Welcome to Invest and Earn, are you looking at a simple and powerful intraday trading strategy ? in this article I’m going to present you with an intraday trading strategy or a day trading strategy involving the first 15 minutes of the trading day please be aware that this strategy does not work 100% of the time so also if you do need more help with trading or investing, then join our newsletter , we will sharing some good content on regular basis.
So let’s get into this strategy again this is for day trading or intraday trading so no matter what you are going to want to close out your position before the end of the trading day because you do not want to expose yourself to overnight gap risks alright.
Gap up opening
So below is the chart of a stock, this is the one-minute candlestick chart on trading view you can use the 2 or 5-minute candlestick charts if you prefer it’s just that for something as precise as this because we’re going to be measuring the high and the low of the first 15 minutes I want as much information and as detailed and precise information as possible and so I’m preferring to use the 1-minute candlestick chart.
But you can use the 2 or 5 if you prefer to just be aware you won’t get as much detail in the information presented on the chart and so trading view you’ll notice that it has the beginning you know the it ad this is Apple 1-minute candlestick chart on trading view and it gaped up.
And so what I’m gonna do is notice that it has the opening at 9:30 a.m. Eastern Time and then the next measurement here is 15 minutes later at 9:45 Eastern Time which is very convenient for this method because you’re going to wait until the first 15 minutes are finished and then you’re going to measure the high highest point including not just the bodies of the candlesticks but also the wicks or shadows those count as well so you’re going to decide what is the high of the first 15 minutes of the trading day and what is the low.
Again including the wicks or shadows and so you’ve got the high over here you can even draw the lines on your chart if you want to you can draw parallel lines like the high and the low of the first 15 minutes okay and then that’s how you take your long or short positions if you get a clear close okay a clear break meaning a candlestick closes above the high of the first fifteen minutes then you can take a long position and hold on all right.
Now let’s say the high of the first fifteen minutes was right here so where did it break above that yes it did it closed above did a little bit right here okay so I could have taken a long position and actually went against me a little bit there all right and so what is your stop-loss your stop-loss could be the low that you measured before remember you’re going to determine the high the highest price of the first fifteen minutes and the lowest price.
So if you’re going for a long position because it breaks above a candlestick closes above the high point of the first fifteen minutes then your stop-loss could be the low all right and so it broke above a little bit here and so I could have taken a long position and went against me but I wouldn’t have gotten stopped out because the stop Bluffs would be down here at the low of the first fifteen minutes when against me but I stayed in the trade and it did quite nicely here now what your profit target is it’s up to you.
Gap down opening
This method does not determine where to take profit but it does determine where you can put your stop-loss if you want to all right now lo let’s say what if it broke what if a candle closes below the low instead of above the high alright well let’s see what that looks like we have another chart here from today the one-minute candlestick chart and you can see that gaped down okay here’s 9:30 a.m. It gaped down and then I looked at the first 15 minutes until 9:45 a.m.
And so the range the you know the high of the first 15 minutes was here the low was here okay and so that’s where the lowest and so I start you know I wait until 15 minutes are done and then look at that it broke a candlestick clearly broke below and closed below the low of the first 15 minutes and then it did quite well after that and I could have taken profits depending on where my profit target was all right where would this work could the stop-loss have been well at the high of the first 15 minutes but it didn’t even come close to that it went down immediately afterwards because the trend clearly was down although if I hadn’t taken profits it did start to go it did start to retrace and again the stop-loss would have been here and the take profit is up to you that is not determined by this particular method you would want to determine that separately and again.
No matter what happens you would want to close your position out before the end of the trading day so as to avoid overnight up or down gap risk because this is an intraday or day trading strategy and so if you take a position and just drift sideways. And it’s almost the end of the trading day you can you can close out your position okay and what if it doesn’t break above or below the higher the low all day long let’s say it just drift sideways then you won’t take any position at all.
You will neither go long nor short that is going to happen sometimes if you don’t feel like waiting all day for that to happen you can set a time limit you can say to yourself okay I’m gonna wait for the first 15 minutes then I’m gonna establish the high in the low of the first 15 minutes and if nothing happens by lunchtime let’s say then you’re just going to close your position if you have one or you’re just not going to take a position because it is true at least in my experience not always but more often than not I do find born price action around lunchtime a lot of traders are just taking lunch off and so and then you may want to reconsider your.
You know your time frame based around that or you could just wait all day although it can get boring if it just stays in that range all day so that’s up to you how long you’re willing to wait but definitely close your position by the end of the trading day if you are a true intraday trader alright so that is the fifteen minutes range opening range method again it does not work every time I strongly recommend.
I cannot tell you what to do or what not to do but I think it’s a great idea to virtual trade at pay per trade at first for a while see if it works for you and then if you do choose to try this out with real capital real money only put in very small positions just to test it out so you don’t have any big losses.
all right so if you found this article informative and helpfull then share it with your friends and social media account and leave a comment have you tried this ? has it worked for you ? do you like this method ? do you have something that’s an alternative ? that you like better and please share your view. If you want to know a detailed overview on top chart patterns then read the article Top Chart Patterns. If you are new in Stock Market and don’t know where to start then read the article Stock market basics for beginners. Thanks for your time.