3 Step Framework for Consistently Finding High Probability Intraday Trades with Ease
Align With Market Momentum & Unlock Consistent Intraday Profits
Every trader wants to find trades that can make them money quickly.
However, finding high-probability trades on shorter timeframes can be quite a challenge. Also, trading the stock markets intraday can be risky. You could lose a lot of money even if you make a small mistake.
Don't worry; in today's letter, I will share a practical framework that helps you understand the markets better so you can make smart moves, find high-probability trades, and keep risks low.
Let’s go!
The Intraday Trading Trio Framework
Here’s how it works:
Step #1: Prioritize Higher Time Frame Direction
The first step to the 'Intraday Trading Trio' is to align your trades with the prevailing trend on higher time frames.
Like how a sailor follows the water's flow and the breeze, a trader needs to pay attention to the way the market moves.
Here's how to do it:
1. Identify the trend on the daily chart. Is the market exhibiting an upward or downward bias?
2. Once you've established the trend, focus on entering trades in the same direction as the higher time frame.
3. For example, if the daily chart shows an uptrend, seek buy entries near the previous day's low, as these levels often act as springboards for price rebounds.
By aligning your trades with the higher time frame trend, you increase the probability of success, as the market's overall momentum is already in your favor.
Step #2: Analyze Previous Session Highs and Lows
The second step in the 'Intraday Trading Trio' involves monitoring the previous session's highs and lows.
These pivotal points are like a treasure map that helps you find trades that are more likely to be profitable.
Here's how to leverage them:
1. Mark the highest high and lowest low of the previous session on your chart.
2. These levels often act as support and resistance zones, where prices tend to reverse or rebound.
3. For instance, if the Nifty index rebounded from its lowest low during the previous session, that level may present a prime entry point for a buy trade, as it has already proven its significance.
By recognizing these pivotal points, you can unlock the door to consistent Intraday profits, as the market's behavior around these levels can be highly predictable.
Step #3: Leverage Intraday Ranges
The final step in the 'Intraday Trading Trio' is to understand and exploit intraday ranges.
Understanding these ranges is like figuring out what the market is saying and finding its beat and patterns.
Here's how to leverage intraday ranges:
1. Observe how prices fluctuate within the intraday range, identifying areas of support and resistance.
2. Look for opportunities to enter trades at the lower end of the range (support) and exit near the upper end (resistance).
3. For example, if you entered a long position at the intraday range's support, you could ride the wave until it approached the resistance level, securing potential gains.
By understanding and trading within these intraday ranges, you can capitalize on the market's inherent ebb and flow, increasing your chances of success.
Why the 'Intraday Trading Trio' Works
#1: It aligns with the market's overall direction.
By prioritizing the higher time frame trend, you're effectively swimming with the tide, increasing your chances of success and minimizing the risk of fighting against the market's overall momentum.
#2: It identifies high-probability entry and exit points.
By analyzing session highs, lows, and intraday ranges, you may identify regions where prices are likely to reverse or continue their trend, allowing you to enter and exit trades more accurately.
#3: It promotes disciplined trading.
The 'Intraday Trading Trio' offers a disciplined approach to trading, allowing you to avoid rash decisions and emotional biases that can lead to costly blunders.
By following a well-defined framework, you can maintain a level-headed approach, even when things get intense during trading.
I hope this helps you solve the challenge of finding high-probability trades on intraday timeframes.
If you’re just getting started with trading or have been trading for a while and struggling, consider attending my upcoming masterclass to learn the exact step-by-step process that helped me achieve consistent profitability. Click here to register.