#DayTradingStrategy

#DayTradingStrategy

Here’s a concise **day trading strategy** that combines technical analysis, risk management, and key principles for intraday success:

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### **1. Core Strategy: Price Action + Volume + Key Levels**

- **Tools:**

- 5-min or 15-min candlestick charts.

- VWAP (Volume Weighted Average Price) for trend confirmation.

- EMA 9/20 for dynamic support/resistance.

- High relative volume (min. 1.5x average volume for the session).

- **Setup:**

- Trade breakouts/pullbacks near **key levels** (previous day high/low, overnight highs/lows, or psychological levels like $50, $100).

- Look for candlestick patterns (e.g., engulfing, inside bars, hammers) at these levels.

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### **2. Entry Rules**

- **Long Entry:**

- Price breaks above resistance with volume + closes back above VWAP.

- EMA 9 crosses above EMA 20 (optional confirmation).

- **Short Entry:**

- Price breaks below support with volume + closes below VWAP.

- EMA 9 crosses below EMA 20.

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### **3. Exit Rules**

- **Take Profit:**

- 1:2 or 1:3 risk-reward ratio (e.g., 30¢ profit for 10¢ stop).

- Partial profits at 1:1, trail stop for remainder.

- **Stop Loss:**

- Place below recent swing low (long) or above swing high (short).

- Never risk >1% of account per trade.

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### **4. Risk Management**

- **Position Size:**

- Calculate shares based on stop distance (e.g., $100 risk / $0.10 stop = 1,000 shares).

- **Max Daily Loss:**

- Stop trading after losing 2-3% of account.

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### **5. Best Times to Trade**

- **High-Probability Sessions:**

- **Open (9:30-10:30 AM ET):** Volatility, breakouts.

- **Midday (11 AM-2 PM ET):** Pullbacks/continuations.

- **Power Hour (3-4 PM ET):** End-of-day momentum.

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### **6. Filters for Higher Win Rate**

- **Trend Alignment:** Only trade with the higher timeframe trend (e.g., if SPY is green, focus on longs).

- **Sector Strength:** Use sector ETFs (e.g., XLF for financials) to confirm momentum.

- **News Avoidance:** Avoid earnings, Fed announcements, or gap fills >5%.