Best Intraday trading strategy – ABCD pattern on Ultratech cement. Tips, stock selection & Analysis.
Understanding ABCD pattern trading strategy:
A trending stock move from point A to point B with good volumes.
The stock consolidates between B and C. ( C is point between A and B).
The stock is between B and C.
A strong candle with good volumes (volume better than previous few candle) appears.
This strong candle between B and C with good volumes is a good entry point with a Stoploss of C.
The stock is ready to make new highs D above point B.
The breakout above point B will initiate strong buy signal.
Book profits based on RSI (9) or reversal candles on smaller time frame.
There are 5-6 Intraday Trading Strategies that actually work.
- OPENING RANGE BREAKOUT
- VWAP MAGNET (MID-DAY PULLBACK)
- ABCD PATTERN + HIGH VOLUME/ GAP UP
- VWAP FALSE BREAKOUT
- INSIDE CANDLE STICK
- VWAP TREND TRADE
Indicator that you can use:
VWAP is Volume Weighted Average price.
It is the average price of the stock including the weightage of the volume traded.
Investors can buy Below VWAP and sell above VWAP during the day.
Traders use VWAP as an trend indicator.
If VWAP is moving down and if stock trades below VWAP,
the stock is bearish and visaversa.
First and foremost in a chart is support and resistance.
- Pivot points
- Swing high and swing low
- EMA (20), EMA (50)
- Bollinger Band
- Fibonacci Retracement levels
Top traders and investors will have orders queued up in the above support and resistance zones.
Trade along the trend. Identify trend using
- EMA (20), EMA (50),
- Bollinger Band
- Pitchfork tool
Enter based on your strategy.
You can book partial or complete profits based on RSI (9).
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