Day Trading 2652 THEORY OF DAY TRADING

THE MOST IMPORTANT THINGS TO TRACK IN DAY TRADING

1. Previous days range (difference in days high and days low) the most important
2. That days’ high and that days’ low at 10:15 am after the start of markets

PDR = PDH - PDL
F1 = 0.4333 * PDR
F2 = 0.7666 * PDR
F3 = 1.3333 * PDR

Opening Range = High – Low (at 10.15 AM)

If F1 > Opening Range
Factor = F1
Else If F2 > Opening Range
Factor = F2
Else If F3 > Opening Range
Factor = F3

Buy Stop Order for Long = Intraday Low + Factor

Target for Long = Buy Price * 1.005 (0.5 % gain)

Stop for Long = Buy Price * 0.99 (1.0 % Loss)

Sell Stop Order for Short= Intraday High - Factor

Target for Short = Sell Price * 0.005 (0.5 % gain)

Stop for Long = Sell Price * 1.005 (1.0 % Loss)

Source:
indiansharetraders