Episode 6 - Strategy 1 for Intraday Trading

9:30 AM Strategy for Intraday Trading

Hello everyone, and welcome back to our intraday trading series! In this blog post, I'll explain the 9:30 AM strategy for intraday trading.

Disclaimer: I am not a SEBI-registered trader. These strategies are based on my experience, so please back-test them and apply your strategies accordingly.

What is the 9:30 AM Strategy?

The 9:30 AM strategy involves using the first 15 minutes of the trading day to identify potential entry and exit points. Here’s how it works:

  1. 5-Minute Candle Analysis Start by analyzing the 5-minute candles from 9:15 AM to 9:30 AM. This includes the 9:15, 9:20, and 9:25 candles. Mark the high and low of these three candles.
  2. Identify Breakout Points Wait for a breakout either above the high or below the low of the marked candles. The first candle to close above the high or below the low is your signal candle.
  3. Confirmation Candle Wait for the next candle to confirm the breakout by moving in the same direction as the signal candle. If the confirmation candle breaks the high or low of the signal candle, it indicates a potential trade opportunity.
  4. Take the Trade Enter the trade based on the direction of the confirmation candle. Set your stop-loss slightly above or below the opposite end of the signal candle to manage risk.
  5. Select Suitable Stocks Focus on stocks with a daily price movement between 1% to 2%. This ensures manageable volatility and reduces the risk of significant capital loss.

Practical Example

  • Example 1: On January 24, 2025, mark the high and low of the 9:15, 9:20, and 9:25 candles. If the low is broken by the next candle, wait for confirmation. Once confirmed, enter a sell trade and set your stop-loss.
  • Example 2: For another stock, mark the high and low as before. If the high is broken and confirmed, enter a buy trade and set your stop-loss accordingly.

By following this strategy, you can effectively capitalize on early market volatility. Always remember to practice discipline and patience, and happy trading!

Feel free to leave your questions in the comments, and I'll be happy to answer them. 📈💼