Day trading demands quick decisions, sharp analysis, and tested strategies. Whether you’re trading stocks or crypto, certain intraday setups tend to outperform others consistently. Here are five setups every day trader should keep in their playboo
1. Opening Range Breakout (ORB):
The first 15 to 30 minutes following market opening are the main emphasis of this technique. Strong volume breakouts above or below a stock or coin’s original range typically indicate a continuation of that trend.
2. Pullback to Moving Average:
Prices frequently retreat to important MAs, such as the 9-EMA or 20-EMA, throughout a trend. Excellent entry points are provided by a bounce from these levels with increasing volume.
3. VWAP Bounce or Rejection:
The VWAP, or volume-weighted average price, has a magnetic effect. It is a bullish indication if the price continuously stays above VWAP. VWAP rejections may indicate possibilities for shorting.
4. Flat Top Breakout:
When the price strikes resistance repeatedly without reversing, this happens. Because of pent-up demand, it can increase quickly once it breaks out.
5. High-of-Day Breakout:
Momentum traders are frequently drawn to a stock that breaks its intraday high on rising volume, resulting in dramatic changes.
When paired with market context and volume data, each of these configurations performs optimally. Wait for confirmation before acting hastily, and always use stop-losses to safeguard your money.
You can trade more confidently and emotionally if you can master these tendencies. They can provide you an advantage in volatile markets if you practise and maintain discipline.