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dotnettutorials.net-Intraday Trading Course

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jay

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Intraday Trading Course

dotnettutorials.net/lesson/intraday-trading-course

Back to: Trading with Smart Money

This is the first part of the Intraday Trading Course for Beginners as well as
Professional Traders. I strongly recommend you follow this and our upcoming articles to
gain more knowledge about Intraday Trading. In this article, you will learn how to prepare
for day trading before the market opens. These are the factors we should study.

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1. Index
2. Context
3. Previous day activity
4. Next, support and resistance
5. Area of Opportunity
6. Possible entry price action
7. Index (if you trade in index stock)

1. Context
Where price is with respect to the major trend

Up/down/range(trend)
Pullback /impulse swing

2. Previous Day Activity

Price what did last day?

Studying the profiles of the previous day to get clues for today is one of the essential
steps a trader has to perform daily. When a trader starts tracking this regularly, when it
becomes a habit, he will always be in sync with the short-term moves in the markets. We
will study the following parameters to understand the previous day.

Attempted Direction (Up, Dn, Sideways)

Volume Generated (High, Low, Unchanged)
Position of Close (STRONG/WEEK/neutral)
Last swing high/last swing low

By studying the above factors, we can get a tight grip on what the SM was trying to
achieve the previous day and whether that attempt was successful. And Possibly the
trend for the next day

LAST HIGH AND LOW

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If the previous day has had a trending day in which the price was marked up to a new
level, the previous day’s high or low will not be as important. For example, in the case of a
trend day UP, the previous day’s low is not likely to test. Instead, the last swing low
becomes the important support level. This support level is most important in the morning
trading session. After a trend day up, expect that last swing low to provide initial support.

Position of close
If the market closes strongly (either near the previous day’s high or near the
previous day’s low), it gives the trader a very loud and clear signal that continuation
is likely the next day.
The last hour often tells the truth about how strong a trend truly is. Smart money or
strong hand shows their hand in the last hour, continuing to mark positions in their
favor.
Neutral CLOSE MEANS. Price closes in the middle of the day. The previous day
was a range day. If neutral closing on the previous day, we expect the price will
reverse from either the previous day’s low or the previous day’s high the next day. If
the trend is up, then we expect the price will reverse from the previous day’s low.

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Volume and attempted direction
High volume during the
closing hours indicates
continuation the next
morning in the direction of
the last half-hour.
If the market makes a
trending move in the last
hour after a lifeless opening
session, be positioned in the
direction of that move by the
close. There are very high
odds of an opening gap in
your favor the next morning.

3. Next, support and resistance

level
1. Where are immediate support and resistance or supply and demand zone
2. This is decided our risk reward

4. DEFINING AREA OF OPPORTUNITY

Trading is all about Location. Defining a location where a decisive group of traders acts
and fights it out is the key. Wait for the market to hit the identified price level, and watch
which side takes control, buyers or sellers. Go with the winning team and enter where the
losers start exiting and allow their order flow to take our position to profit. The location for
the area of opportunity is

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Previous day High, previous day Low
The last swing high, and last swing is low

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Major Swing Pivots.
Big Round Numbers

The previous day’s high and low are two very important “pivot” points because of where
buyers or sellers came in the day before. Look for price action at these points for either
continuation or reversal. These are the market’s own levels, and the market will respect
its own levels.

5. INDEX AND SECTOR

First, Identify the support (demand) and resistance (supply) levels in the NF and any
sector. If markets closed near demand, I would know to look for opportunities to buy the
next day as the price was likely to rally from that demand level.

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The next step was to look at charts of a few of the large sectors to find some that are also
trading near demand, as those sectors would likely rally from that demand level with the
broad (NF and BNF) market the following day. Out of the few sectors, I would always find
one or two that were set up very well with the broad market.

The final step was to look at a handful of high-volume stocks within that sector, and that is
always where I would find a VERY quality trading opportunity

6. ENTRY PRICE ACTION

There are three price action trade setups when price encounters an area of opportunity.

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Breakout failure
Breakout pullback
Test Reversal

Trading these three price action patterns blindly is a recipe for disaster. There are other
factors to be considered while trading these price action setups, such as strength of
trend, volume, price action, etc. Please watch the following video if you want to learn and
understand this concept in a better way.

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This is the first part of our Intraday Trading Course, and I hope you enjoy it. In the next
article, I will discuss Multiple Time Frame Analysis for Intraday Trading in detail. Please
join my Telegram Channel, YouTube Channel, and Facebook Group to learn more and
clear your doubts.

Dot Net Tutorials

About the Author: Pranaya Rout

Pranaya Rout has published more than 3,000 articles in his 11-year
career. Pranaya Rout has very good experience with Microsoft
Technologies, Including C#, VB, ASP.NET MVC, ASP.NET Web API, EF, EF Core,
ADO.NET, LINQ, SQL Server, MYSQL, Oracle, ASP.NET Core, Cloud Computing,
Microservices, Design Patterns and still learning new technologies.