#DayTradingStrategy

A successful day trading strategy relies on discipline, risk management, and a well-tested plan. Here's a streamlined overview of a proven day trading strategy you can consider. This approach focuses on technical analysis, price action and volume.

Core Day Trading Strategy: The VWAP + Price Action System

1. Market Preparation (Pre-Market)

Time: 8:00–9:30 AM (EST)

Goal: Identify stocks with high relative volume, news catalysts, or earnings reports.

Tools:

Stock scanners (e.g., Trade Ideas, Benzinga Pro)

Look for gap up/down stocks (pre-market movers)

2. Key Tools

VWAP (Volume Weighted Average Price):

Acts as an institutional average price.

Bullish bias if price is above VWAP, bearish if below.

Moving Averages (optional):

9 EMA and 20 EMA for short-term trend confirmation.

Volume Profile

Look for volume spikes at breakout levels.

3. Setup Example: VWAP Bounce or Reclaim

Entry Criteria:

Price pulls back to VWAP after a strong move up.

Holds VWAP on lower volume pullback.

Enters on a bullish reversal candle (e.g., hammer, engulfing).

Stop Loss: Just below VWAP or recent low.

Profit Target: Recent high or use a 2:1 reward/risk ratio.

4. Risk Management

Risk only 1% of total capital per trade.

Use hard stop-losses.

Avoid overtrading—2 to 3 high-quality setups a day is enough.

5. Trading Hours

Opening Range (9:30–10:30 AM): Best for momentum and volatility.

Midday Lull (11:00 AM–2:00 PM): Lower volume; avoid new entries unless trend continuation.

Power Hour (3:00–4:00 PM): Re-entry opportunity or trend confirmation.

6. Example Trade

Let’s say you see a stock that:

Gaps up 5% on earnings.

Opens above VWAP and pulls back on low volume.

Bounces off VWAP with high volume and a bullish engulfing candle.

You:

Enter long near VWAP.

Place stop $0.20 below VWAP.

Target the morning high or use a 2:1 ratio. SOL/USDT is trending up.