The Easiest Way to Identify Strong Stocks to Buy and Weak Ones to Sell in Intraday Trading

Intraday trading is a fast and dynamic process where traders focus on short-term price movements of stocks. To navigate this market effectively, it's crucial to have a systematic approach to identify strong stocks to buy and weak stocks to sell. This article will guide you through a detailed strategy that can significantly enhance your trading accuracy.

Understanding Key Metrics: 52 Week High and Low

One foundational approach is to look at the 52-week high and low prices of stocks. Selling stocks that are near their 52-week highs and buying those near their 52-week lows can be a strategic move for intraday traders. However, a more detailed approach is often necessary to make informed decisions. Here’s a comprehensive guide:

Post-Market Data and Market Sentiment

Upon the market’s opening, it’s essential to monitor the open market performance, specifically the best performing and worst performing stocks. After one hour of market opening, you should glance over the performance of stocks to get a feel for the market sentiment and overall trend.

Step-by-Step Market Analysis

Here are the steps to follow:

1. Pre-Opening Market Data

Review pre-open market data to gauge how the market might start the trading day. This could be on a flat, gap-up, or gap-down basis.

2. Market Opening Trends

If the open is positive, look for advance stocks that open near their highs. If the open is negative, focus on decline stocks that open near their lows.

For example, today's market opened gap-down by 1.11. We would select decline stocks with nearby lows for potential buys.

3. Daily Selection of Stocks

Select 5-6 stocks based on the overall market sentiment for the day.

Trading in Chosen Stocks

Once the stocks are selected, the next steps involve:

1. Setting Up Charts

View the selected stocks on a 30-minute charting format.

2. Defining Breakout Levels

Mark horizontal lines on the 30-minute high and low of each stock.

3. Confirming Trade Signals

Wait for the next 30 minutes to observe the breakout. A break should be confirmed by the candle body, not by the wings.

The following are some of the stocks selected using this method today:

Sunpharma HDFCLIFE WIPRO SBIN AXISBANK TATAMOTORS

Following these steps diligently can increase the accuracy of trades to over 70%. With this level of accuracy, intraday trading can be highly profitable.

Price and Volume Action Strategy

A simpler yet effective strategy is to use Price and Volume Action Strategy. Here are the key indicators:

1. Open Price and Direction

If the open price equals the high, it signals a falling price, indicating a sell signal. If the open price equals the low, it signals a rising price, indicating a buy signal.

2. Confirming Volume Gain

For the signal to be confirmed, ensure that today's volume gain is substantial, ideally over 100.

These data can be easily accessed on the following website:

Website URL

For a detailed illustration of this strategy, watch:

Illustration Video

By combining these methods with practice and patience, you can significantly enhance your intraday trading skills and increase your chances of profitability.

Conclusion: Following a structured approach to intraday trading can simplify the process and improve your overall performance. Whether you're a beginner or an experienced trader, leveraging these strategies can help you navigate the ever-changing market with confidence.

Repeat after reading: This strategy could improve my trading accuracy to over 70%, which is more than enough for profitability.

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