What is Day Trading Strategy !!#DayTradingStrategy
๐ Day Trading Strategy Overview (5 Key Steps)
1. ๐ Choose the Right Market & Instrument
Instruments: BTC/ETH, Nifty/Bank Nifty, US stocks, forex pairs.
Prefer high liquidity and volatility (good for intraday price movement).
2. โฑ๏ธ Pick the Right Time Frame
Entry chart: 5-minute or 15-minute candles.
Trend confirmation: 1-hour chart.
3. ๐ Trading Setup: 9 EMA + VWAP Strategy
๐ Indicators Used:
9 EMA (Exponential Moving Average) โ shows short-term momentum.
VWAP (Volume Weighted Average Price) โ institutional benchmark for intraday trend.
โ Buy Signal (Long Trade):
Price is above VWAP.
9 EMA is crossing above VWAP.
Look for bullish candlestick pattern (hammer, engulfing).
Entry after breakout above recent consolidation or high.
โ Sell Signal (Short Trade):
Price is below VWAP.
9 EMA is crossing below VWAP.
Look for bearish candlestick or rejection at resistance.
4. ๐ Risk Management
Risk per trade: Max 1โ2% of capital.
Set Stop Loss just below/above VWAP or candle low/high.
Use Target to Stop Ratio = 2:1 or 3:1 (e.g., SL = โน100, Target = โน200โโน300).
Always use a trailing stop when in profit.
5. ๐ง Psychology & Discipline
Donโt revenge trade.
Donโt overtrade โ 2โ3 trades per day is enough.
Stick to your setup. No setup = No trade.
