In Simple words Day trading means Buying and Selling of Financial Market security within given time period for the day means we have to close our trading position within our trading session expiry
for the day otherwise our broker will do it automatically during the end of trading session for us Along with it Most of Brokers provide high leverage facility to its traders or clients by which traders
has full potential to use high leverage as a good helping hand for our day trading strategies to make a great amount of profit for the day but on the other hand Investing or Trading with high
leverage can be can be harmful too if we don’t have idea that how to use it properly in trading. In this Topic we are gonna Cover Day trading Strategies,Day trading Patterns, Day trading Candlestick
Day trading can be done almost in all trading sectors of
financial market like Forex market, Stock Market, Commodity market,
Crypto Currency Market,option trading etc.But there is some
difference between Stock Market Trading and Forex market trading
Session Timing lets have a look on that.
- US Stock Market: if you are looking for investing in stock market or Trading in stock market for short goal or long goal then this market is really a right place for our selection. Its one of the biggest Stock trading market in world share market.US Stock market is limited for day trading and it almost open for 6.30 trading hours. According to current market structure the opening time for US Stock Market is 9:30 EST and Closing time is 16:00. (Calculated according to EST which is Current Situation) NASDAQ and New York Stock Exchange NYSE are the two most popular stock exchange in US Stock market and the popular US Stocks are AAPL,Amzn,tsla,MSFT,NFLX etc.
- Indian Stock Market: if you are looking for investing in financial market then Indian stock market is also a great market where we can do Day trading in so many differ stocks, the two most popular stock exchanges for Indian stock market are NSE and BSE. Bombay Stock Exchange, National Stock Exchange of India. According to the IST calculation Market opening time is 9:15 AM and Closing time of the Indian Stock market is 3:30 PM.
- Forex trading: Investing or trading in Forex trading market is much differ than the stock market, especially when we talk about day trading if you are looking for day trading in forex then its a 24 hour open market for trading you can come and join the market anytime and there is no restriction or limited time trading period for the day for trading in forex market.Like Shares or Stock market in forex we have a 5 days opening market in a week.For day tradingin forex its important to pay attention on trading sessions because if you are looking for the movement then good trading session idea should be there at first.
- Crypto Currency Market: Crypto trading is a 7 days open market for trading and if you are a day trading lover then this is also a good market for you because movement is really good in crypto especially when there is a solid momentum in market like uptrend, downtrend etc.The two most popular crypto currencies are Bitcoin and Ethereum and traders like these two options mostly to do trade in crypto market. Along with it there is a big list of crypto currencies in market and those can be traded as well along with Bitcoin and Ethereum.
- Know Your Character Learn About Yourself: Knowing ourself before entering in day trading will be really very prominent for us, There is no doubt in it that all of us are here toearn money from this market. Our first aim is always to watch ourself as a successful trader in this market. But according to me so many time I have seen that mostly trader’s think that day trading is a quick money making agenda in financial market which is really wrong, traders start to forget about their main niche about the trading and they start to focus on very short term trading to make money which is not good at all. Its our duty to check always that what kind of trading style suit to us. Here I want to tell everyone that a trading strategy especially which is day trading based will not be applicable on all traders. There are so many things which we have to keep in mind when we are entering in Day trading business. It does not matter we are in forex, in stocks, or in crypto market first of all it should be our first priority to check that what kind of trading style suit to us and according to that we should take our decision. And if you are thnking that making money in intra day trading will be really easy for you then its very wrong approach here. I think our trading selection should be according to our taste and trading character. First of all we should give proper time in our training and after that it will be easy for us to decide that we need a day trading system with a short term goal or a long term trading system.
- Trading Patterns & Trading Strategies:So now we are gonna talk about one of the important subject of this article which is Trading Patterns and the Trading strategies. Here we have to understand that Stocks or Forex Trading Patterns play and very important role to understand the next movement of the market. There is a saying in Financial market that “Trend is our Friend” but we have to also understand that when market trend can goes against us. Because when there is a reversal market situation Trend is not more our friend any more.We like to read it everywhere that Trend is Friend but we should also pay attention that when trend can be wrong for us. And for that first of all you should have a good understanding and experience of market patterns. So first of all we will talk about the trading patterns and in the next Section which is Trading Strategies in that I will let you know that how to use these patterns in your buying and selling.Top 3 Trading patterns for traders given and described as below.
- Market Cycle Pattern & Strategy:
Market Cycle Pattern is One of the very popular pattern in the market but still so many traders are not
aware with this pattern, this is a situation when one wave is gong up from A to B and then coming back down from B to C (AB=BC) even more down which indicate a downtrend signal on chart,as we know that most of traders just think that a uptrend or a downtrend is only about buy and sell, actually 99% of people enter very late in the market. Do you think that a big
player or a big whale would like to buy on higher prices? Never a big player like to buy on a very lower price and sell the item on a higher place. First of all you have to think like an businessman here. And the main question is who drive the market?
We? Nope this is a market of big whales or big players and they drive the market fully. We are just the retailors who mostly try to go against the big players. As above shown in the chart a very clean higher high and higher low sequence which is an indication of uptrend. So for a common man or
for us its a uptrend situation when we are getting a good sequence of higher high and higher low.
But for a big player it can be the ending point from where big player can start to sell in the market.
This is a very common mistake which mostly retailors do in forex, stocks, crypto, commodity. Bitcoin is the big example in front of us everybody bought on $20,000 levels and what happened
after that? A BIG CRASH… Make sure that you have a PLAN B always when you are in this situation because that can help you to make a sell in this situation instead of holding your trades
on wrong side. In Trading Strategies section I will let you know that how to use this pattern for your sell in stocks, forex, crypto or any kind of financial market so just read the article fully or just scroll
down the page to see the Strategy Section.
- How to use this Pattern as a Strategy?
Whenever there is an end of strong bully wave, then this is a surety that we gona see a Market Cycle
pattern in the market especially when a down trend is going to start. So now question is how to use this pattern as a sell pattern and when to sell. Thre are couple of things those you have to always follow before making a sell are given below.
- Always Wait for Lower High and Lower Low Sequence.
- Focus on Support and Resistance Theory
- Wait for Reversal only after that think to sell
- Use Candlestick like One single Green Bar as your extra confirmation
As shown above in the graph you have to keep so many things in mind to make a proper sell during this kind of chart pattern. When you will start to combine all these things together you surely gonna
see a very good pattern for yourself as selling. On the other hand its important to understand that so many time these patterns can’t be same at all. Some one can be simple and some of them can be harder to understand that’s why mix all these stuff to get a nice confirmation at the end for your sell.
For stop loss always go with the your resistance areas and Take profit level can be adjusted with 1:1 or 1:2 depend upon your skill or market reversal within the confirmation of one single red bar concept. You can use One single red bar for the reversal confirmation.
- Big Player or Big Whale Pattern:
This is another excited thing to share with all of you which is an Big Player Pattern. This is one of the
simle price action way to judge the next movement of the market trend, and it gives you a very good
indication that what kind of pattern BIG PLAYER is making right now in forex, stocks, crypto, commodities etc. If you are a trend lover then this is really a very good knowledge based information
for you. Now the question is when we will able to see a Big Player Pattern? It actually form when we see changes in current market trend. For example if market trend is going up but suddenly we see that market is coming down and its breaching the higher high and higher low area then mostly this kind of pattern fill up and it give us a very nice idea about the next market movement.
As above in the picture shown that when a big player start to change the direction of trend then this kind of pattern pop up in front of us mostly. This is a down trend situation when trend is changed totally and now market is in seller control. According to the above chart you can see that Big player pushed the market down and after that we had a short term upside movement. So many traders think
that this is a right timing to buy but soon you can see that how big player again made a market of sell its essential to check always that in which zone we are, if we are in big player zone which is selling right now then better to avoid buy at the moment. But if once we have higher high and higher low sequence then for sure we can think about a buy after that depend upon the strategy and market Sense. Big Players always do opposite of our thinking when 99% people will buy they will sell and
when 99% of people will be sell they will buy. For example Bitcoin above chart is a clear example when market is going down we all (99%) expecting bull run and starting to buy on every downside movement but see what happened. They are pushing back our efforts everytime and market is going
more and more down.
- How to use this Pattern as a Strategy?
Only a few percentage of traders know about this pattern in stocks, forex, or cryptocurrencies. We have to make sure that whenever there is a big fall or big upside movement then it can lead to more pressure in market toward the flow. For example as in last paragraph we have read that during downtrend after at big dump always wait for a reversal before selling, here Double top, Triple top these pattern will be really helpful to understand the next impact of whale in stocks or any financial market. On the other hand we can concentrate on lower high lower low sequence once again which can give us a smart thinking to understand the next run. During a downtrend or uptrend after a big dump or pump mostly we see a phase of sideways market only after that we see another big impact on chart or in financial market. Some of the important key points given below those can give you a lot of help to understand next move are given below:
- During a downtrend wait for Double top, Triple top pattern.
- During a downtrend wait for Double bottom, Triple bottom patterns,
- Don’t go against the trend if possible avoid counter trend and if you have a good skill you can go short with counter trading.
- keep focusing on that big dump or pump area that is your big player.
- Breakout Trading Pattern:
Breakout Trading pattern can be seen in so many ways but when it start to form during an uptrend or in downtrend then mostly it helps traders a lot to making a large amount of pips. In simple words when market price starts to break any Major or Minor Support and Resistance area that time we can say that now we have a breakout situation avail in front of us.This is a theory of Support and Resistance, during uptrend if price is showing us a breakout then it means Resistance area is became now Support for us.Same like that in Downtrend if Market Price breaks through the downside support area then that specific area will be called as our Resistance for next time. Furthermore A strong trend always help traders to go with the powerful flow of the market. Breakout trading pattern is a great sign of a fresh trend it gives us a very good understanding of the market trend momentum. Only in sideways market condition we may face problem with breakout trading pattern but in other two market pictures uptrend and downtrend this pattern is best for traders.
An example of breakout pattern can be seen above in the given chart picture. As we can see above this is GOLD CHART and right now its making a very good upside trend and already running in
a powerful uptrend situation. In chart almost 1245 was the price where we had seen an breakout in GOLD. But one thing is really prominent that a breakout means not a buy or sell immediately after the breakout, the example is about an uptrend and we seen that a reversal was there after that breakout and so many time its possible that we can see a rebound stage also at once after that
breakout. If once we have a good support above and again market is getting momentum then it will
be a right time to think about entering with our buying. Overal Breakout Pattern has some advantage and disadvantage so depend upon trader’s how he use his skill to perform with this pattern.
- How to use Breakout Pattern As a Trading Strategy?
Trading with breakouts a very good technique but first of all we need a good understanding of the
market to understand a nice uptrend and downtrend situation because as we had discussed earlier that in sideways market this pattern can be fail, so avoid trading with breakouts in sideways market. For using this pattern as a trading strategy we have to just pay attention on the support and resistance base. For example if market is going up and breaks through any important resistance then its essential to wait for reversal and if market is again making a good support above of that breakokut area it means that now its a time to play a buy entery. There are so many times in market when we see that traders start to buy at once after that breakout they are always in haste and don’t follow the
proper patience which cause a heavy loss to them because its not a surety that we gonna see a uptrend after that breakout market can reverse too and even it can breach all lower low’s on chart. The uptrend example is given above in last topic just see how market reacts and how dangerous it can be for traders if they don’t have any proper sense to use this pattern as a strategy. Let me discuss some of the important keypoints with you those are very essential during use this pattern as a strategy are given below:
- During an uptrend pay attention on HH HL Series to understand the strength of UP Trend.
- During an downtrend pay attention on LH LL series to understand the strength of Down Trend
- After that Breakout keep patience wait for a proper base establishment before buy and sell.
- Always check next level time frame to understand the actual trend, for example if you are using breakout trading strategy in daily chart then you have to check weekly chart also because if weekly chart is not strong then there is a possibility that you we can see a rejection in price but if weekly chart is so much strong then it would be a poweful confrmation for us to see a powerful movement in daily chart as well especially after that breakout.
- Avod Trading in Sideways market that is not suitable for Breakout Trading Strategy.
- One Single Green Bar & One Single Red Bar Candlestick Pattern:
Candlesticks play an very vital role when we talk about the trading confirmations and all we know that we should never do trade with one single trading confirmation that’s why candlesticks are important to understand for our buying and selling entry confirmation. In this topic I gonna share
two most powerful candlesticks shapes with you those will help you a lot for your buying and
selling confirmation and this candlestick knowledge will be much differ from other candlesticks
information, lets start.
- One Single Green Bar Candlestick Pattern & Trading Strategy:
First of all I want to tell everyone that in sideways market you will not be able to get some handsome
signals or confirmation from this candle but if you are trading with trend then for sure it will be
a helpful confirmation for you. Now listen One single Green bar candlestick situation appear when
we have a downtrend market example given below:
During an downtrend mostly we see a lot of red candles and some of them are green candles right? So in this one single green bar candlestick strategy we have to just concentrate on one point which is confirmation or signal, see above as shown in picture this is a series of candlesticks where you have judge the confirmation on the price movement and candles.
For example as shown in the second picture last couple of candles will be read after that one green candle will appear this is the time when you have to check for the next candle movement after this just concentrate on next candle which should be read and if red candle is crossing or breaching the lower price of the green candle then it will become our sell confirmation that’s it. Means only single green candle between of so many red candles after couple of read one green candlestick will appear and next candle should be red and should cut the lower body area or price of that green candle it will become our sell confirmation during an downtrend. Actually its an hint wan’t say that this is a 100% sell signal.
- One Single Red Bar Candlestick Pattern & Trading Strategy:
One Single Red Bar Candlestick Pattern works opposite of One single green bar candlestick chart
pattern in this pattern we have to just concentrate on one single Red bar instead of one single green bar, because in this situation the trend of market will be up and we have to check that when we are getting one single red bar on chart after couple of green candlesticks. This chart pattern is not very
useful in sideways market as same like the green bar pattern but in trending market when market is up RED BAR candlestick confirmation will be very much helpful to understand the next move. Lets talk how to use this strategy as a confirmation.
As above shown in the chart during uptrend just wait for couple of green candlesticks and after that there should be one Red candle there on chart and after one red candle if another single candle is cutting or breaching the upper body of the Red candle then it will become one of our buying confirmation in chart. Please keep in mind that you don’t have to use alone the bar confirmation only for the buy sell you have to use this candlestick signal as your second or third confirmation in your trading. Following these signals blindly would bring only heavy losses in trading.
Final Words: I hope that you have enjoyed the study of differ types of price action chart patterns those are essential to understand especially if you are thinking to become a successful forex trader in this industry. It does not matter we are doing trading in stocks, forex, cryptocurrencies, commodities, the main element of success is always knowledge. Making this topic as a channel to tell all of you guys that the real understanding of market is more important than the use of indicator’s, tools, etc. Until we don’t have proper sense that how big players are behaving in market till then it will not be very easy for us to understand the real concept of buyers and sellers in market. Thanks for reading once again.