Day trading strategy for sudden spike

[Krishan86]

Hello Traders,
Very often we see sudden spikes (increase of price by 2-4%) in stocks, irrespective of how nifty is trading. Is there any way we can make profit from that spike ?
I tried shorting it, but it works 50-50%, so i ended up in no profit, no loss. Is there any technical indicator that i can use ?

 

[Striker]

Intuition and luck are the only indicators for such random trades.

 

[James Martin]

It may go up and up for days together if the news is very much in favour of the company in the short term as well as in the long term .

 

[sangram1705]

Hello Traders,
Very often we see sudden spikes (increase of price by 2-4%) in stocks, irrespective of how nifty is trading. Is there any way we can make profit from that spike ?
I tried shorting it, but it works 50-50%, so i ended up in no profit, no loss. Is there any technical indicator that i can use ?

yes there is a method.(not an indicator). try at your own risk as it is not an easy affair.
step 1) identify the timing when heavy volatility is expected.
step 2) just before that timing buy current month future of X qty
step 3) sell near month future of x qty.
step 4) place sell stop & buy stop of both the positions & equal value.
step 5) wait for one stop to be hit & another pos to get into profit.
step 6) quickly book if you are in profit or even if it is in loss.

chances are there that bot stops may hit. Key to success is speed of execution, proper timing & identifying how much stoploss works in which instrument.

Highest risk is if there is a sudden gap up or down.

So you decide if you can manage such type of trading. That is upto you. But you need to have very highest degree of skill to do this(especially if you intend to trade commodities)

 

[alroyraj]

Hello Traders,
Very often we see sudden spikes (increase of price by 2-4%) in stocks, irrespective of how nifty is trading. Is there any way we can make profit from that spike ?
I tried shorting it, but it works 50-50%, so i ended up in no profit, no loss. Is there any technical indicator that i can use ?

In case of stocks they surest way is to keep a track on the volumes.
On bse we can track the stock having a spurt in volumes usually around events etc but the volumes plus delivery levels give a good idea.
For eg for tomorrow see capital first volumes have increased 7-8 times and result announced aftermarket hours today.
It will possibly break year high but still you need to get a good entry tomo.
Another example is la opals glass similar setup.

 

[Krishan86]

Thank you all for ur time. Just to clarify, i am talking about day trading, in a candle stick of 5 mins. Almost every day irrespective of how the market is, we easily get 10-15 stocks which spikes. I tried shorting it, but sometimes it works other times it does not. I am trying with various combinations of TI, but not with a very great accuracy. Any new ideas like "Time of day", "Volume" is appreciated.

Thanks

 

[dhilsath]

Dear traders
any one know abt ideal advisory intraday strategy , is it usefull, if experienced plz explain

 

[akashkad]

Thank you all for ur time. Just to clarify, i am talking about day trading, in a candle stick of 5 mins. Almost every day irrespective of how the market is, we easily get 10-15 stocks which spikes. I tried shorting it, but sometimes it works other times it does not. I am trying with various combinations of TI, but not with a very great accuracy. Any new ideas like "Time of day", "Volume" is appreciated.

Thanks

I have a software which give sound alert whenever any script up or down by given percentage in given time... that is if u set 1% in 5 min.. then software will list out that script in real time..

 

[KRMANOJGUPTA]

Sir,
i also faced this problem but now i am rarely facing this problem to stay away this problem always trade when bollinger bands are expanding, never trade in squeeze area of bollinger band you can try some better result may be expected,