IntraDay Trading Strategy

• Daily Chart : Find out imp psychological level

• IntraDay Chart : After break of that level

execute trade….
Last 100 Days daily chart…
How to find swing high
How to find swing low
Identifying swing high on actual
chart…
Swing high’s on chart…
Identify most nearest swing high…
Draw horizontal line on highest high
between these two highs…
NEAREST previous swing high act as
target…
 IntraDay chart
• Time Frame : 3 minutes….
Before market starts….
9:15 …Market open…
Wait till breakout of that level
Breakout happens…
Just focus on breakout and volume at
breakout…
Pay close attention to breakout and
volume at breakout…
Place buy limit order 1-2 tick above
high of breakout candle…
Stop loss should be 1-2 tick low below
the horizontal level…
Risk = difference between buy price
and stop loss price…
 Target : NEAREST swing high on DAILY
chart…Make sure that it must have real body
above horizontal level…
Reward = Difference between target
and buy price…
 Risk to reward ratio criteria
• It must be greater than 1:3
Check whether criteria fulfilled or not?...If yes
place buy order and wait for execution of that
buy order…
Buy order executed…
Market moving up…
Be patient and observe your
thoughts…
Don’t get panic…
Be patient and observe your thoughts..
Be patient and observe your thoughts..
Be patient and observe your thoughts..
Market is near to target..
Don’t get panic…
Be patient and observe your thoughts..
Market is at target…
Above target level…
More up than target…
Don’t get panic…
Exit @ 3:25 PM…R:R ratio achieved is
1:12…
Market close…
 Volume confirmation after breakout
candle
• Volume confirmation should be done on
breakout candle
 Re-entry criteria
• Stop loss trigger ,but 3 minute candle unable
to close below horizontal line……Place limit
buy order above swing high made on 3
minutes chart….Calculate risk : reward ratio
and position size accordingly….
Mkt open…
Breakout….Volume confirmation…Risk:Reward
confirmation….TRADE
Trade get executed…
Stop loss trigger…Exit…
 Intraday candle unable to close below horizontal
line….time to re-entry…Place limit buy order above
swing high…
Re-entry order get executed….
Now observe your thoughts…
 Mkt is at target…don’t get
excited…observe your thoughts…
After breaking target…mkt moves
strongly….
Exit at 3:25 PM…risk : reward ratio
achieved is 1:22
 Volume confirmation Criteria
• For buy : volume should be 5 times greater
than LAST 21 candles EMA of volume….
• Vice versa for sell signals….(Only difference is
that you can use 3X increase in volume
confirmation criteria….after 6 moths of
trading)
 Money Management
• Which type of trader you are :
• Low risk trader : less than 0.5% risk per trade
• Moderate risk trader : upto 1 % risk per trade
• High risk trader : More than 1% upto 2%

DON’T GO BEYOND 2% RISK PER TRADE….

 Lot size /Quantity calculation
• Suppose your portfolio is of 100K
• Risk per trade is 1%
• Means risk per trade is 1000
• Quantity is = risk per trade divide by stop loss
points
• Suppose your stop loss is of rs.2 then quantity
is 1000/2 = 500
 Backtesting
• 20 trade sample size exercise
• Total exercises = 5
• Without money…Just like paper trading…
• You will get clear idea how strategy is
performing….this will help to improve your
confidence…
 Forward testing
• 20 trade sample size exercise
• Total exercises = 5
• With money….Risk per trade start with
Rs.10…Go on increasing as and when your
confidence increase…
 When not to trade
• When market(Spot Nifty) open with more than
2.5% gap
• Union budget day
• Central Govt. election declaration day
• When banking holiday / bank strike / only trading
day but clearing holiday
• RBI credit policy day…avoid banking / finance
sector stock…but you can trade in other sector
stock….
Company Result , board meeting day…
 How to select stock
• Stock which are available to trade in derivative
segment (F&O segment) having price more
than rs.20 and less than rs 2000