Intraday Trading Tips and Tricks

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The document discusses various technical indicators and strategies that can be used for intraday trading such as opening breakout strategy, parabolic SAR, RSI, Donchian channel, ADX, VWAP etc. It also provides tips on how to select stocks and check the trend.

Some technical indicators mentioned for intraday trading include parabolic SAR, super trend, RSI, Donchian channel, ADX, VWAP.

The ADX system has three components - ADX is used to measure the strength/weakness of the trend, +DI and -DI complement ADX by defining trend direction. ADX above 25 indicates a strong trend.

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HOW TO PICK STOCK - INTRADAY
INTRADAY TREND PREDICTION -
 - At 9:25AM Go to NSEINDIA site.
 - Select LIVE MARKET --> Live Analysis --> Select "Advances and Declines"
 - If Difference between Advances and Declines is 200 or MORE Then which ever side
is greater that will be the TREND
 - All the details 52 week high low / Bulk or Block deals / Stocks hitting the
Upper & Lower price bands etc we can find from NSE itself (Live data).

**IMP** - We need to also check bleow for a STOCK for its health status ( Most
Suitable for Long Term )
- EPS should be increase year by year
- Book Value Per share should be increase year by year
- Total Debt to equity Ratio should be < 0.50
- Current Ratio should be > 1.50
- Price to earnings Ratio between 15 to 30
- Price to Book Ratio should be <1 or 1.
Note - Use Stockedge app, NDTV Finance, Money Control etc to know above info
for a STOCK.

1 - Down Load STOCKS of NIFTY50 & F&O Stocks from NSEIDIA at 9:20AM OR 9:30AM. Also
COPY TOP Losers and Gainers data at that time.
2 - Find "OPEN = LOW" STOCKS (BUY) & "OPEN = HIGH" STOCKS ( SELL) - FORMULA
"=EXACT(A1,B1)"
3 - Check if any news came for selected stock. If YES, then Indicator wont work as
expected.
4 - When ever selected STOCK breaks out 52 WEEK HIGH its a UP TREND ( At that time
need to BUY particular STOCK )
5 - When ever selected STOCK breaks out 52 WEEK LOW its a DOWN TREND ( At that time
need to SELL particular STOCK )
- IF NIFTY is >+25 then its a Strong UP TREND (Stocks will move up side).
- IF NIFTY is <-25 then its a Strong DOWN TREND (Stocks will move down side )
- IF NIFTY is inbetween <-25 and >+25 then its Neutral Stocks will move sideway.
- Follow the Chart to know TREND whether its UP ( BUY ) or DOWN ( SELL ).
6 - Open stock Chart (Ex: In Google ) Draw a line by touching top notches and Low
notches to know whether TREND is UP or DOWN.
- ******Always Follow the TREND. Its a Thumb Rule******
7 - Check if any BULK / BLOCK Orders happend for selected stock.
If FII / DII / Mutual Funds placed(BUY) Bulk / Block order then stock will
increase.
If FII / DII / Mutual Funds placed(SELL) Bulk / Block order then stock will
decrease
Important point is if BUY-volume is high stock will grow / If SELL-volume is
high then Stock will decline.
8 - Check Indicators RSI, CCI, William %R etc from Stock Edge app OR
in.investing.com for a stock.
- Check chart types MACD, Stochastic, Bollinger bands etc rom Stock Edge app OR
in.investing.com for a stock.
9 - Check If stock has Gap up ( Short Order with target of last day's close ) / Gap
Down ( Buy Order with target of last day's close ).
- Need keep Stop loss of 20% - 50% of 5 Day ATR.
- Gap sizes equals to or below 20% of 5 day ATR is filled very fast.
- Win rate drops off if Opening gap size is beyond 40% of 5 day ATR.

FORMULA -
GAP UP = Today's Open > Previous day High ( GAP UP )
GAP DOWN = Today's Open < Previous Day Low ( GAP DOWN )
Note - Down load NIFTY 50 & F&O Stocks Info from NSE at 4:01PM Daily to Compare
with NSE Tomorrow 9:15:10SEC AM STOCK's Open Price.

TIPS -
- A gap up in price, into supply, after a rally in price, and in the context of
a downtrend, is a very high-probability shorting opportunity
- A gap up in price, and in the context of an uptrend, is a lower-probability
shorting opportunity and can actually be a buying opportunity
on a pullback to demand when there is a significant profit margin above.
- A gap down in price, into demand, after a decline in price, and in the
context of an uptrend, is a very high-probability buying opportunity
- A gap down in price, and in the context of a downtrend, is a lower-
probability buying opportunity and may in some cases be a shorting
opportunity after a rally into supply when there is a significant profit
margin below
Link - http://stockcharts.com/school/doku.php?
id=chart_school:trading_strategies:gap_trading_strategies
10 - Check If selected stock is hitting Upper Price Band / Lower Price Band in
NSEIDIA Site ( LIVE MARKET --> Live Analysis )
- If STOCK hitting Upper Band then its BUY Signal / If STOCK Hitting Lower Price
Band its SELL Signal.
- If stock not exist in list no need to consider this check.

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INTRDAY TRICKS -
We can use Pivot Point Strategy and Gann Calculator Strategy to know Support &
Resistance levels for a stock.

 Pivot Point Strategy -


i. If STOCK trading Below Pivot Point then we need to SELL a stock
ii. If STOCK trading Above Pivot Point then we need to BUY a stock
iii. Need to take previous day HIGH , LOW & CLOSE values

Formula -
Pivot point (PP) = (High + Low + Close) / 3.
Y = PP * 2
R1 = Y - Low
R2 = PP + ( HIGH - LOW )
S1 = Y - HIGH
S2 = PP - ( HIGH - LOW )
Gann Calculator Strategy -
i. After 30 min of opening Stock Market find the VWAP(Volume Weighted Average
Price) of a stock from NSEINDIA site
ii. Paste the copied value in Gann Calculator. It will give Buy / Sell point and
Support and Resistance levels
iii. Use site http://www.pivottrading.co.in/pages/gannSquareof9.php
 Link - https://www.youtube.com/watch?v=aS0Svch735o

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INTRADAY TRICKS TECHNICAL -
1.

Opening Breakout Strategy - Candles 15 min


Link - https://www.youtube.com/watch?v=RAVeK9g5V2Y
2.

Intraday Strategy - Parabolic SAR + Super trend 7, 3 & 10, 3 & 11, 2 + Vortex
indicator (10 min chart)
Link - https://www.youtube.com/watch?v=j5E94r72SXA

3.

Intraday Trick - RSI + Supertrend

RSI 1 hour Chart

Super trend 5 min Chart

RSI above 50 - BUY signal

RSI below 50 - SELL signal


Link - https://www.youtube.com/watch?v=woXX8_aok7A

4.

Intraday Trick (1(Preferable) OR 3 min Chart) - Donchian Channel + Awesome


Oscillator (need to use Default setting) +Renko ( Its a line name)
Link - https://www.youtube.com/watch?v=bbbEcAiGVzQ

5.
The Average Directional Index (ADX) ( 1min (Preferable), 5 min & 15 Min chart)
measures trend strength without regard to trend direction. The other two
indicators, Plus Directional Indicator (+DI) and
Minus Directional Indicator (-DI), complement ADX by defining trend direction. Used
together, chartists can determine both the direction and strength of the trend.

- ADX system has three components � ADX, +DI, and -DI


 - ADX is used to measure the strength/weakness of the trend and not the actual
direction
 - ADX above 25 indicates that the present trend is strong, ADX below 20 suggest
that the trend lacks strength.
ADX between 20 and 25 is a grey area
 - A buy signal is generated when ADX is 25 and the +DI crosses over � DI
 - A sell signal is generated when ADX is 25 and the � DI crosses over +DI
 - Once the buy or sell signal is generated, take the trade by defining the stop
loss
 - The stop loss is usually the low of the signal candle (for buy signals) and the
high of the signal candles ( for short signals)
 - The trade stays valid till the stoploss is breached (even if the +DI and � DI
reverses the crossover)
 - The default look back period for ADX is 14 days

Note : The black line represents ADX, ensure it is above 25 while looking for the
crossovers.
Link - https://zerodha.com/varsity/chapter/supplementary-notes-1/

6.
VWAP - 1 min chart (Preferable)
Depth" in Kite
 - Check if selected STOCK made Consecutive 3 OR 7 days Lose OR Gain using stock
edge option "Scans" or in NSE site using option "Historical data".
- Using above points we can know whether trend is down OR up. If trend is down go
for SHORT / If trend is Up go for LONG.
 - Check Charts (Saved views in Kite) for when to enter and exit.

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STOCKS SCREENER - Please find the link Below

 - Llink - https://screener.smallcase.com/

Note - Need ZERODHA Credentials to log into above site.

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