Considerations on the Intraday trading
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Let’s continue with some considerations and general points for the Intraday Trading, which is the opening and closing of a position in the same day.
- if an index or currency opens in a gap and considering that most times the same index or currency tend to close that gap, you need to find the midpoint between opening and maximum of the previous day if the gap is ascending, or else between the minimum and the opening of the previous day if the gap is descending. At this point, if the points are satisfied and the gap closed, you can open a position on that trend normally;
- if an index or currency opens in a gap we can wait the gap’s closure and immediately join in the moment that the maximum point exceeds the maximum point of the day before, and viceversa for the minimum.
- if three close and subsequent moments, for example two in the past and one in the future, are in a sequence, then you should join in immediately. For example, an index opens at 10 and by 12:00 o’clock this index is at 10,50. If ten minutes later ( 12:10 ) the value of this index is higher than the one it had at 12:00 o’clock then you should join provided that the maximum point is the higher of that day. If this does not happen, you should not enter and wait. Keep in mind that it is more convenient to join an index if the same index arrives to the maximum point from the bottom of the graph ( thus ascending ) and not from the top of the graph ( descending ).
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