Strategy Examples and Tips
The purpose of this page on intraday trading is to give you an abundance of chart examples and tips from all the price action and price indicator strategies that I've detailed on this site.
If you haven't already visited those pages on my site, then you might be interested to know that I have two completely separate trading strategy sections.
One is called "Day Trading Strategies"
that details several of the price action intraday trading strategies that I've personally traded in the past.
The other page is called "Stock Market Strategies
and Techniques" on which I go over many different price indicator trading methods from which new day traders may generate ideas of their own.
I was prompted to create this part of my site, because many visitors have said the they wanted more examples of the strategies from the above pages. Please understand that these are only chart examples for educational purposes, not my actual trades.
I'll probably be adding to this page from time to time, so if interested you can subscribe to the RSS feed on the left hand side of this page. This is the best way to stay in touch with any new intraday trading examples that I'll add to this page. Another option is to use one of the many bookmarking sites to easily find this page and just come back occasionally to see if there's anything new.
What I'd also like to do here is share some miscellaneous intraday trading tips that I can suggest from various charts that I may pull up, if I think it can help you with various trading concepts or basic technical analysis. So, I'd imagine this page will eventually morph into a potpourri of different things with a goal of helping new traders with information that I could've found useful when I was new to trading.
Speaking of basic technical analysis, lets take a look at this intraday chart of General Mills (GIS) below and go over some things regarding support and resistance that you should notice when viewing charts. I'll go over a series of events that happened on this day that could've led an intraday trader to a low risk short trade opportunity.
1) The market as a whole gapped down that day and GIS gapped down with it. But, notice on the first 10 minute bar, price fills the gap. Now, although this is clearly a sign of strength, look at what happened on the following bars. Price broke an inside bar to the downside, and continued it's slide. That's GIS's first sign of weakness.
2) GIS recovers and once again show signs of strength by filling the gap for a 2nd time and this time breaking above the high of the first bar of the day.
3) Price clearly rejects this resistance level (blue). Price came close, but did not even test the actual level before creating a long red candle and closing below the prior day's low. That is a major, second and third sign of weakness for GIS. Notice how the bar as well as the next two bars, land right on support from two days before.
4) A 20 ema is a very common moving average used by a lot of day traders for support and resistance, which is why I wanted to bring it up here. If price was to break down through support it would also be trading below this average, which would be viewed as bearish by many intraday traders. The final sign of weakness for GIS comes as it does break support, offering day traders a low risk short entry with correspondingly high potential reward, since the low already made during the morning intraday trading session was way down at 35.95. Price didn't quite make it all the way down, but still could've provided a nice multiple of a reasonable stop.
Alright, so that's one way of looking at General Mills on that day.
What if you missed that last trade, but had that same chart up? Could you have used the Pullback Trading Strategy to catch a decent short trade?
We'll zoom in a bit on the same 10 minute chart of GIS.
The price decline that we covered above caused the moving averages to cross and create a new price low. Price pulled back between the two moving averages, creating a set-up under this particular intraday trading strategy.
And, the trigger for this short trade is a break of a previous candle low which occurs. Price moved lower with a decent move down to 36.10.
Intraday Trading Tactics - This article will show two ways to combine a price indicator like the MACD with naked price action to create some unique trading strategies.
More Intraday Example Charts, Strategies & Tips
September 7, 2011
September 6, 2011
August 29, 2011
August 25, 2011
If you are more interested in 'Price Action Trading' than day trading with indicators, then you'll interested in taking a look at my eBook.