What are the best intraday techniques?
There are ’N’ number of methodologies used by each trader to identify the upcoming trend. Follow the price, it will give some hint on the next move. Most traders expect their strategies to be 90–100% accurate but they forget to consider some of the important factors such as risk-reward ratio, CAR/MAXDD.etc.. I will tell you a simple strategy where one can indetify the trend through VWAP
VWAP stands for Volume Weighted Average Price and is used to identify the true average price of a stock by factoring volume into the equation.
VWAP Can Enable DayTraders to Buy Low and Sell High
If your technical trading strategy generates a buy signal, you probably execute the order and leave the outcome to hopes and prayers. However, professional day traders do not place an order as soon as their system generates a trade signal. Instead, they wait patiently for a more favourable price before pulling the trigger.
1.If you find the stock price is trading below the VWAP indicator and you buy the stock at market price, you are not paying more than the average price of the stock for that given period.
2.With VWAP trading, you can stick to a trading strategy where you can always buy low. If you are shorting the stock, you sold at a higher price compared to the average price.
A VWAP Signify Changein Market Trends
A momentum trader, would look to buy whenthe price is going up and sell when the price is going down.
1.VWAP strategy called VWAP cross can help you trade the momentum in the market.
2.Since the VWAP indicator resembles anequilibrium price in the market, when the price crosses above the VWAP line,you can interpret this as a signal that the momentum is going up.When you find the price is crossing below the VWAP, you can consider this as a signal that the momentum is bearish and act accordingly.
A Simple trading strategy Using Vwap:
1.At 9.29 am check the VWAP ( average trade price) of Nifty futures. That you may chcek on your Charting Platform .
2.Now put this VWAP value in this Gann square calculator
Intraday Trading using GANN Square Of 9 Calculator
3.You will get Buy Sell Levels with Tgt and SL. Follow these Levels.
4.Strictly buy/sell only in the given levels .Book profits once the third target level is achieved in intraday.
Only the levels generated on VWAP of 9.29 am works best.There are many such vwap strategies and this is one among them.Following conistently can fetch good returns.
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