Professional Day Trading & Technical Analysis Strategic System For Intraday Trading Stocks, Forex & Financial Trading.

By Tigers Publication

The book "Professional Day Trading & Technical Analysis " was created with novice and intermediate traders in mind. For day traders who wish to trade the Indian Stock Market intraday, this book is definitely worth reading. This book provides an excellent explanation of around twenty-three back-tested intraday trading tactics using actua

• Language: English
• Publisher: Tigers Publication
• Release date: Nov 6, 2023
• ISBN: 9798868975974

Book preview

Introduction

The previous strategy's entry and departure points are likewise comparable. Refer to the following chart for a better understanding. When the security trades below both average lines, it is the best-case scenario. The 15-minute HEROMOTOCO chart is the one on the previous page. The 5-EMA crossed below the 20-SMA on the opening candle of the market. It is a smart idea to go short on the stock because it is now trading below both averages.

With a buffer price, you can put a sell order below the second candle's low. Therefore, in this instance, Rs. 1980 is the ideal entry point. The day's high, or Rs. 1913, will serve as a transient barrier. Put a stop-loss order at this point as a result. Wait for a candle to close above the 5-EMA line in order to record a profit. In this chart, the green candle closed over Rs. 1940 at about 2:00 PM. In this trade, you made a respectable profit of Rs. 40 per share.

Moving Average Convergence Divergence (MACD)

The relationship between two moving averages of the price of an asset is displayed by the trend-following momentum indicator known as Moving Average Convergence Divergence, or MACD. The 26-day exponential moving average (EMA) is subtracted from the 12-day EMA to get the MACD. Then, a 9-day MACD EMA known as the signal line is placed over the MACD to serve as a buy and sell signal trigger. Histograms, which show the distance between the signal line (orange color) and the MACD (blue color), are frequently used to display the MACD indicator. When the histogram is above the base line, it is green; when it is below, it is red.

The bars get longer as the line differences increase. In any case, MACD is a fantastic technical indicator that reveals the sentiment of the market at that moment. When both lines are above the base line, traders view the trend as bullish; if they are below the base line, the trend is considered bearish. Check out the image below to see how it appears on a real chart. Trading methods: The Moving Average Crossover strategy and the MACD strategy are quite similar. Here, the MACD line functions as a shorter period EMA while the signal line functions as a longer period SMA. Thus, two trading strategies may be considered using the MACD indicator as well: one for starting long positions and the other for starting short positions.

Using some visual aids, we will go over each of the two tactics one at a time. Extended MACD Approach: Determining the market trend is critical to trading success. Buy close to the support and sell close to the resistance once the trend has been determined. Fortunately, MACD is a fantastic indicator for trend tracking. When both stripes are above the base line, a bullish trend is indicated. The entry and exit tactics are rather straightforward when using this indicator. As seen in the graphic on the following page, in a bullish trend, one should go long when the MACD crosses over the Signal line and hold until it passes below the Signal line. It is vital to note that even while the MACD suggests a buy trade, you should never purchase a stock during a bearish trend. Give us an actual chart example to help us understand the plan better. I have applied the MACD indicator to a daily chart of UPL Ltd. You might be wondering why I took a daily chart when we were talking about intraday trading. Correct? We have discussed intraday methods taking into account 5- and 15-minute charts in great detail.

Tell us about a longer-term plan of action. All I want to do is demonstrate the indicator's versatility. This indicator can also be used in positional or swing trading. Well, let's get a thorough understanding of the plan first. Both averages are above the base line on the MACD histogram graph in the chart on the following page. On the UPL chart, this is a blatant sign of optimistic sentiment. Examine the location where the