Intraday trading strategy has few key points –
- Previous day US market closing.
- Gap up or gap down opening.
- Cool down period for the market.
- Strongest or weakest sector.
- Strong support or resistance to entry.
Previous day US market closing – yesterday US market fell down by more than 2% because of trade war scenario
Gap up or gap down opening – because of US market’s bearish sentiments nifty was gap down by -1.5% this morning, but this gap down opening was a pitfall for most inexperienced traders, whenever there is huge gap down, one should avoid short positions, because after a huge gap down probabilities of price rise increases, have a look at below image
above image is a part my “end of the day trading diary” where I write important key points of the trading session. you can see in above image since Feb 18 there were 6 occasions when nifty went high after a deep gap down (see blue arrows in above image)
Cool down period – I prefer to wait for minimum half an hour so that I don’t get trapped in volatility of the market in beginning.
Strongest or weakest sector – I opened National Stock Exchange of India Ltd. (National Stock Exchange of India Ltd.) I found nifty IT sector was the strongest one among other sectors in market and hcl was the top gainer in nifty IT sector as well as in nifty.
Strong support or resistance for entry – at 9:45 am hcl breached resistance around 932.6 and made a bullish crossover of 10 and 20 ema and macd indicator, on basis of above analysis I entered the trade at 935.35 –
and closed the trade at 958 (3:10 pm) –
this is how top gainer or looser strategy works, but it takes both effort and time to achieve success in this strategy.