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Intraday Strategy for profitable trade
TATA STEEL LTD on 1st March was a top gainer. This strategy will explain to us how to analyze the stock to make a profitable trade in the future. I have named this strategy as Three Candle Strategy. Step by step we will study in detail about this strategy.
1. Observing Candles
- Set chart time frame for 15 Min and start observing their high and low.
- Mark out their high as Resistance and low as Support.
- Use the Volume indicator to analyze the market moment.
2. Break-Out
- Observe the break-out carefully.
- If Break out happens, go for the buy option/ If Break Down happens, go for the sell option.
3. Understand Candles
- In the above candle graph picture you can see after hitting the target of 3:2 the candle stick pattern given the signal of Shooting Star. Which is the bearish entering signal.
- From that point you can go for the Sell option for the ratio of 3:1.
4. Re-positioning in Market
- After Shooting Star we can see candles forming a Bullish Engulfing pattern, which indicates a bullish trend in the market, from there you can go for the buying option.
4. Short Positioning
- After Bullish Engulfing the market is forming a Dark Cloud pattern, which indicates a reverse in the market.
- Dark Cloud is a strong indicator of the bearish trend, from there you can go for a sell position, as we saw the overall market was bullish so its better to keep our target & stoploss for 3:1.
5. Bullish Engulfing
- The market has formed Bullish Engulfing again with a high volume of 6.5M from here you can take a buying trade for 5:2 or 7:3.
Overlook on Trading Position
- This trading strategy is only applicable to Intraday trading.
- Always use the Volume Indicator.
- Use two SMA of lengths 20 and 200, with different colors, which helps you to see market trends.
Disclaimer: All the stocks are Technically and Fundamentally Analyzed by Vivek Mayur. Invest and trade at your own risk.
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