level Example.
Take a look at this recent example in EURUSD. You can see that the market touches the key pivot levels regularly; pivot, R1, R2, S1 and S2 particularly. Traders know where these levels are so they often take their profits and make their trades around the same place.
*Charts courtesy of IG Index.
One strategy? Buy when the market pushes through the pivot with conviction then take half of your position off at R1, and try to sell the rest at R2. You can keep your stop below S1, and use the distance between S1 and your entry to calculate your position size (based on an attractive risk:reward ratio).
For example, if the difference between your entry and S1 is 30 pips, you could make your profit target 60 pips away, looking for a 2:1 risk:reward. You can use the levels to further fine tune your best exit points.
Also, keep an eye on momentum and other indicators like RSI, moving averages and Bollinger Bands. As you can see from the next chart, if RSI is overbought and the market is at a resistance level (like below) that’s going to be a good time to sell. Similarly, if RSI is oversold and the market is at a support level, that’s an extra reason to buy.
In another article, I look at pivot points in depth and I test these levels using historical data to see if a good trading system can be developed. Check it out when you have the time.
2 – Trading The News.
Another effective method for intraday trading is to trade news releases and economic reports. When a positive piece of news comes out you want to buy the market and when a negative piece of news comes out you want to sell.
Of course news trading isn’t as easy as it sounds, especially when you’re a retail trader and banks and hedge fund traders have access to all the quickest news feeds and inside sources. High frequency trading (HFT) algorithms, for example, are able to analyse and react to economic reports in a split second, making it impossible to compete.
The solution then is to stick only to the biggest news releases that actually move markets and to use your intuition to take the best risk:reward positions.
In some cases you may want to take a position before the news item comes out. That way you may be able to manage your trade and get in before the move. Again, it’s not easy but big profits can be made if you get on the right side of the trade, as proved by these traders who gained illegal access to economic statistics and made millions.
All about probabilities.
Predicting the outcome of economic releases or earnings reports might not be possible but it is possible to analyse price action and to make careful risk-based bets.
For example, if a strong, positive, piece of news comes out and the market struggles to go up as it should, that’s an important sign that should be taken account of.
In this instance, price action is suggesting that there are not enough buyers, even though the market has just had good news. That means resistance, and when the good news wears off, or when bad news comes out, the market could easily fall.
Being able to interpret price action in relation to events is absolutely key.
Just recently, US non-farm payrolls came out worse than expected but the market barely budged. Why? Because there simply wasn’t enough sellers to take the market lower. Markets take the line of least resistance, so when the bad news had been fully absorbed the market ended up going higher.
Which news releases to watch for intraday trading.
Plenty of news releases have no effect but the best news releases for futures traders are listed below:
– Non-farm payrolls (Average USD pip movement of 100-150 pips)
– Central bank announcements (interest rate decisions especially)
– US Trade balance (Average 70 pips)
The key with news trading is not to follow market sentiment; you need to work out what the market is expecting and if need be take a position against the crowd – if the probabilities are in your favor. For example, if the market is pricing in a 70% chance that the Fed will raise interest rates and you make it to be just a 25% chance, then going against the market offers a trade with great risk:reward.
News trading can be profitable but generally it requires quick thinking and a bit of preparation. Whatever it is, it’s always best to try it out for a while on a trading simulator.
If you are interested in more news and event-driven strategies you may want to check out Quantpedia which has a database of over 200 quantitative trading strategies for stocks, currencies and futures. There are strategies based on events as well as longer-term methods and this is one of my favourite resources for finding trading ideas.
3 – Scalping.
Scalping requires skill but is one of the most popular intraday trading techniques. The scalping method is to take lots of trades with short holding times, hoping to capture one or two pips here and there, building them up as you go.
Increasingly, traders use algorithms to calculate minute inefficiencies in the market and scalp a couple of ticks here and there, particularly in the forex markets. It goes without saying that scalping requires extremely tight spreads, a lot of practice and a lot of skill.
If you get involved in scalping it’s also a good idea to sign up with a rebate company as you can get back some of your commissions that way. But I would certainly stay away from any intraday trading system that claims to scalp the markets as it’s probably not true.
I’m not a huge fan of scalping as it’s generally a technique that requires a lot of screen time and discipline. It’s not uncommon to see scalpers build up a month worth of profits and wipe them all out on a couple of moments of weakness.
4 – Unforeseen events.
Often, short-term trades are no better than a coin flip and you would have just as much success going to the casino and betting on black at the roulette table.
However, another time that I will engage is if I see an opportunity come up that is too good to miss.
For example, maybe a stock has been sold too aggressively on a bad earnings number, or maybe there’s been a natural disaster, or a shock event. There are opportunities in these trades but they don’t come around that often.
They usually involve a great amount of uncertainty and emotion. So the key is usually to take a contrarian position (trade the other way to everybody else) then stay disciplined and try not to budge.
For example, the massive sell-off in USD/CHF in January 2015 when the Swiss national bank removed exchange controls against the euro and the franc rallied by historic proportions. This was an unforeseen event that caught many forex traders by surprise and sent some forex companies into liquidation.
But as you can see from the chart, there was also a massive over-reaction (due to forced selling) and taking the opposite side of the trade the very next day would have been the perfect time to buy. As is clear, markets often overreact and it often pays to go the other way.
As another example, remember the flash crash of 2010 when the S&P 500 dropped almost 10% in a matter of minutes. This would have taken out many traders but if you were alert and on the sidelines, you may have been able to jump in and make a quick profit when the market rallied off the seemingly oversold position.
Finally, here’s a chart of the Japanese Nikkei after the tragic earthquake and tsunami in 2011:
At the time, there was widespread panic, devastation, chaos, and everyone sold their Japanese holdings out of fear. It’s not nice to profit off of a natural disaster, but if you had said at the time “I think this is a bit overblown, I think Japan will be alright” you would have made money buying the dip. And in a way, you would have helped support the country in it’s time of need.
Looking back, the Nikkei did end up revisiting those lows but at the time of the disaster, there were fast profits available for intraday traders reacting to events.
Additional resources.
– You may also like my list of the best trading courses for beginners.
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6 opinions.
January 12, 2015.
September 14, 2017.
Appreciate for your great observations. I agree with Pivot points. Do you think that applies to all US traded assets mainly a few currency pairs and indices, perhaps key commodities?
Your valuable ideas are truly appreciated.
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JB Marwood.
Independent trader, analyst & writer.
JB Marwood is an independent trader and writer specialising in mechanical trading systems. He began his career trading the FTSE 100 and German Bund for a trading house in London and now works through his own company. He also writes for Seeking Alpha and other financial publications. Google+
Please remember financial trading is risky and you could incur significant loss of capital. Nothing on this site is to be construed as personalised investment advice. Please see the full disclaimer.
9 profitable intraday trading strategies (that you can use right now)
9 profitable intra-day forex trading strategies you can use right now!
People who succeed at day trading do three things very well:
They identify intra-day trading strategies that are tried, tested. They are 100% disciplined in executing those strategies. They stick to a strict money management regime.
Jump right to one you like, just click on it.
Momentum Reversal Trading Strategy.
Role Reversal Trading Strategy.
Heikin-Ashi Trading Strategy.
RSI Trading Strategy, 5 Systems + Back Test Results.
The Moving average crossover strategy.
The swing day trading strategy.
Candlestick patterns.
The Bollinger band squeeze strategy.
The narrow range strategy.
The 2 period RSI strategy.
Binary options trading strategy that generates 150% return.
Your probably thinking:
“How do I find intra-day trading strategies that actually work?”
And Are there some day trading rules that will help me to trade forex, commodities, stocks?
All you need to do is: set aside a few minutes of your day to tackle one of the following forex day trading strategies which I outline for you below.
The reality is this:
Few people are actually successfully day trading forex or other markets for a living,
That’s the uncomfortable fact of life that marketers don’t like to speak of! And those few people are most probably trading with other peoples money, like traders working for a bank or a hedge fund.
That means the stakes are not as high for them, as they are for a person trading their own capital.
That being said;
There are intra-day trading strategies beginners can use to maximise their chances to stay in the game for the long haul. These can be use in most markets like forex, commodities or stocks.
Because, ‘the long haul’ is where someone can turn their initial starting capital, into a retirement nest egg!
So, in this article I will show you everything you need to know to get started including:
Awesome forex day trading strategies that are used successfully every day. The main chart patterns associated with these forex trading strategies. Instructions for implementing the strategies.
Then I will tell you,
The simple truth is.
Learning to use and implement a basic intra-day trading strategies can cut your losses by 63% immediately and will increase your profitability chances in the long run.
MUST READ: Few Things About Risk Management Forex Trader Should Know.
So lets get down to business.
1.Momentum Reversal Trading Strategy.
#1 The strategy seeks trading opportunities through the combination of fundamental and technical analysis.
#2 It requires a trader to analyse the fundamental aspects of the traded currency to establish mid to long term trend first. Then it uses the price momentum, support and a resistance zones to spot market reversals.
#3 The strategy allows to enter the market at low risk and provide a large profit potential through advanced money management.
#4 All trades are planned in advance to give a trader enough time to enter the market every time. Most trades are placed as pending limit orders often executed during London’s session.
#5 The strategy works well on all major US Dollar crosses. It generates between 1-5 signals per month. All trades are entered and held for anything up to several weeks depending on the price action and the market fundamentals.
#6 The strategy has been traded in live markets for the last 15 months and its performance is clearly documented in the performance section.
The strategy uses a few indicators only:
Stochastic Oscillator ( multi-time frame) Support and resistance Fibonacci retracements.
After establishing your bias and long term trend through Commitments of Traders report, it’s time to switch to daily charts and look for a price reversal phase.
To define the price reversal you need to analyse the price on daily charts first and answer 3 simple questions:
Has the market been clearly falling or rallying recently? Is the weekly and daily stochastic showing overbought or oversold levels on daily charts? Is the price trading around major support or resistance zones?
In the USDJPY chart above you can see four examples of the price being in a reversal phase.
Setup #1 on the chart.
Weekly and daily stochastics are above 70 zone and the market has been in a substantial rally prior to that. A trader should be marking this zone as bearish and switching to intraday charts to seek a bearish reversal price pattern.
Similar to setup #1, price, after a few days of rally, it came back up to an overbought stochastics zone ( above 70) and is now trading around a major resistance zone. A trader will be marking this area as bearish and switching to intraday charts to seek a bearish reversal price pattern.
Once again, the momentum is now overbought and the price is forming a clear resistance. A trader will be marking this area as bearish and switching to intraday charts to seek a bearish reversal pattern.
The price declined and reached a support at 117 area. The momentum is now oversold. A trader will be marking this area as bullish and switching to intraday charts to seek a bullish reversal price pattern.
The above setups will be attempted only in the direction of the trend established by the trader during a fundamental analysis. The fundamentals were pointing to the downside in USDJPY. The first 3 setups would be considered and the 4th would be either ignored or entered as a counter trend position with a lower lot size.
Fore more information CLICK HERE.
2:The Moving average crossover strategy.
Moving average indicators are standard within all trading platforms, the indicators can be set to the criteria that you prefer.
For this simple day trading strategy we need three moving average lines,
The 20 period line is our fast moving average, the 60 period is our slow moving average and the 100 period line is the trend indicator.
This day trading strategy generates a BUY signal when the fast moving average ( or MA) crosses up over the slower moving average.
And a SELL signal is generated when the fast moving average crosses below the slow MA.
So you open a position when the MA lines cross in a one direction and you close the position when they cross back the opposite way.
How do you know if the price is beginning to trend?
Well, If the price bars stay consistently above or below the 100 period line then you know a strong price trend is in force and the trade should be left to run.
The settings above can be altered to shorter periods but it will generate more false signals and may be more of a hindrance than a help.
The settings I suggested will generate signals that will allow you to follow a trend if one begins without short price fluctuations violating the signal.
On the chart above I have circled in green four separate signals that this moving average crossover system has generated on the EURUSD daily chart over the last six months.
On each of those occasions the system made 600, 200, 200 and 100 points respectively.
I have also shown in red where this trading technique has generated false signals, these periods where price is ranging rather than trending are when a signal will most likely turn out to be false.
The first false signal in the above example broke even, the next example lost 35 points.
The above chart shows the first positive signal in detail, the fast MA crossed quickly down over the slow MA and the trend MA, generating the signal.
Notice how the price moved quickly away from the trend MA and stayed below it signifying a strong trend.
The second false signal is shown above in detail, the signal was generated when the fast MA moved above the slow MA, only to reverse quickly and signal to close the position.
Although the system is not correct all the time, the above example was correct 6/12 or 50% of the time.
We can immediately see how much more controlled and decisive trading becomes when a trading technique is used. There are no wild emotional rationalisation, every trade is based on a calculated reason.
3.Heikin-Ashi Trading Strategy.
Heikin-Ashi chart looks like the candlestick chart but the method of calculation and plotting of the candles on the Heikin-Ashi chart is different from the candlestick chart. This is one of my favourite forex strategies out there.
In candlestick charts, each candlestick shows four different numbers: Open, Close, High and Low price. Heikin-Ashi candles are different and each candle is calculated and plotted using some information from the previous candle:
Close price: Heikin-Ashi candle is the average of open, close, high and low price. Open price: Heikin-Ashi candle is the average of the open and close of the previous candle. High price: the high price in a Heikin-Ashi candle is chosen from one of the high, open and close price of which has the highest value. Low price: the high price in a Heikin-Ashi candle is chosen from one of the high, open and close price of which has the lowest value.
Heikin-Ashi candles are related to each other because the close and open price of each candle should be calculated using the previous candle close and open price and also the high and low price of each candle is affected by the previous candle.
Heikin-Ashi chart is slower than a candlestick chart and its signals are delayed (like when we use moving averages on our chart and trade according to them).
This could be an advantage in many cases of volatile price action.
This forex day trading strategy is very popular among traders for that particular reason.
It’s also very easy to recognise as trader needs to wait for the daily candle to close. Once new candle is populated, the previous one doesn’t re-paint.
You can access Heikin-Ashi indicator on every charting tool these days.
Lets see how a Heikin-Ashi chart looks like:
On the chart above; bullish candles are marked in green and bearish candles are marked in red.
The very simple strategy using Heikin-Ashi proven to be very powerful in back test and live trading.
The strategy combines Heikin-Ashi reversal pattern with one of the popular momentum indicators.
My favourite would be a simple Stochastic Oscillator with settings (14,7,3). The reversal pattern is valid if two of the candles (bearish or bullish) are fully completed on daily charts as per GBPJPY screenshot below.
Once the price prints two red consecutive candles after a series of green candles, the uptrend is exhausted and the reversal is likely. SHORT positions should be considered.
If the price prints two consecutive green candles, after a series of red candles, the downtrend is exhausted and the reversal is likely. LONG positions should be considered.
The raw candle formation is not enough to make this day trading strategy valuable. Trader needs other filters to weed out false signals and improve the performance.
MOMENTUM FILTER (Stochastic Oscillator 14,7,3)
We recommend to use a simple Stochastic Oscillator with settings 14,7,3.
I strongly advise you read Stochastic Oscillator guide first.
Once applied, it will show the overbought/oversold area and improve the probability of success.
Enter long trade after two consecutive RED candles are completed and the Stochastic is above 70 mark.
Enter short trade after two consecutive GREEN candles are completed and the Stochastic is below 30 mark.
To further improve the performance of this awesome day trading strategy, other filers might be used. I would recommend to place stop orders once the setup is in place.
In the long setup showed in the chart below, the trader would place a long stop order few pips above the high o the second Heinkin-Ashi reversal candle.
The same would apply to short setups, trader would place a sell stop order few pips below the low of the second reversal candle.
Accelerator Oscillator filter.
As another tool you could use the standard Accellarator Oscillator. This is pretty good indicator for daily charts. It re-paints sometimes, but mostly it tends to stay the same once printed. Every bar is populated at midnight. How to use it? After Heikin-Ashi candles are printed, confirm the reversal with Accellarator Oscillator.
For Long trades: If two consecutive GREEN candles are printed, wait for the AC to print the green bar above the 0 line on the daily charts.
For Short trades; If two consecutive RED candles are printed, wait for the AC to print the red bar above the 0 line on the daily charts.
The reversal pattern is valid if two of the candles (bearish or bullish) are fully completed on daily charts as per GBPJPY screenshot below. Don’t enter the market straight after a volatile price swing to one direction. It important to consider fundamental news in the market. I would advise to avoid days like:
Move position to break even after 50 pips in profit. Move stop loss at the major local lows and highs or if the opposite signal is generated. Let your winners run. Stop loss 100 pips flat or use local technical levels to set stop losses. Every trader is advised to implement their own money management rules.
Strategy examples and screenshots.
Strategy doesn’t generate much setups, but when it does, they are usually important market tops or bottoms. See some sample trade setups before and after.
To get the ready MT4 templates for the setups below please CLICK HERE TO DOWNLOAD.
You can then unzip it and place them in your MT4 and have the below charts ready.
Date: 22 May 2013.
Date: 21 June 2013.
Date: 31 October 2013.
4. The swing forex day trading strategy.
Swing day trading strategy is all about vigilance!
The trader needs to be on guard to notice a correction in a trend and then be ready to catch the ‘swing’ out of the correction and back into the trend.
“And what’s a correction?” I hear you ask.
Simple. Corrections involve overlap of price bars or candles, lots and lots of overlap!
A trending price makes progress quickly, corrections don’t.
Lets look at some charts for an example.
Take the above chart, EURUSD at 240 minute candles, within the green circle we have 26 candles where the price stayed within a 100 point range.
As I have marked with the blue lines the price even contracted to a daily move of only 20 points!
A swing trader would be on HIGH ALERT here! Contracting price, lots and lots of overlap.
This presented a very high probability that the price was going to continue in the trend that had started the previous week.
The trade would involve selling when the first candle moved below the contracting range of the previous few candles, A stop could be placed at the most recent minor swing high. ( Orange Arrows )
Another example of a swing trade is shown in the chart below.
Again we are working on the EURUSD 240 minute chart.
In green we can see a correction to the downside, notice the slowing downside momentum?
Notice all the overlapping price candles?
The entry point in this trade would be a little harder to execute, although the principle is the same.
We want to wait for the price to show a sign of reversal, at the end of the correction, two separate candles moved above the upper blue line.
This showed that the price was now gearing up for reversal.
A trader would buy the open of the following candle and place a stop at the lowest point of the correction.
The risk here was about 30 points, the gain was about 600 if you managed to ride it all the way up!
Swing trading is a little more nuanced than the crossover technique, but still has plenty to offer in terms of money management and trade entry signals.
5.Candlestick patterns.
MUST READ: Candlestick patterns – 21 easy patterns ( and what they mean )
Engulfing patterns happen when the real body of a price candle covers or engulfs the real body of one or more of the preceding candles.
The more candles that the engulfing candle covers the more powerful the following move will likely be.
There are two types. Bullish and bearish.
The bullish engulfing pattern signals a bullish rise ahead and the opposite is true for the bearish engulfing candle.
In the above chart I have circled the bullish engulfing candles which led to price rises immediately after.
Well, the bullish engulfing pattern is a precursor to a large upward move.
So, when you see an the engulfing candle taking shape you should wait for the following candle and then open your position.
Your stop should be placed at the low of the engulfing candle.
The bearish engulfing pattern signals a bearish price decline ahead.
In the above chart I have circled the bearish engulfing candles which led to price declines immediately after.
Again, the more candles that the engulfing candle covers the more powerful the following move will likely be.
It is the same principle as the bullish pattern, just the flip side of the coin!
The bearish engulfing pattern is also a precursor to a large decline.
So, when you see an the engulfing candle taking shape you should wait for the following candle and then open your position.
Your stop should be placed at the high of the engulfing candle.
The ‘long shadow refers to the length of the line from the closing price on a candle to the high or low price of that particular candle.
The ‘shadow’ should be at least twice the length of the real body of the candle.
These shadows tend to occur at turning points.
And they tend to lead to large price moves!
As with the rest of the candle stick patterns, we wait for the long shadow candle to close and we place our trade at the open of the next candle.
Your stop should again be placed at the extreme high or low of the shadow candle and trailed to follow the trend.
A candle forms a ‘hammer’ when the real body of the candle sits at one end of the candle leaving a head and handle!
Again these candles tend to form at price reversals giving a strong signal for traders.
Its the same trick!
We wait for the long hammer candle to close and we place our trade at the open of the next candle.
Your stop should again be placed at the extreme high or low of the hammer candle.
and again trailed to follow the trend.
6.Support and Resistance.
Role Reversal Day Trading Strategy.
To start I needs to assume that you know what is the support and Resistance in Forex trading. If not see few simple definitions and examples below.
Support and Resistance are psychological levels which price has difficulties to break. Many reversals of trend will occur on these levels.
The harder for price to cross a certain level, the stronger it is and the profitability of our trades will increase. The most basic form of Support and Resistance is horizontal. Many traders watch those levels on every day basis and many orders are often accumulated around support or resistance areas.
It important to mention, support and resistance is NOT an exact price but rather a ZONE . Many novice traders treat the support and resistance as an exact price, which they are not. Trader must think of support and resistance as a ZONE or AREA.
These levels are probably the most important concepts in technical analysis. They are a core of most professional day trading strategies out there.
Let me introduce you to the “Role Reversal”. Let’s see how can you use it in your every day’s trading.
Role Reversal is a simple and powerful idea of support becoming a resistance (in the downtrend) and the resistance becoming a support (in the uptrend).
Let see how this plays out in the uptrend.
Once the price is making higher highs and higher lows we call it uptrend. Technical trader must assume the price is going to go up forever and only long trades should be considered. Once the uptrend is defined, the lowest strategy to trade is – buy on pullbacks.
As per definition of an uptrend, the price punching through the resistance and pullback before it makes another higher high.
“Role reversal” concept comes handy for bulls in this scenario.
Once the resistance is broken to the upside, it becomes a new support level.
Resistance changes its role to support, hence the name “Role Reversal”.
After making a new higher high, the price in uptrend must correct. It is likely to correct to the new support level. This can present an excellent buying opportunity for bulls.
We don’t know where exactly price will resume an uptrend. Risk management must be applied.
Trader must remember to treat support and resistance levels as ZONES rather than exact price.
The same principle applies to downtrends.
If the market is in downtrend, the price will punch through supports making new lower lows. The broken support becomes new resistance and offers opportunity for short positions.
Sometimes the price will pull back a bit further than just the former support or resistance. It might retrace toward other important technical levels.
I like to combine pure price action with other major, widely used leading indicators. My favourite would be: Pivot Points and Fibonacci retracements. After many years of using these tools, I can say with confidence, they are pretty accurate.
The popularity of these tools makes them so responsive.
You could also establish few levels of entries for example:
If you are looking to buy the market after the price made fresh high, you would be waiting for the price to retrace towards role reversal, Fibonacci Level or moving average. As you are pretty confident, the price is moving higher, you don’t know how far the price will pullback.
If it’s an aggressive day, the price can only come back to 20MA and shoot for new high again. Another day, the price can dip as far as 38% Fib retracement.
You can divide you position into 3 equal parts and set limit orders based on the logic above:
1/3 at 20MA, 1/3 at role reversal, 1/3 at 50% Fib retracement. This way you lower the risk and increase the odds of getting filled.
7. The Bollinger band squeeze strategy.
Bollinger bands are a measurement of the volatility of price above and below the simple moving average.
John Bollinger noted that periods of low volatility are followed by periods of high volatility, so when we notice the Bollinger bands ‘squeeze’ in towards each other, we can infer that a significant price movement may be on the cards soon.
So, the Bollinger band squeeze trading strategy aims to take advantage of price movements after periods of low volatility.
I urge you to read: Bollinger bands ( the COMPLETE how-to guide! )
The above chart is the EURUSD 240 minute chart.
The Bollinger band indicator should be set to 20 periods and 2 standard deviations and the Bollinger band width indicator should be switched on.
When trading using this strategy, we are looking for contraction in the bands along with periods when the Bollinger band width is approaching 0.0100 or about 100 points.
When all the conditions are in place, it signifies a significant price move is ahead as indicated within the green circles above.
A BUY signal is generated when a full candle completes above the simple moving average line.
A SELL signal is generated when a full candle completes below the simple moving average line.
Stops should be placed at the high or low of the preceding candle, or, to allow for a maximum loss of 3% of your trading capital, whichever is the smaller.
8. The Narrow Range Strategy.
The narrow range strategy is a very short term trading strategy. The strategy is similar to the Bollinger band strategy in that it aims to profit from a change in volatility from low to high.
It is based on identifying the candle of the narrowest range of the past 4 or 7 days.
A suitable candle would consist of a ‘ Chubby’ look with an opening and closing prices close to the days high and low as shown in the chart below.
Quite often you will find two or more narrow candles together this only serves to contract the volatility and will often lead to an even larger breakout of the range to come.
Once a narrow candle is identified we can be reasonably sure that a volatility spike will be close at hand.
Your stop is placed at the low or high of the Narrow candle and trailed to suit.
9. The 2 period RSI strategy.
This strategy is pretty simple really.
In general this is a very aggressive short term strategy as you can see by the amount of signals that are generated in the chart shown.
As such this aggressiveness will be caught out by a ranging market and may lead to several losing trades in a row.
The aggressive nature of the strategy should be matched with an equally rigorous stop loss regime.
The merits of the system shine when the market begins to trend in a particular direction. In this case Extra BUY or SELL triggers can be used to add to positions.
Those positions should be closed when an opposing signal is generated.
As in the chart above, when the RSI moved above 90 the first BUY signal was generated and the first position was opened, the RSI then triggered another BUY signal and another similar position was opened.
Both trades were then closed when the RSI moved back below 10.
In the End!
Day trading, and trading in general is not a past-time! Trading is not something that you dip your toes into now and again.
Day trading is hard work, time consuming and frustrating at the best of times! It is no wonder that over 93% of people that try it, lose money and give up!
“the excuse doesn’t matter; the cold hard number is that only about 4.5% of traders who start day trading will end up being able to make something of it.”
BUT, by recognizing the difficulty and learning some basic trading strategies you can avoid the pitfalls that most new traders fall into!
The honest truth of the matter is this, most new traders get involved because they see huge profits straight ahead by simply clicking BUY .
Believing they will wake up the next morning a newly minted millionaire! What actually happens goes more like this.
Your friend has just opened a trading account, he claims to have made a hundred dollars in ten minutes, he just sold the EURUSD because the U. S economy is so great right now, it said so on TV!
So you go home, lodge a $1000 into a trading account, SELL the EURUSD at $5/ point.
You wake up the next day and the market has moved against you by 200 points, and your account is wiped out!
Lets look at the facts. There are three main reasons behind the high failure rate of new traders, and you can avoid them easily!
As in the story I told above, trading based on hearsay or some popular narrative will lead you to almost certain doom!
The value of using a tried and tested trading technique is immense, and will save you from loosing your hard earned savings.
By using a day trading strategy, you remove the emotional element from the trading decision.
A trading strategy requires a number of elements to be in place before trading.
So, when those elements are in place, you place the trade.
It is a binary decision rather than an emotional decision. All other actions are off the table, by following a trading technique you avoid the cardinal sin of trading, that is, over trading.
So often new traders place a trade without even placing a stop loss position! An error which can lead to catastrophic losses.
Money management can be as simple as using the 3 / 1000 rule.
That is: never ever ever ever risk more than 3% of your capital on any trade.
And never risk more than 1000 th (or as close to) of your capital per point.
Now, I’ve given you the tools, so get to it, and start trading profitably!
Please let me know, which intraday trading strategy is your favourite in the comment section below. I will expand of the most popular ones.
Author: Roman Sadowski.
I truly believe the journey to profitability and freedom is a function of hard work, commitment, persistence and boring routines.
There is no magic to trading. I believe in making calm rational decisions what, when and how to trade based on a decade of intense learning.
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Very good and valuable information thanks for sharing.
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Intraday Trading Techniques and Strategies to earn Good Profit in Stock Market.
Now, it’s very easy to maximize the daily profit using Intraday Trading Techniques / Strategies in NSE India. Stock market fluctuations every time gives trader surprises and therefore trader should be ready to accept and challenge the unexpected. With the proper Intraday Trading Tricks and knowledge trader can have road to intraday trading success in the long run. Like the name suggests, intraday trading is a type of trading when the shares are bought and sold on the same day. The risk associated with Intraday trading is very high then other trading. But, if trader plays safely with right trading rules, he/ she can have success in Intraday.
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BASIC CANDLESTICK KNOW HOW :
Green Candle and Red candle.
There are four price in candle.
If Open to close is high it is a green candle.
If open to close Below it is a Red candle.
Intraday Trading Techniques Candlestick.
Learn Intraday Trading Formula Of Break Out :
If Close is Above the previous Candle High. It call as a Closing Basis Break Out. This Break Out is Useful for BUY. If Close is Below the previous candle Low It call as a Closing Basis Break Out. This Break Out is Useful for Sell Short.
Intraday Trading Techniques Rules :
– Useful for Nifty & Bank nifty ( Indian Stock Market ) – Accuracy more than 75 % to 80 % in Intraday (Day Trading) – Input 5 min chart (Need min to min chart) – Focus on day first candle High and Low (DFC) – Chance to earn every month minimum 20,000 Rs. (Fix Income In Intraday Trading)
Intraday Trading Break Out Strategy :
Sell Trade Success Techniques.
When the day first candle (DFC) gives closing below the low, trader should punch the sell trade. Trader should focus on the close & close below low. Trader can get closing on any no of candle i. e 3, 4 or 5 candle. The next candle to closing candle will be qualified candle to go for sell side . Day first candle high and low difference will be first target for the trader to book profit. DFC high be where you should put stop loss you need to look for second target at 3:25 pm.
Buy Trade Success Intraday Techniques.
When the day first candle (DFC) gives closing above the high, trader should punch the buy trade. Trader should focus on the close & close above High. Trader can get closing on any no of candle i. e 3, 4 or 5 candles. The next candle to closing candle will be qualified candle to go for buy side . Day first candle high and low difference will be first target for the trader to book profit. DFC low be where you should put stop loss You need to look for second target at 3:25 pm.
Gap Up or Down Open – Good News Or Bad News ?
1. Previous Day High Above Open = Out Side Gap Up.
2. Previous Day Low Below Open = Out Side Gap Down.
INTRADAY BREAKOUT STRATEGY WITH OUT GAP-UP OPEN:
Intraday Trading Techniques – Buy.
If the market open at price higher then previous day high its said to be Out Side Gap Up Open. If the DFC candle (9:15 Am) with gap up open price gives closing above high, go for buy trade. Here the close above high is on 4 candle. 5 candle is qualified candle to punch buy trade.
BREAKOUT STRATEGY WITH OUT GAP – DOWN OPEN:
Intraday Trading Techniques – Sell.
If the DFC candle (9:15 AM) opens below previous day low, it is said to be Candle with Gap down open price. If The Candle with Gap down price gives closing below the low, go for sell trade. Here the close below low is on 2 candle. 3 candle is qualified candle to punch sell trade.
More Latest Chart Banknifty :
Lastly , We at Nifty Trading Academy don’t use simple intraday techniques because they are good. We use them because they work.
Our trading methods are based on simple rules which anyone can easily adopt. They help us to act in time with perfect information and give best results. Our trading methods are tested and confirm that are accurate and profitable.
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Warning : This Article Strategy are Copyrighted by NTA.
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