If you are one of those stock investors who look forward to making quick gains through stock investment, intraday day trading should be on top of your list. So, let’s delve deep and get to know some of the most popular intraday trading techniques that are even preferred by every best stock broker in India.
What is intraday trading?
Intraday trading refers to the purchase and sale of stocks on the same day before stock markets shut their operations. If it is not done, the chosen cheapest stock broker in India may settle down your position, or transform it into a delivery trade.
So, here are some of the most proven intraday trading techniques that you can choose to follow to gain an edge in the field.
Pivot Level Intraday Trading
According to intraday trading experts, one way to add profits is to consider the pivot levels since they are known to deliver superb support and resistance. In fact, they prove to be major game-changers.
Trading Using Pivot Levels and RSI:
A pivot level refers to a technical sign that is employed to keep a check on a stock’s trend using past prices. These levels refer to just an average of the stock’s top, bottom, and closing standards from the last trading session.
If the price is trading above the pivot point, it suggests that the stock’s positive sentiment is continuing for the day, and if the price is trading below the pivot point, it shows that the stock’s negative emotion is continuing for the day.
O-H-L Intraday Trading Technique
Among various intraday techniques adopted by every best stock broker in India, Open-High-Low Intraday trading is a popular one that is known to provide excellent outcomes in regard to day trading. This Intraday trading formula is also immensely prevalent among a majority of stock traders. In the case of the Indian stock market, this technique gives superb results for Nifty 50 stocks.
- The initial thing to do in this procedure is to check the opening rates for NIFTY 50 firms. You can even prepare a watchlist.
- Searching for the scripts with Open = Low for the Buy Trade and the scripts with Open = High for the Sell Trade.
- In the case of a buy trade, keep your stop loss at the opening bottom, and for a sell trade.
- Book gains at the 1.5 percent to 2% profit objective on an intraday basis do not carry the transaction forward overnight.
Market Price Trend Technique
You can pick a stock for intraday trading by doing a constant inspection of the NSE and BSE market price trends for a few minutes. If the current market price of any stock is
- NSE > BSE, then the prices are ceased to go up very soon.
- NSE BSE, then the downtrend will cease to prevail for a short time, and prices will get down only until NSE is lower than the BSE.
- If the NSE is at the same level as the BSE, the short-term trend is unbiased and the price may vary.
You may get the nerve of the market trend with the support of various Intraday trading strategies equations. In the case of high-volume trading, this intraday trading approach produces the best outcomes.
Gann Square Intraday Trading Technique
One of the most popular Intraday trading strategies for checking different levels is the Gann square of nine. The essential numbers that are crucial in the Gann Square of nine are.
- 0 degrees or 360 degrees: 2, 11, 28, 53,…
- 3 degrees, 13 degrees, 31 degrees, 57 degrees, 91 degrees
- 90°: 4, 15, 34, 61, 96…
- 180°: 6, 19, 40, 69…
Using the Gann Square for Intraday Trading:
The first and foremost objective of utilizing Gann Square of Nine is:
- Predicting the cost of support and resistance.
- Getting the day’s hot news.
To utilize the Gann Chart, use the current market price for the beginning number 1. The resultant numbers in the cardinal and ordinal number cells indicate the levels of support and resistance. Based on this data, you may purchase or sell based on the support and resistance levels. Gann’s square of nine predicts the degree of price change based on the circle as well.