Indicators for momentum: (buy high, sell higher)

The concept behind this momentum trading example trading strategy is to:

 Identify trend reversals ahead of time

 Enter early with minimal risk
 Follow the trend for maximum gains.

Closing price compared to moving average

Moving average convergence divergence (MACD)

Closing price compared to the previous close (Over bought/Sold)

Rate of Change (ROC).
Relative strength index (RSI)

Closing price compared to range – market is stronger or weaker

Commodity Channel Index (CCI)
Stochastic Momentum Index (SMI).

Average Directional Index (ADX)

Volume weighted average price (VWAP)
Trading Volume
Moving Averages

Williams Accumulate Distribute

TRIX
Detrended Price Oscillator
Coppock Curve
Williams %R
Ease of Movement
Bollinger Bands
 MSCI and FTSE Russell are two companies that have introduced
momentum indexes

Indicators for directions of trends:

Trend analysis uses historical data, such as price movements and trade
volume, to forecast the long-term direction of market sentiment.

Directional Movement Index (DMI)

TrendPivots
DOW Theory
Bollinger Band Indicator
MACD
RSI
On Balance Volume Indicator
Trendlines & Chart Patterns
Linear regression

Correlation

1. Moving average (MA)

2. Exponential moving average (EMA)

3. Stochastic oscillator

4. Moving average convergence divergence (MACD)

5. Bollinger bands

6. Relative strength index (RSI)

7. Fibonacci retracement

8. Ichimoku cloud

9. Standard deviation
10. Average directional index

1. Moving Average:

11. 2. Supertrend:
12. 3. Parabolic SAR:
13. 4. On-Balance Volume:
14. 5. MACD (Moving Average Convergence, Divergence):

Calculation of Average True Range

 In the MORNING SESSION: (From 9.15 am to 11.30 am) You can catch Gap
Patterns, Opening Range Patterns, Morning Reversal Patterns and Momentum
Move Patterns.
 During AFTERNOON SESSION: (From 11.30 am to 2.00 pm) You can catch
Continuation Move Patterns, Failed Patterns, Mid-day Reversal Patterns and
Momentum Declining Patterns.
 During PRE-CLOSURE SESSION: (From 2.00 pm TO 3.30 pm) You can catch
Pre-Closure Reversal Patterns, Momentum Rally Patterns & Momentum Return
Patterns.

Below are the important trading types which can occur on any trading day:
 - Trend Continuation
 - Trend Reversal
 - Breakout/Breakdown
 - False Breakout/False Breakdown
 - Less volatility price auction
 - Random price auction

What is Market Profile Trading?

Market profile assists the short term traders to read the current market trends as it
unfolds. It considers the latest market data as it comes and provides an excellent price,
time, and volume analysis to give the best of the best information about what it wants to
do next.

Many traders don’t understand the importance of TIME on both the price and
opportunity at day trade level. In day trading, the opportunity is inversely proportional to
time.
Market profile considers Price and Volume, along with TIME, which helps to identify the
good trade opportunities in day trading.

As an intraday trader, one should try to identify the activities of big players who have
money and information power. Our job as intraday traders is to follow these big sharks
who give direction to markets.

'Market Profile' is a simple technique that helps you to identify the movements of these
big players.

What's the best volume indicator which can be used in intraday trading?

The 3 essential components of the trading are:

1. Price- it advertises all the opportunities.

2. Time- it regulates all the opportunities.

3. Volume- it measures the success or failure of all the advertised opportunities.

Volume is essential as 80% of the trading volume is given by 20% of the big players.

Volume Profile - gives a better clarity as compared any other volume indicator.

Any standard volume indicators only show volume at a time, but they will not display any
information of volume at a specific price. Volume profile shows volume at every
particular price level.

Volume Profile is an advanced charting study that displays trading activity over a
specified period at specified price levels.
Image-1: Volume profile

Image-1 shows both volume at price level (nothing but volume profile) and volume at
time level. Volume at a price gives more useful information as it provides the price level
in which big players action took place. You can see at certain price levels, the volume is
very thick, and this level indicates the accumulation of massive quantities. If a price level
shows a thin volume, then it means low volumes were traded.

Point of Control (POC)

The most crucial price level in any volume profile is the point of control (POC). It is a
place where big guys started accumulating (or distributing) their positions. Today’s POC
will serve as a stable reference point (as support or resistance) for tomorrow’s trade
opportunities.

Let us look at few volume profile charts which show the importance of POC. In image-2,
POC of the previous day acted as support, and at open it showed a false breakout at
POC level.
Image-2: Volume profile – POC as support

Similarly, in image-3, price opened above POC but failed to trade above it (rejection of
higher prices), and in the second half again it took resistance at the same level.

Image-3: Volume profile – POC as resistance

The price always shows strong reactions at POC levels, but it may not be a quick reaction
(be it acceptance or rejection).

Indrazith Shantharaj

Trader & Best Selling Author at www.profiletraders.in

Mohan Ghilley
IIT , IIM, @mgthetrader

IIT R IIM C, Intraday Trader, Entrepreneur

Intraday trading is all about finding the momentum and staying with it till it last.

In this answer I will talk about

1. How to find the momentum stocks

2. Strategy to be used in that stock
3. How to book profit
1. Lets first understand how momentum comes in the stock.

1. Momentum is the result of institutional buying

2. Relative volume can only tell about institutional buying
In my one of the post I have talked about how to identify institutional buying, but I will
explain it here again.

If Relative Volume ( volume > MA20 of volume *5 ) is there in 5 min candle, then it
can be said that institutions are present there.

Here is one such example.

2. Lets talk about how to find such stocks

Go to chartink.com
Make a screener based upon, below criteria

5min vol > 20SMA Vol* 5

Stock price >10
MCap > 500 and Mcap< 30000
5 min Vol > 200000
If enough people will comment below I will share the scanner in the comment OR will
edit this post and share the scanner.
So , if you want the scanner please do so

3. Talking Entries , Exit and Stoploss

Entry- above the 5 min candle which has institutional presence

Stoploss- Below the 5 min candle
Target- exit at 3:20 or if your sl hits

Example (same chart)

1:4 in a single day, what else do you want

One could have carried the position as well

And also one could have added to the position, but that is a different topic altogether

Caution- Manage your risk properly. You may survive one day without risk management
but you will not in the long term,

Kamal Preet Singh’s fantastic Swing Trading masterclass

Volatility ratio is one of the indicators used widely to predict the breakout

What is the best indicator for intraday trading in TradingView.com India?

You should follow price volume breakout which is known as Price Volume Trend
(PVT) on 10 min chart followed by 1 hour chart. This is also called PVT.

Another way is Moving Regression Band Breakout Strategy.

Following the introduction of the Moving Regression Prediction Bands indicator.

 Go long after the candle closes above the upper band. The lower
band (alternatively, the lower band minus the 14-period ATR or the central
line) will serve as a support line.
 Exit as soon as the candle closes below the support line.
 To manage the risk of false breakouts, a fixed stop loss is set to the value of
the support line at the time of opening a position. When the support line moves
above the position opening price, shift the stop loss to breakeven.
The same logic but in reverse applies to short positions.

As an option, it is possible to allow long entries only when the slope of the Moving
Regression curve is positive (and short entries when the slope is negative).

Model parameters:

 Length and Polynomial Order define the lag and smoothness of the model.
 Multiplier specifies the width of the channel.
As the default model parameter values, I set those that I found to provide optimal risk /
reward ratio on the daily timeframe (for both trending and range-bound market).
However, the settings are very flexible and can be well-adjusted to particular market
conditions.

Which indicators are good to use with a supertrend? How do you confirm the
readings shown by a supertrend for intraday?
In this I will debunk the five most commonly shared opinions on Price Action compared
with Trading Indicators and give traders a new perspective on the age-old debate.

1) Price action is better than indicators:-

Price action traders claim that it is a much better trading method in general. But if you
dig a little deeper, price action and indicators are not that different. Candlesticks or bar
charts are tools to visualize price information on your charts. Indicators take the same
price information and apply a formula to it. Indicators don’t add or take away anything
from the price information you see in your candlesticks – they just process the
information in a different way. This will become more apparent in the next points.

2) Indicators are lagging – Price Action is leading:-

A trader who claims that indicators are lagging hasn’t understood their true meaning
and purpose. An indicator takes past price action (the amount is defined by the indicator
setting) and then visualizes the result after applying a formula to it. Thus, what your
indicator shows you is a result of past price action.

However, a trader who analyzes pure price patterns does the same thing; if you are
looking at a Head and Shoulders or a Cup and Handle pattern, for example, you are also
looking at past price action and price has already moved away from the potential entry
point.

As you can see, both use past price information and are, thus, ‘lagging,’ if you want to
call it that. To overcome the lagging component, you would have to set your indicator to
a shorter time setting or only use a handful of past candlesticks to make your analysis.
However, the analysis becomes less and less significant the fewer information you
include.

3) Price action is simple and better for beginners:-

Is it? In trading, it’s rarely true that one thing is better than the other and it usually
comes down to how you use your tool. It’s like saying that a hammer is better than a
screwdriver; both tools work very well if you understand when and how to use them, but
neither will help you if you don’t know what to do with it.

Without experience or proper guidance, it’s very easy to feel lost as a beginner price
action trader. Trading candlesticks are not as easy as it sounds and lots of components
often get overlooked, such as the size of candlesticks, how they compare to previous
price action and the component of momentum & volatility in wicks and bodies.

Don’t make the mistake of choosing price action because it looks simple; a trader who
doesn't understand the nuances of price action trading can easily interpret charts in the
wrong way.

4) “Naked trading” is better because indicator charts are messy:-

This is an extension of the previous point. The old argument that indicator charts are
messy does not hold up. Of course, if you apply five oscillators and ten moving averages
to a chart, you can quickly clutter up your screen, but that’s not how indicator trading
works.

When it comes to indicator trading, traders usually pick one oscillator to analyze
momentum and another indicator for chart studies; a good combination is the
momentum based indicator along with a moving average.

Indicators can provide guidance and help traders make objective trading decisions.
There is very little room for subjectivity when it comes to analyzing an indicator. On the
other hand, price action traders who look at blank charts can easily feel lost, lacking the
clear reference points or tools to help them make trading decisions, resulting in acting
emotionally or impulsively.

It’s also possible for price action traders to create too much noise on their charts by
using too many support/resistance lines, trend lines and candlestick components.

As always, such an argument does not hold up when we take a closer look. Whereas
some traders feel more comfortable using indicators to take away some of the
subjectivity, others prefer price action analysis.

5) Price action is the real way of trading:-

The final argument is that “professionals” don’t use indicators. Again, it is very hard to
validate such a claim, and it all comes down to personal preferences. Indicators can save
time, and they only look at very specific aspects of a chart – momentum indicators solely
focus on analyzing momentum – to help traders process data faster and without much
subjectivity.

In our opinion, it is important to approach this topic with an open mind and not get too
carried away. It is important that a trader chooses his trading tools wisely and that he
understands the pros and cons of the different approaches. There is no better or worse
when it comes to price action vs. indicator trading. It all comes down to how the trader
utilizes his trading tools to make trading decisions.

There is a substantial risk of loss in futures trading. Past performance is not indicative of
future results.

buy low, sell high – Which strategy

 1. As a trend follower, you may not have a specific profit target.
However, not having a specific target doesn’t mean you do not set a
stop/loss target.

capital asset pricing model (CAPM)

Fama-French three-factor model (FF3FM)

help.asitbaran@gmail.com