Intraday trading strategies (formulae)
- Thread starter intradaysure
- Start date
Re: Intraday trading strategies(formulae)
Great article on intraday strategy.
When we wait for intradaySuRe to reply, let me put slightly different perspective to analysing this/anyother strategy. (I am not trying to say that this is a bad strategy).
1) As mentioned, historical data has shown following results.
"Actual LOW is lower than S1.......... 43 % times.
Actual HIGH is higher than R1......... 43 % times. "
That means, on 57% of the time, Low of prev day / and high of prev day is broken.
As the note says - that your buy price will be around S1 and Sell price around R1 so probabilities are against you - 57% of the time.
2) This strategy will fail on the Reversal day - the day when trend is reversed.
3) Profit target assumed in the stratgey is equal @sell price for Buy txn. That means it is assumed that today's range (=High-low) will be atleast equal to yesterdays range.
4) If this is Broker's strategy, then they might push the price littlebit beyond the calculated levels and get people stopped out or buy it a bit early so that trend is reversed before it reaches the calculated level.
Bottomline - Before trading any strategy, also think about your stoploss levels and put your judgement to address point (4).
Happy Trading.
Great article on intraday strategy.
When we wait for intradaySuRe to reply, let me put slightly different perspective to analysing this/anyother strategy. (I am not trying to say that this is a bad strategy).
1) As mentioned, historical data has shown following results.
"Actual LOW is lower than S1.......... 43 % times.
Actual HIGH is higher than R1......... 43 % times. "
That means, on 57% of the time, Low of prev day / and high of prev day is broken.
As the note says - that your buy price will be around S1 and Sell price around R1 so probabilities are against you - 57% of the time.
2) This strategy will fail on the Reversal day - the day when trend is reversed.
3) Profit target assumed in the stratgey is equal @sell price for Buy txn. That means it is assumed that today's range (=High-low) will be atleast equal to yesterdays range.
4) If this is Broker's strategy, then they might push the price littlebit beyond the calculated levels and get people stopped out or buy it a bit early so that trend is reversed before it reaches the calculated level.
Bottomline - Before trading any strategy, also think about your stoploss levels and put your judgement to address point (4).
Happy Trading.
Re: Intraday trading strategies(formulae)
the strategy suggests .....biasedness for action........not for money earning.
.........
do it suits u........any predetermined.........s/r dont work .........what way orderflow comes.....and momentum has more validity.
......
trade vetaren can use it by his skill............but its a tool for call giver!!!!!!!!
the strategy suggests .....biasedness for action........not for money earning.
.........
do it suits u........any predetermined.........s/r dont work .........what way orderflow comes.....and momentum has more validity.
......
trade vetaren can use it by his skill............but its a tool for call giver!!!!!!!!
Thankyou for the responses.
Dear friends I suggest please read every thing mentioned in the post. All strategies are based on intraday time frames & previous day movements of share price. Remember one thing all good & and bad news are reflected in price movements & trading psychology.
These strategies do not really require any software, what they require is a little study of price movements of 3 days. Based on the previous movements one should be able to predict(understand) the probable movements that may happen on trade day.
Please paper-trade for few days to get the feel of it.
I am clarifying certain things as desired.
1)Suppose TRADE date is 27 june. So you should have figures of 26, 25 & 24 june ie.3 days.
{open,high,low,close & volume of 26 june} & {close of 25 june(pr.close)} will give figures of probable movements for trade day ie. 27 june.
For morning 30 min. strategy no need of stop loss as you have to immediately cut your position if it is not favouring you. Remember in intraday if you have a mentality that every position you take will give profits- PLEASE DO NOT DO INTRADAY TRADING. Because first you will have to work on your mentality(trading psychology). Sorry to be harsh, but truth is always harsh.
2) The 10 yr study data mentioned is to guide you in taking your decisions for entry & exit for both BUY or SHORT SELL positions. for example
Actual HIGH is higher than R3 3 % times.
INTERPRETATION- a)If you have bought at base, R1,R2, it is high time you exit your long position of intraday(or at least keep a trailing Stop-loss).
b) It is highly risky to enter with a buy position above R3
C) It may be safe to take a short-sell postion above R3 if the share is showing some reversal with SL above the reversal price. Immediately bring down your trailing SL in profitable area if you have got the winning position.
Similarly you can now interpret other findings of the study.
PLEASE REMEMBER GREED & FEAR ARE THE GREATEST ENEMIES OF DAY TRADERS.
IT IS NOT MONEY BUT THE SKILL & TRADING PSYCHOLOGY YOU HAVE TO ACQUIRE - because money will follow once you master the two.
bye.........as and when i get time we will discuss other strategies.
Dear friends I suggest please read every thing mentioned in the post. All strategies are based on intraday time frames & previous day movements of share price. Remember one thing all good & and bad news are reflected in price movements & trading psychology.
These strategies do not really require any software, what they require is a little study of price movements of 3 days. Based on the previous movements one should be able to predict(understand) the probable movements that may happen on trade day.
Please paper-trade for few days to get the feel of it.
I am clarifying certain things as desired.
1)Suppose TRADE date is 27 june. So you should have figures of 26, 25 & 24 june ie.3 days.
{open,high,low,close & volume of 26 june} & {close of 25 june(pr.close)} will give figures of probable movements for trade day ie. 27 june.
For morning 30 min. strategy no need of stop loss as you have to immediately cut your position if it is not favouring you. Remember in intraday if you have a mentality that every position you take will give profits- PLEASE DO NOT DO INTRADAY TRADING. Because first you will have to work on your mentality(trading psychology). Sorry to be harsh, but truth is always harsh.
2) The 10 yr study data mentioned is to guide you in taking your decisions for entry & exit for both BUY or SHORT SELL positions. for example
Actual HIGH is higher than R3 3 % times.
INTERPRETATION- a)If you have bought at base, R1,R2, it is high time you exit your long position of intraday(or at least keep a trailing Stop-loss).
b) It is highly risky to enter with a buy position above R3
C) It may be safe to take a short-sell postion above R3 if the share is showing some reversal with SL above the reversal price. Immediately bring down your trailing SL in profitable area if you have got the winning position.
Similarly you can now interpret other findings of the study.
PLEASE REMEMBER GREED & FEAR ARE THE GREATEST ENEMIES OF DAY TRADERS.
IT IS NOT MONEY BUT THE SKILL & TRADING PSYCHOLOGY YOU HAVE TO ACQUIRE - because money will follow once you master the two.
bye.........as and when i get time we will discuss other strategies.
GAP OPENINGS simply means- Suppose if the sensex has closed at a particular level and on the Trade day it opens 200 to 500+ points ie. called GAP-UP. Similarly if it opens 200 to 500+ points down than pr. close it is called GAP-DOWN opening. of MARKETS.
This is applicable to shares also. Even in normal market you will find many shares having GAP-UP or GAP-DOWN openings.
Considering these openings you have to take intraday positions accordingly.
We will discuss the strategies for these later as time permits. And your understanding of my previous posts.
This is applicable to shares also. Even in normal market you will find many shares having GAP-UP or GAP-DOWN openings.
Considering these openings you have to take intraday positions accordingly.
We will discuss the strategies for these later as time permits. And your understanding of my previous posts.
* Some more morning strategies :.
A ) SHORT SELL :- ( sell first & buy later )
OPEN & HIGH IS SAME.
Sell just below HIGH price if it is not breaking the high price for 3 minutes.
Example : If O-H is 110 sell @ 109 with a SL ( stop loss ) just above HIGH.
Best results are observed if :-
a) Market is Bearish ( weak )
b) O-H rate is near or above SELL PRICE i.e.: ( pr. Close + BS )
c) O-H rate is @ or near R1, R2, R3
d) Share price has gained 10-30% in previous 1-3 trade days.
e) Weak share but O-H rate is @ or near R1, R2, R3
B ) BUYING :- ( buy first & sell later )
1. OPEN & LOW IS SAME..
Buy just above LOW price if it is not breaking the low price for 3 minutes. Example : If O-L is 100 buy @ 101 with SL ( stop loss ) just below LOW.
Best results are observed if :-
a) Market is Bullish ( strong )
b) Pr. Close is Strong ( i.e.: it is a strong share )
c) O-L is near or below Pr. Close
d) O-L rate is near or below BUY price or @ S1, S2, S3
2. STRONG SHARE :- ( i.e.: strong close pr. day )
BUY if :-..
a) OPEN is @ BUY price.
b) OPEN is same as pr. Close.
c) OPEN & LOW is same, as discussed above.
d) OPEN is just above pr. Close but far below SELL price.
Best results if market is bullish. Keep the target of getting out @ SELL price, or @ R1, R2, R3 if it is showing strength & volume is more than pr. Day.
PLEASE REMEMBER : 1) AS A INTRADAY TRADER YOU SHOULD NOT FIGHT WITH THE MARKET. BE READY TO ACCEPT A SMALL DEFEAT RATHER THAN MAKING IT A BIG FAILURE.
2) IT IS NOT A EASY GAME. UNDERSTAND IT . ALWAYS ANALISE SUCCESS & FAILURE FOR EVERY POSITION YOU TAKE.
3) Select a strategy. Do the homework before trading for that strategy only. Don't mix other strategy with it. PAPER-TRADE.for few days sincerely(the more time you take the better)......than start with small qty. for a period of say a month(do not overtrade your limits).......once your success for your strategy is 70-80%.........than increase qty in steps again. .....DO NOT OVER RISK.......YOU CANNOT CHANGE THE MARKET ....ALL YOU CAN CHANGE IS YOURSELF......TOWARDS SUCCESS.
4) Once you get the feel of price movements , how and why they happen....then YOU may take additional guidance of any softwares (NOT MANDATORY)
5) YOU CAN MAKE MONEY BY STICKING TO ONE STRATEGY FOREVER ALSO.......NEWER FORGET THIS.........SO.......JUST KEEP A AIM TO MASTER ONE STRATEGY.......AND LOOK FOR OPPORTUNITIES ....FULFILLING THE CRITERIA OF YOUR STRATEGY
WISH YOU ACQUIRE THE TRADING PSYCHE
intradaySuRe
A ) SHORT SELL :- ( sell first & buy later )
OPEN & HIGH IS SAME.
Sell just below HIGH price if it is not breaking the high price for 3 minutes.
Example : If O-H is 110 sell @ 109 with a SL ( stop loss ) just above HIGH.
Best results are observed if :-
a) Market is Bearish ( weak )
b) O-H rate is near or above SELL PRICE i.e.: ( pr. Close + BS )
c) O-H rate is @ or near R1, R2, R3
d) Share price has gained 10-30% in previous 1-3 trade days.
e) Weak share but O-H rate is @ or near R1, R2, R3
B ) BUYING :- ( buy first & sell later )
1. OPEN & LOW IS SAME..
Buy just above LOW price if it is not breaking the low price for 3 minutes. Example : If O-L is 100 buy @ 101 with SL ( stop loss ) just below LOW.
Best results are observed if :-
a) Market is Bullish ( strong )
b) Pr. Close is Strong ( i.e.: it is a strong share )
c) O-L is near or below Pr. Close
d) O-L rate is near or below BUY price or @ S1, S2, S3
2. STRONG SHARE :- ( i.e.: strong close pr. day )
BUY if :-..
a) OPEN is @ BUY price.
b) OPEN is same as pr. Close.
c) OPEN & LOW is same, as discussed above.
d) OPEN is just above pr. Close but far below SELL price.
Best results if market is bullish. Keep the target of getting out @ SELL price, or @ R1, R2, R3 if it is showing strength & volume is more than pr. Day.
PLEASE REMEMBER : 1) AS A INTRADAY TRADER YOU SHOULD NOT FIGHT WITH THE MARKET. BE READY TO ACCEPT A SMALL DEFEAT RATHER THAN MAKING IT A BIG FAILURE.
2) IT IS NOT A EASY GAME. UNDERSTAND IT . ALWAYS ANALISE SUCCESS & FAILURE FOR EVERY POSITION YOU TAKE.
3) Select a strategy. Do the homework before trading for that strategy only. Don't mix other strategy with it. PAPER-TRADE.for few days sincerely(the more time you take the better)......than start with small qty. for a period of say a month(do not overtrade your limits).......once your success for your strategy is 70-80%.........than increase qty in steps again. .....DO NOT OVER RISK.......YOU CANNOT CHANGE THE MARKET ....ALL YOU CAN CHANGE IS YOURSELF......TOWARDS SUCCESS.
4) Once you get the feel of price movements , how and why they happen....then YOU may take additional guidance of any softwares (NOT MANDATORY)
5) YOU CAN MAKE MONEY BY STICKING TO ONE STRATEGY FOREVER ALSO.......NEWER FORGET THIS.........SO.......JUST KEEP A AIM TO MASTER ONE STRATEGY.......AND LOOK FOR OPPORTUNITIES ....FULFILLING THE CRITERIA OF YOUR STRATEGY
WISH YOU ACQUIRE THE TRADING PSYCHE
intradaySuRe