Get Regular Updates via Email (Its free !!)


Monday 8 September 2014

Importance of Market Direction in Intraday Trading.

Readers, today I give this important lesson on intraday trading for the benefit of all. Please read this several times and practice in your daily trades. Please write to me in case you have any questions.

In our two trading systems - Opening Range Breakout and Intraday Trading System, we have defined overall market direction as an important indicator for high probability trade setup.

While individual stocks break the support or resistance levels, it is also important to look at how the broader markets behave and plan your trades in broader direction to have higher rate of success.

General Rules

Neutral Zone - Cautious trading. Trade only in stock showing strong trend.

Positive Zone - Reduce short positions. Close profitable short positions. Do not enter any fresh shorts. Look for potential buying opportunities.
Bullish Zone - Exit all short positions. Continue with the trend on profitable long positions.

Negative Zone - Reduce long positions. Close profitable long positions. Do not enter any fresh longs. Look for potential breakdown of stocks to create shorts.
Bearish Zone - Exit all long positions. Continue with the trend on profitable short positions.

How a Bearish day works for Intraday trading

I explain this with today's market as an example. Following were the levels given in pre-market calls. These levels are based on simple support / resistance / pivot points.

Resistance Levels:6740-60
Support Levels:6680-60

Positive above:6720
Bullish momentum above:6740

Negative below:6700
Bearish momentum below: 6680

Today market did not go above 6720, so the market was never positive.After two hours of opening, the index slipped to the negative zone. Overall market direction was confirmed to be negative.

What to do when the index is between 6700 and 6720 (Neutral Zone) ?

This zone is tricky to trade since the market along with our stocks could move either way. Trade in very limited quantity strictly based on Intraday Trading systems. 

What to do when the index is between 6700 and 6680 (Negative Zone) ?

In such a market, do not go aggressive on any long positions. If you are holding long positions in profit, take the profits and be in cash.

Identify weak stocks that are breaking crucial support. Go short using ORB or Intraday Trading Systems.

What to do when the index is below 6680 (Bearish momentum zone) ?

Exit all longs even if the individual stocks are showing a strength. No longs strictly in the bearish momentum zone. 

Continue holding the shorts. Follow trend trading method in my trading system. Initiate new shorts based on ORB or Intraday trading system.

Once downward trend established, dont hope for a reversal, trade with the trend and short on rise. But remember that markets can change direction any time, that is where the importance of stop losses come into picture.

Exactly opposite of the above needs to be done in the case of a bullish day. I will explain with an example once we have such a day.

Happy trading.


All are produced by meticulous alpha-numerical computations from a fancy coding software.The best way cryptocurrency is introduced into existence is sort of fascinating. Not like gold, which needs to be mined from the bottom, cryptocurrency is merely an entry in a digital ledger which is saved in numerous computer systems around the globe. Click here to Learn more

Nice Article!Thanks for sharing your valuable information. I think its worked. But, can you suggest me a best way to make money with trading or any other ways?

escorts ltd share price
today's intraday stocks
concept of share market
bharti airtel share price
icici asset management
ashoka buildcon share price

nice information thanks for sharing valuable content with us we also provide great information related to your blog feel free to visit our investment dummies website.

Thanks. I am regularly following you. Your posts always contain some good information and your way of explanations is very very good. See marksans pharma news

nice information thanks for sharing valuable content with us we also provide great information related to your blog feel free to visit our Sakthi Finance Limited.

Nice information thanks for sharing valuable content with us we also provide great information related to your blog feel free to visit our blog
Pharma shares
Nifty Pharma index
Glenmark Pharmaceuticals Limited
Piramal Enterprises Limited

Great work ! I am very interesting to read your blog post. Thanks for sharing
Ambuja Cements Limited Shares

Your information is a beneficial. That’s great to read this blog, you are a good and having the wonderful skills. Really appreciable, thanks for sharing this wonderful blog.
Accurate Forex Trading Signals

Perusahaan menerbitkan (menjual) saham untuk mengumpulkan dana guna menjalankan bisnis mereka. Pemegang saham (pemegang saham) sekarang telah membeli sebagian dari korporasi dan, tergantung pada jenis saham yang dimiliki, dapat memiliki klaim atas sebagian dari aset dan pendapatannya. Dengan kata lain, pemegang saham sekarang menjadi pemilik perusahaan penerbit. Kepemilikan ditentukan oleh jumlah saham yang dimiliki seseorang relatif terhadap jumlah saham yang beredar. Misalnya, jika sebuah perusahaan memiliki 1.000 saham beredar dan satu orang memiliki 100 saham, orang tersebut akan memiliki dan mengklaim 10% dari aset dan pendapatan perusahaan. cek juga dan Daftar Perusahaan Publik, Terbuka, Tbk yang Delisting dari BEI

Thank you for putting all these strategies into a very readable place. It shows your ability and great skills. keep sharing such articles in future.
forex trading live contest online

These trading tips are helpful. This reefer Karachi has combo benefits in trading.

You have a genuine capacity to compose a substance that is useful for us. You have shared an amazing post about trading. Much obliged to you for your endeavors in sharing such information with us. Top 5 Trading Platforms 2021

Very valuable information, it's not in all the blogs that we find here, congratulations, I was looking for something like this and found it here.
Cfd Trading Brokers

Your blog is really good and it helps others. It's a perfect solution for those who search for it. Please share more information like this. how to buy bitcoin

Thank you for sharing your valuable insights. Forex traders utilize numerous techniques and strategies to identify the best entry and stop points, and the best timing for buying and selling traded currencies. Keep sharing your valuable expertise and experience. Glad to come across this, great blog. Proprietary Trading Europe

I am amazed by the way you have explained things in this article. This article is quite interesting and I am looking forward to reading more of your posts. Thanks. Best Forex Trade Manager

I felt very happy while reading this site. This was really very informative site for me. I really liked it. This was really a cordial post. Thanks a lot!. Simple Day Trading Strategy

Nice list of bloggers. From this blog I learned more and got to know more .Thank you for sharing this great post. Invest in Cryptos


Twitter Delicious Facebook Digg Stumbleupon Favorites More