Intraday Stocks for next day

HDFC Bank smb.png

Tomorrow it's going to be interesting. We have quite a good pattern coming on to HDFC Bank. Tomorrow trade will be affected with Expiry Volatility and Roll overs. Days nearing to expiry is as volatile as expiry days. Especially when stock is in range.
Then again, as per the setup, we have found the SMB. But due to price ranging, we need to make sure we are not getting trapped into wrong trade. That's why , no VR is prepared. We are looking for a candle close within/near by the SMB range. And then buy or sell it's breakout. That plan is momentum swapping. Momentum swapping is often used , when we cannot finalize a zone , due to external factors. It's an excellent tool to use in news and event based trades.
Hope you have understood Two major factors of trend finding for intraday.
SMB and VR.
These two itself holds the power to manipulate intraday moves. Training your eyes and brain to picturise the manipulative blocks and teaching your fingers the musle memory to act accordingly can bring wonders in Intraday trades.

Adding double tops/bottoms in the making of SMB can be beneficial for traders. Generally we should wait until price is around SMB, then watch for a reversal pattern and place market orders if it appears. Your Entry is only one aspect of trading. To ensure high win rate, aim for 1:1 risk/reward ratio which may be unpopular among traders. This keeps the probability of a win high, making it easier to take trades confidently.

Remember how Jessy Livermore traded ?! . SMB and VR can be the visual blocks as his financial code ledgers. An updated twist on how Jesse Livermore traded stocks with only his "price action ledger" in that era.

Hope you have understood the ideology of finding crucial blocks for us to trade intraday.
With the couple of live charts I gave in advance.... Here finishing the second part of our trading ideology ' Trading what you see'
Also let us finalize our ideology structure with last and certainly not the least segment called ' Limitations of a retail trader '

Trading is end of the day , a zero-sum game. When you understand this fact, you'll see that your expectations for trading are completely misplaced. That's why we call ,trading a business of "speculation." There is nothing guaranteed here. All we do is calculated risks. The ones who don't do calculated risks and blindly trades , will eventually burn his account and leave.

Financial markets are like any other business in that it requires hard work, dedication and perseverance to succeed. If you want to become a doctor ,you should go to med school, pass the entrance exam and then practice medicine for years or decades before having any chance of becoming good at your profession. Financial markets are no different from other competitive fields. Don't be like the people, who have an illusion of easy money waiting for them around the corner. If it were so easy, we would have hundreds of millionaires on this forum by now. It takes time to become the pro trader.
But right before going to ' Trading what you see segment ', let me share you a chart.
Let us grab what we see in the chart. Let us observe the price action happening.

View attachment 48847

The figure above is ' LIVE CHART ' of prism Johnson company.
This is naked chart , as no indicators or drawings applied. We haven't marked any relevant supply and demand zones.

View attachment 48848

This second figure is same LIVE CHART with zones marked out.
We can clearly see difference between two figures.
On the second one , we can anticipate the demand and supply zones.

We can understand that , price is currently trading within the DEMAND zones and expected to ride towards Supply zone.

that's how we analyse stocks before the move happens.

Similar threads