Here is daily intraday tips in equities share market
one of the best and simple intraday strategy or intraday tips you can try.
Opening Range Breakout (ORB) is a commonly used trading system by professional and amateur traders alike and has the potential to deliver high accuracy if done with optimal usage of indicators, strict rules and good assessment of overall market mood. This system is applicable only for intraday trading.
ORB trading has several variations practiced by traders all over the globe. Some traders trade on a significant breakout from opening range, while others trade immediately on opening range breakout. Time window for the trades also varies from 30 minutes to 3 hours.
Over a period of time observing and trading Indian markets, I have devised with the below system suiting our markets. Below method is both a scalping and a trending system combined into one, hence it is possible to take the advantage of quick moves and trending markets with multiple lots of trades.
Trading Strategy
Quite Simple and straightforward. Rules in the next section needs to be adhered to increase the success rates dramatically.
Any stock creates a range in the first 30 minutes of trading in a day. This is calling Opening Range. The highs and lows of this timeframe is taken as support and resistance.
1. Buy when the stock moves above the Opening Range high.
2. Sell when the stock moves below the Opening Range low.
PLEASE NOTE THAT THE ABOVE SYSTEM IS GENERIC, THE RULES BELOW WILL MAKE IT A SPECIFIC SYSTEM. IF YOU ARE FOLLOWING THIS SYSTEM, PLEASE FOLLOW ALL THE RULES FOR BUY / SELL STRICTLY.
General Rules – Applicable for both Buy and Sell:
Opening range is defined by the high and low made in the first 30 minutes.
Rules for Buy
- Buy when the 5 minutes candle high cross above the opening range.
Where to keep Stoploss
Initial Stoploss – Low of the Opening Range.
Trailing Stoploss - As the stock moves in your direction and you are in profits, book 50% , trail the stoploss.
When to book full profits
Ride the trend till EOD
Rules for Sell
- Sell when the 5 minute candle low cross below the opening range.
Where to keep Stoploss
Initial Stoploss – High of the Opening Range.
Trailing Stoploss - As the stock moves in your direction and you are in profits, book 50% , trail the stoploss.
When to book full profits
Ride the trend till EOD
Below additional conditions will give high probability of success:
- The Opening Range breakout is above previous day’s high for buy.
- The Opening Range breakout is below previous day’s low for sell.
- Trade is in the direction of higher time frame charts (15 min /30 min).
- Overall Market is moving in the direction of the trade.
- Opening range breakout happens after brief period of consolidation.
Important Additional Points
- If the opening range is too wide, better do not trade ORB, since the SLs will be very far in our system. You can use other trading systems in such a case.
- Avoid Opening Range Breakout trades in case of a heavy news flow day. ( Like Inflation, Manufacturing, Policy decisions etc.). Use other trading systems once the market settles down after the news.
Even if the above rules looks bit complicated to you, then follow just one simple rule.
Mark the High-low range for 1st 15 mins,
- Go Long if High range is broken, with stop loss as low range.
- Go Short if low range is broken, with stop loss as high range.
Here are some more suggestions:
- Huge gap ups and gap downs days should be avoided for intraday as market has already marginalized.
- Direction is the key to success. Wrong direction doubles the mistakes while right direction reduces the mistake. You cant be Bull in a bear market or a bear in a Bull Market. So understanding the stock specific trend through technical indicator is a must.
- Choosing a right stock is next key to successes. A stock which has already reached its peak or bottom will be worthless and risk reward ratio will be very low. Previous day volume is very much helpful in choosing the right stock.
- If you some how developed a very good understanding of markets direction “target’ becomes more important than “stop loss” because if you are in right direction stop loss can never be huge … but not booking the profit on targets may eat up the entire gain by end of the day .
- Play in more than one stock a day because if one stock does not perform .. you can earn some thing out of second one.
- Daily indicators will be worthless. A combination of 5 minutes indicator with 1 hour indicator is highly recommended. 5 Minutes indicator to be used for tracing the market direction and 1 hours indicator to be used for setting the targets.
- If you have chosen the right direction and 5 minute indicator is moving in opposite direction … dont take a position till 5 minutes start moving in your choice of direction. Atleast 3 candles are to be watched for confirming the directions.
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