“I fear not the man who has practiced 10,000 kicks once, but I fear the man who has practiced one kick 10,000 times”_ Bruce Lee
In line with the famous martial artist, it can be said that is of no worth if you just beat around the bush for finding new strategies during intraday gap up or gap down trading and don’t practice of your own with simple logics. New retailers in stock market find it very difficult to determine whether a stock trend would be supported by its previous pattern or it would just fail badly.
So, here is one trick. Intraday trading can be done very confidently after finding its major supports and resistances in weekly or daily candle stick charts. Use of two time frames gives confidence enough to hold on with strict stop loss in intraday trading.
In stock market, history do repeats. So, historical levels would be helpful during gap up or gap down candle- stick charts.
Do find major support and resistance in weekly or daily candle stick chart as shown above (Chart source: https://in.tradingview.com )
| In case market opening on gap-up trend near weekly resistance: Wait for first few 15 minute candles to form In case stock trend breaks the weekly resistance then candle should re- test it’s weekly resistance strength After re-test let there be one firm ( body part of candle should not be negligible) green candle above weekly resistance Now the weekly resistance would act as a support for intraday Our stop loss will be candle’s low prior to the confirmation or entry candle Target will be = (Entry-Stop Loss)X1.15= 1:1.5 | In case market opening on gap-down trend near weekly support: Wait for first few 15 minute candles to form In case stock trend breaks the weekly support then candle should re- test it’s weekly support strength After re-test let there be one firm ( body part of candle should not be negligible) red candle above weekly support Now the weekly support would act as a resistance for intraday Our stop loss will be candle’s high prior to the confirmation or entry candle Target will be = (Stop Loss- Entry)X1.15= 1:1.5 |
