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Intraday Trading

The process of Intraday Trading involves the acquisition and sale of stocks or indices within the same trading day. Hence, it offers an opportunity for daily income. Without the proper approach, many traders battle inconsistent results and long strings of losses.

In this blog, we will look at 10 important concepts that professional intraday traders use to make sure they remain consistently profitable. Get ready for that intraday upgrade.  Let’s dive in!

What is Intraday Trading?

Intraday Trading, thus sometimes referred to as day trading, has to do with opening and closing property during a trading session. Unlike in swing or positional trading, intraday traders try to derive profits from short-term price movements that happen during the day.

Quick facts about intraday trading:

 ✅ Positions closed before market close – no risk at night.

 ✅ Traders rely mainly on technical analysis and short-term trend analysis.

 ✅ Highly liquid stocks and indices, such as Nifty and Bank Nifty, are preferred.

 ✅ Must adhere to a disciplined risk management system in order to avoid any large drawdowns.

10 Proven Intraday Trading Techniques

1️⃣ Opening Range Breakout Strategy

One of the best-loved strategies for active traders is the Opening Range Breakout. It involves watching the market for 15 minutes (from 9:15 AM to 9:30 AM in India).

How it goes:

 🔹 Mark the high and low of this opening range.

 🔹 Price breaking above the high on strength of volume would mean a bullish breakout.

 🔹 Price breaking below the low would mean a bearish breakout.

 🔹 Confirming indicators like VWAP or volume spike could give greater reliability.

Pro tip: Run your trades on BankNifty or stocks with high liquidity to get the best results from this strategy.

2️⃣ VWAP Reversion Strategy

The Volume Weighted Average Price (VWAP) is a rather popular indicator used in the institutional realm to denote the arithmetic average price weighted by volume through the trading session. 

How to use VWAP:

 ✅ Buy on dips to the VWAP line in an uptrend.

 ✅ Sell on rallies to the VWAP line in a downtrend.

 ✅ VWAP acts as dynamic support/resistance during the session as well.

This strategy is perfect for entering pullbacks with really tight risk-just the way professional day traders love it.

3️⃣ The EMA Crossover Entry

The Exponential Moving Average (EMA) crossover is a classic strategy for capturing short-term trends.

How it works:

 🔸 Use the 9 EMA as the fast one and the 21 EMA as the slow one.

 🔸 When the 9 EMA crosses over the 21 EMA and price moves higher, it becomes a bullish signal.

 🔸 When the 9 EMA crosses below the 21 EMA, it becomes a bearish one.

 🔸 Use momentum indicators like MACD or RSI to confirm and eliminate false signals.

It is good for momentum trades and trending markets!

4️⃣ Support-Resistance Flip

Support and resistance zones formed during the previous trading day prove to be critical levels for intraday traders.

How to use it:

✅ Mark levels like PDH (Previous Day High), PDL (Previous Day Low), and POC (Point of Control).

 ✅ When the price breaks these levels and retests them, they usually flip from support to resistance or vice versa.

 ✅ Use candlestick patterns for confirmation (pin bar, engulfing candle).

This simple but extremely effective method facilitates detecting intraday reversal and breakout trades on a higher probability basis.

5️⃣ Momentum Scalping Strategy

For traders who love fast action, momentum scalping is a go-to approach.

How to execute:

 🔹 Use the screener tools at your disposal, such as Finviz, TradingView, or your broker’s scanner, to find high-volume stocks attached to news catalysts or with a strong pre-market move.

 🔹 Buy on breakout candles alongside volume confirmation.

 🔹 Take profits quickly while targeting a quick reward-to-risk ratio of 1:1 or 1:2.

 🔹 Exit quickly as momentum hardly lasts!

Scalping techniques for intraday trades are best for snagging any small moves in the market without watching the market get choppy. 

6️⃣ Breakout-Retest Confirmation

Do you want to know why some breakouts fail? They do breakouts without much conviction. Hence, one should consider waiting for a retest following the breakout level.

How to perform:

 ✅ Let price break above (below) a key level first.

 ✅ Wait for it to retest that level-it tells if the breakout is genuine.

 ✅ Enter upon confirmation of the retest with a tight stop loss.

✅ Works well on Nifty BankNifty futures, especially when trading with institutional momentum.

7️⃣ Relative Strength (RS) – Intraday Picks

Different stocks move differently for the markets. There lies some relative strength against the broader markets.

How to trade RS:

 🔹 If the Nifty remains flat and a stock like Reliance shows buying momentum breaking highs, just pay attention to that stock.

 🔹 If, on the other hand, Nifty is heading lower whereas a stock seems to be holding on strong, go for that outperformer.

 🔹 Perform scans on RS or intraday watchlist to look for these outperformers.

This helps in filtering out those stocks which can do better in anybody’s market. 

8️⃣ News-Driven Scalps

The news Intraday moves fast! From directly breaking news of RBI policy changes, corporate earnings, or global headline news – any news that triggers volatility can present opportunities for quick profits.

Key pointers:

 ✅ Stick to liquid, high-beta stocks or indices reacting to news.

 ✅ Immediate breakout trades with tight stop-losses only – the news volatility may suddenly reverse.

 ✅ Do not hold news trades for long – go for quick scalps only.

9️⃣ Gap Trading for Intraday

Gaps caused by pre-market moves or global news can result in one of the largest intraday moves.

How to approach gaps:

 🔹 Use pre-market data and global cues to identify potential gap-ups or gap-downs.

 🔹 After 15 minutes, check if the price continues in the gap direction or starts to reverse.

 🔹 Example: Infosys gaps up on strong earnings — watch for a retest of the gap zone and subsequent continuation for a safer entry.

Gaps can provide strong trade setups if traded with a defined plan.

🔟 Volume Surge Breakout

Volume is usually the earliest indicator of a strong move. Using volume spikes will allow you to catch breakouts before they become obvious.

How to use it:

 ✅ Observe for a sudden surge in volume on your intraday chart (5-min or 15-min).

 ✅ Trade breakouts accompanied by this volume surge.

 ✅ Complement with other breakout setups like ORB for high-conviction trades.

📊 Best Intraday Time Frames:

PurposeTimeframe
Strategy Setup15 min
Entry & Confirmation5 min
Trend Analysis30 min
Risk Management1 min

Intraday Risk Management Essentials:

📌 Never risk more than 1-2% of your capital on a single trade.
📌 Always set a predefined stop-loss and target before entering any trade.
📌 Avoid overtrading – focus on 2-3 high-quality setups per day.
📌 Keep a trading journal to review your performance and identify patterns.
📌 Stay calm, disciplined, and don’t let emotions drive your decisions!

Conclusion: Unlock Your Intraday Trading Potential

Intraday trading is highly effective in collecting daily profits consistently; however, success necessitates more than just luck. Once you’ve mastered 10 techniques from opening range breakouts to volume spike confirmations, you’ll be well set to confidently navigate fast-paced markets.

Risk management and emotional control are likewise crucial as they serve as the guard to your capital, thereby facilitating long-term sustainability. Intraday trading with the right blend of technical skills, real-time market awareness, and a patient mindset eliminates any chance involved and becomes executing high-probability trades.

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