#DayTradingStrategy A day trading strategy is a short-term trading method where positions are opened and closed within the same trading day to profit from small market movements. Below is a solid day trading strategy suitable for beginners and intermediate traders, along with variants for more advanced users.
Basic Concepts of Day Trading
Time Frame: 1 minute to 15 minute charts
Assets: Stocks, cryptocurrencies (e.g., BTC/ETH), forex, or futures contracts
Tools: Candlestick charts, volume, support/resistance, indicators
Risk Management: Never risk more than 1-2% of capital per trade
Simple & Effective Day Trading Strategy
Strategy: VWAP + Price Breakout
Tools:
VWAP (Volume Weighted Average Price)
Support & Resistance Levels (manually drawn)
Volume indicator
Options: RSI (for confirmation)
Setup:
Identify High/Low Points Before the Market:
Mark the main support/resistance from the previous market or the high/low of the previous day.
Wait for Price Near VWAP:
Only trade when price is above VWAP for buy orders or below VWAP for sell orders.
Look for Breakouts with Volume:
Enter trades when price breaks resistance (or support for sell orders) with a volume spike.
Risk Management:
Stop Loss: Just below the breakout candle (or above for sell orders).
Take profit: 1.5x to 2x your risk or the next resistance/support level.
Exit a portion at 1.5R, trail the rest with a moving stop.
Variants for Advanced Traders
1. Opening Range Breakout (ORB)
Mark the high/low in the first 15-30 minutes of the day.
Trade the breakout of this range with confirmation.
2. Scalping With EMA Cross
Use 9 EMA and 21 EMA:
Buy when 9 EMA crosses above 21 EMA + volume spike.
Quick in/out trades, tight stops, quick profits.
3. Reversal at Key Levels
Look for overextended moves (5+ consecutive green candles).
Wait for a doji/candle spin near resistance + RSI divergence.
Enter on confirmation candle.
