Best Intraday trading indicator and strategiesfor Indian market

Day trading is the act of buying and selling a particular stock within same day. Generally day trader takes the advantage of leverage and makes profit in small price movements of liquid stocks. There are different strategies

Entry Strategy

Always look for liquidity and volatility in a stock. Liquidity allows entering and exiting a share at good price and volatility gives you greater movement means high profit or loss. Find the trend of nifty and then compare the trend of any stock. If moving pattern of that stock is same as that of nifty, then choose that stock for intraday trade. Always try to trade in a stock which comes under derivative. This type of stock is daily updated in Equity Intraday Trading Strategy and in stock trend section.Find support and resistance of that stock and find trend of that stock. Always give stop loss after entry and use trailing stop loss in case of profit. This protects your money.

Exit Strategy

Before entry set a maximum loss per day you can afford both financially and mentally. If you are not using stop loss then give an exit target to yourself. In case of profit, book profit and don’t enter again in that stock. Maximum trade in a day should be 2-3.

Best Indicator for Intraday Trading

Once you know what kind of stocks you are looking for, you need to learn how to identify possible entry and exit points using candle stick pattern and technical analysis. Candle stick chart provide a raw analysis of price action and technical analysis gives you the exact direction or trend. These two are the Best Indicator for Intraday Trading.

Candle stick pattern

Candlestick pattern is a movement in prices shown graphically on a candlestick chart for a given period of time. If the closing price is above the opening price, then a green candle is formed which is called bullish candlestick. If closing price is below the opening price then a red candle is formed which is called bearish candlestick. There are 42 recognized patterns that can be split into simple and complex patterns.

Technical analysis

Now a day’s technical analysis chart is widely used by intraday traders. There is lots of indicator present in technical chart but 3 most useful indicators are generally used.

1. Moving averages
2. MACD
3. Stochastic

The 1st section is called candle stick pattern. Blue and red color line is called long moving average and short moving average line respectively. When short moving average cross long moving average then market moves up and vice versa.

1. 2nd section is MACD-moving average convergence and divergence. It shows buy and sell volume.
2. 3rd section is called stochastic. It shows the overbought and oversold position. If stochastic line crosses above 30 in upward movement, then bullish market takes place. When stochastic line cross 70, it reaches over bought zone and profit booking takes place and stochastic line move downward towards below 30 levels which is oversold region.

So while trading one should use both candlestick and technical analysis to know the trend and make profit.

Mr. Arthur Jackson, Technical Analyst and Founder of Nifty Trend providing trading advisory services in Free Intraday Trading Tips, Nifty Trend for Today, Equity, Derivatives and Commodity market. He also made a guest appearance in various workshops which were conducted on stock market awareness.

Mr. Arthur Jackson, Technical Analyst and Founder of Nifty Trend providing trading advisory services in Nifty Future Trading Tips, Nifty Trend for Today, Equity, Derivatives and Commodity market.