Intraday Trading Strategies Beginners – Intraday Trading Trend Analysis


– [Narrator] Welcome to
Intraday trading strategies for beginners video series. In this series will
be learning about intraday trading strategies and short term
trading in detail. Today’s focus is on intraday
trading trend analysis. To become a successful
intraday trader it is imperative
to understand how basic trend analysis
needs to be done. In this video I will be
showing you simple tools which will help you ride such
trends more often than not. We will be covering three
important aspects in this video which are, number
one, how to determine the direction of trend, number two, trend analysis
using moving averages, and number three,
identifying when to trade on intraday basis using
volume profile charts. In case you have landed
directly on this video, do start with part one
of intraday trading
strategies series, link to all those
videos is given in the description box below. So let’s get started. So in less than 30 seconds
I’ll just explain how basic trending structure looks
like for those of you who are beginners in trading. So this is how a basic up
trend structure looks like, the easiest way to identify
up trend is to see if price is forming a structure of
higher high and higher low. In this chart in front of
you, price forms a series of higher high and
higher low structure once the initial
down phase is over. Notice at this particular
point price retraces below this pivot level and again
rises to form new highs. But it does not
breach this pivot mark that I’ve marked
in form of a line. You need to be careful
in how you read structure of higher high and
higher low as sometimes price will breach one pivot
level without violating the structure of trend, it
is important to differentiate between pivots that
are relevant to trend and ones that are not relevant
in trending structure. I will come to
this once we begin price trend analysis section. So this chart that you
see in front of you is how a basic down trend
structure looks like. Down trends are
usually more complex and this is why I have not
drawn a simple structure here. Counter trend moves
are momentum driven and hence one should be accustomed
to see such complex moves when it comes to a
down trending market. If you look at the chart,
it is not at all unusual to see such strong
counter trends moves within a structure of
lower high and lower low. Again, you will need
to ignore minor pivots and only target
major pivot points to judge trend
continuation and reversal. I will explain this
in later slides. I’ve also done a separate
video on how to identify the relevant pivot
points, link to that video is in the description box below in case you want to
understand to concept of relevant pivot points better. So this chart that you
see in front of you is the 15 minute time
frame chart of Bank Nifty. In this chart, structure
of ABC is clearly visible. For those of you who
are new to this channel, ABC structure is the
most basic price pattern that exists and it
reflects trend initiation and continuation. In this structure, down
move marks point A, swing move from point
A forms point B, and then retracement between
38.2 percent and 61.8 percent of AB move marks points C. This structure that you
see signals trend shift, and this is just one of the
ways how price starts forming a structure of higher
high and higher low. I have shared this
particular structure because it is the most reliable
in terms of risk and reward and helps trader assess how
much risk to take beforehand. I will come to application of
this pattern at a later stage, but for now keep this
ABC pattern in mind as a trend initiation
or continuation pattern. In this particular chart,
trend direction is up as per ABC as soon
as point B is crossed on the chart decisively. This is a 15 minute
time frame chart and we are using this
as a trend reference based on what we studied
in the previous video on time frame analysis. So let us now move to a
lower time frame chart and see how same
trend appears on it. Now this is the same chart
on a five minute time frame. At this point on the chart,
trend on 15 minute time frame turned higher, always remember
that trend which is set at a higher time frame
invariably leads to trend on a smaller time frame. If trend on higher time
frame does not continue then lower time frames
will not give you any entry opportunity and will
save you from many whipsaws. This is the main advantage
of trend analysis using multiple time frames. The most important aspect
that you have to remember here is that structure of
higher high and higher low is foundation of an up trend,
and structure of lower higher and lower low is
foundation of a down trend. When you combine these
foundations across two or three time frames
for trend analysis, results can be pretty powerful. When doing simple
trend analysis, stick to two time
frames only initially. This will help you grasp
how price moves across different time frames. Now, once you know
the bias of trend, you can then use suitable
strategies to ride that across multiple time frames. Now, how to enter and
exit stocks along with intraday strategies we will
be covering from part six once we finish this video
and video on stock selection. So let us now come to the
role of moving averages and trend analysis. Now it’s true that moving
averages work very well on higher time frames,
but they’re usefulness on lower time frames
is no less as well. Moving averages however
should be used to assess direction of trend on
shorter time frames, they should not be used
to enter or exit trades. Now one can use a
combination of two averages or even one single average,
that totally depends on trader’s preference. In this chart I have marked
out 30 period and 40 period simple moving average for
trend identification only. Chart time frame is 30 minutes. So whenever 30 period average
is above the 40 period average trend is up, and whenever
the 30 period is below the 40 period trend is down. Again, we will look at
implementation of this when we move to
strategies section. But the whole idea of moving
average is to attempt to go long or short when trend
is clear and short term averages are either
above the longer averages or below the averages, I
hope this particular point is clear. Now this is the previous chart
on a five minute time frame, and I’ve used the same
moving average combination, that is 30 period average
and 40 period average. Now one way of using moving
average for trend trading is to identify periods
on small time frame where price and averages
show temporary weakness. It is during these phases
that one must get ready for trades in market. Here you are using trend
from higher time frame as a reference and
you’re looking to enter on temporary weakness on a
shorter time frame chart. Essentially you’re
looking for a pull back on lower time frame while
the trend remains strong on a higher time frame chart. Now, all these markings
that you see in front of you are phases on five
minute chart where price and moving
averages are moving lower and showing temporary weakness. Now during the same
period of this chart, price and averages was
suggesting trend to be up on a higher time frame chart. Now, it is these phases
that I have marked where you have to look for
the next trade in the market. That is when weakness
prevails on short time frame but trend prevails on
a higher time frame. So trend analysis as
such should involve multiple time frames,
this is the only way you will align with
higher time frame traders who typically give
direction to price and form a sustained trend for
you to profit from. I hope this is clear. Now there are two draw backs
of using moving averages. Number one, moving
averages do tend to lag, and number two, there are
times when trend through moving average analysis
is not entirely clear. In the chart in front of you
I have marked out two phases. In the first phase you see
price trends very clearly, whereas in the second phase,
price and moving averages are overlapping so often
that trend identification gets difficult. Now this is a very
common problem and
traders often abandon moving averages after such
phases since this leads to whipsaws and more draw downs. Instead, what I would suggest
is a multiple time frame approach to deal
with such situations. So whenever you spot
such a situation where trend on shorter
time frame is whipsawing and is not clear, just switch
to next higher time frame to assess the trend strength. So in the chart in front
of you, trend is very clear in this segment, but when
it comes to this area, trend is not at all clear. Let us check this on a 60
minute time frame chart just to assess the broad
direction of trend. The current time
frame is 15 minutes. Now this is the same chart
on a 60 minute time frame, and while you get multiple
price and average crossovers on 15 minute time frame chart
like we saw in the last slide, on 60 minute time frame
you just get one crossover while price is still
above the moving averages. Therefore it is always better
to move to higher time frames for trend analysis if
short time frame gives you conflicting signals. Now when lower time
frames are uncertain about direction of trend, move
to higher time frame to assess the
direction of trend. Always remember that
inter time frame analysis is the most vital thing
along with volume activity for short terms traders. Your main aim is to align
with higher time frame traders and then attempt to
profit from the trend. Short term traders
generally ignore trends and this approach is not ideal. If you align with trend
it becomes much easier to plan for trades, that is
in terms of entry and exit. Now before you start
using moving averages you have to learn to spot
weak trends and strong trends. Now weak trend is when shorter
average moves above and below longer average and this
continues for quite some time. Now these are the phases
where one should be away from the
instrument and wait for clear trending
structure to emerge. This will take some practice
but start analyzing charts as trending and
non trending charts and then keep them
in a watch list. We will be seeing more
of this in the next part, where we’ll discuss
about stock selection. So in the chart in front of you, while price has broadly moved
up, moving averages have crossed so frequently that
clear direction of trend is uncertain, such structures
are weak structures and you must stay
away from these. Now this is an example
of a strong trend and these are the phases
you should target. Remember, you are day
trading here and hence strong trends would
typically last for five to seven days only,
and within these phases you have to execute the trade. Clear trending structure
is where shorter average is clearly above or
below the longer average, and this is clearly
visible on the chart. Now the more you
practice to spot this the more easier it
will get with time. So this chart in front
of you is much cleaner than the one we saw
earlier and trending phase lasts for 15 days and
this is where you have to execute your strategies. In my opinion, identifying
short term trend and staying with it is
the single biggest factor that will help you becoming
a successful intraday trader and short term trader. Always begin with identifying
the path of least resistance and then apply your strategies
in order to profit from it. So let me now bring you
to volume profile chart. Now this is one of
the most useful tools in intraday trading, and
make sure you know how to use these. In the last slide we saw how
trending structure looks like, and in this particular
section we will see when to try to spot that trend. For those of you who don’t
know, volume at price chart plots volume on a vertical
axis which gives you a visual way to see at which
levels maximum volume activity has happened. Now when volume is
concentrated at one place it is referred to as
a high volume node, whereas area where there
is little or no volume activity present it is
referred to as low volume node. So in the chart in
front of you there are two volume profiles sub
charts that I’ve posted, left one is where volume
is all over the place, whereas on the right side
you see volume activity that is skewed, where you
can spot a high volume node and two low volume nodes. As an intraday trader always
remember that you should be targeting trades when price
moves from high volume node to low volume node. Now this is where maximum
momentum is present and hence you should
participate in those phases. You must avoid participating
in volume structures which look similar to the one
I have posted on this side. Let me explain this
in more detail. So this chart that you see is
volume profile with the price. In this particular chart
you can clearly see that volume across most price
levels is equal and spread out. So there is no volume skew
that you can spot in here. If you look at this
top end of range, clearly a lot of a volume
activity has taken place, and if you look at
this bottom end range you can again spot
significant volume activity. Whenever you spot such a
chart, always remember that any wide range candle on
up side will be sold into and any wide range
candle on the down side will be bought into. Look at all these
wide range candles, all these candles have been
nullified over a period of time. So as an intraday trader
and short term trader, you should avoid such
stocks where volume activity is evenly distributed. Trend will only develop
when price will move above or below such high
volume node regions. Until then it’s better to
be in other instruments or wait for breakout above
or below these regions. So this chart that you
see in front of you is the kind of chart that
intraday and short term traders should prefer. Now we all know that price
moves from high volume node to a low volume node where
it either forms a balance and forms a high volume
node, or it moves back again to the preceding
high volume node. In this particular chart,
price has moved from a high volume to a low
volume node and then again gravitated to a
high volume node. If you look at price, it
swings from high volume to low volume and then
again from low volume to high volume node. Now price swings on
both these occasions are momentum orientated
and has a clear structure. So unless a swing is
momentum orientated, profiting from it as a short
term trader would be difficult, and hence from now on only
target such structures where volume skew is clearly
visible and then wait for trending structure to develop. I hope this particular
point is also clear. So this is another chart
where price moves from a high volume node to
another high volume node, where again, price
rotates and consolidates. As price moves from
high volume node, look at how momentum picks up
and price is pulled towards this high volume node. So this is the main crux
behind intraday trading. Spotting trends and knowing
when to ride those trend till it ends. Also this remains one
of the main reasons why intraday trader needs some
flexibility in terms of being open to keeping positions
for one to three days, as short term trend typically
lasts for that duration. Moving with such trends will
only improve profitability and hence one must
consider this. So there are three
essential steps one must consider
while analyzing trend. Number one, keep note of
structure of higher high and higher low to assess
the direction of trend. Use multiple time
frames to do so. Number two, keep a tab
on moving average trend and target only those stocks
where trend has been clear in recent times and is clearly
evident with moving averages across multiple time frames. And number three, when
initializing a trade, keep in mind where price is
with respect to high volume node and low volume node. These three steps will ensure
you would trade with the trend and in the path of
least resistance. Unless and until you
operate within a framework making sense of trend on
smaller time frame charts, will always remain random. Do not forget this aspect
of intraday trading. So this is why I have given
out simple three steps to analyze trend while
trading over short term, and we will be seeing
how all these concepts that we have discussed
from part one to part four will be helpful while
executing trades once we begin the strategies
section from part six. So kindly consider
hitting the like button and sharing this video
if you like the content. In case you have any doubt
about what I’ve shown you do leave me a comment and
I will get back to you as soon as possible. So thanks a lot for
watching this video, guys, take care and be safe. – [Narrator] Click on the
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63 thoughts on “Intraday Trading Strategies Beginners – Intraday Trading Trend Analysis

  1. In this part, I show how Trend Analysis plays a crucial role in being a successful Intraday trader. I have covered how to analyze Trend, Trend Strength and how to specifically identify Trending phases using Volume Profile in Intraday Trading.

    Thanks for watching Guys.

    Be Safe & Tc.

    ST

  2. Your way of teaching is very good.. Soon this channel will going to be one of best channel among share market education…… So please keep uploading such type of videos.

  3. Sir what you are teaching is perfectly safe and high probability trade entry .if we trade with option it will be more safer if stoploss triggers with minimum loss we can exit and if it goes as we think than we will get very high profit.please make one video on options trading.its a request.

  4. Eagerly waiting for the next part …Lol i dont think i will need anything more at the end of this series …Truly amazing …..I still dont know what inspired to give away so much free of cost 😁

  5. Sir, would you like to set up a University of Technical Analysis in India? πŸ™‚
    If yes!!! Then go ahead. Your University will become worlds #1 University on Technical Analysis in a short span. #Only you have to train the students. 😊
    What a superb Video. Its good that you clear the importance of Time Frame while analyzing of trend. I normally look at 240 minutes or 4 hrs, TF to look out for trend, then plan my trade on 15 minutes or 5 minutes TF for day trading.
    Multiple TF analysis is must while trading.
    Moving averages does help sometimes, but do confused in consolidation. But yes, HTF will clear the doubts in our mind.
    Volume is again help you to identify some pause of activity or weakness in trend. Strong trend must support the volume.
    # I am addicted to your videos. πŸ˜ŠπŸ‘
    Thank you. πŸ‘πŸ‘πŸ‘

  6. I like your point to point expanation.please clear my doubt that B Can be retracement of ABC pattern 38.6-61.8.on Fibonacci, means if it is till 78% we can not consider it as ABC pattern.please correct me if I m wrong. what should be the target to consider?

  7. You are a great artist…!
    Though Intraday concepts are difficult to explain, you shaped it in a nice and simple manner….
    Kudo's to you man……πŸ‘πŸ™

  8. Yet again amazed bro πŸ™‚ by the content and the way you delivered it, trust me you are encouraging and making new bees to stick in market, as somebody suggested, you should seriously consider having price action training institute in india, I came across with only 2 top class price action masters in india and you top the list πŸ™‚ trust me again bro, you are selfishnessless and generous soul, who is educating us with such strong content for free, I MEAN EVERY WORS, people don't understand how strong content it is and others charge bomb amount, god bless you with loads of happiness and health bro, stay blessed πŸ™‚ eagerly waiting for upcoming video πŸ™‚

  9. Thanks Sir for this excellent video. My doubt is how to identify the trend while the volume profile is being developed. Should we do this analysis end of day for the next trading day.

  10. Thank you Sir. I can only say this because I don't have any other words to tell you regarding such a informative vedio. Know my day trading setup is building slowly. My TFs are fixed , My MAs are fixed. I use 20 day and 40 days MAs. Some doubts on VP.. For how many end of days we should look for VP ?. Or Should we look for building VP for the day ?. Please clarify.

  11. Dear TradeWithTrend, as always clearly explained. Waiting for more videos. But I have some queries regarding Intraday Trading. Where we interact one on one, and that would be very helpful for me and all traders.

  12. Very nicely described the price action with moving average and volume analysis. Please also tell how to analyse and trade in NIFTY only.

  13. Good morning Sir .I salute your dedication and sincerity towards giving such valuable information to small traders such as us ,who cannot effort higher fees.hats off to you Sir .my question is how to filter stocks that are moving above 30 ,40 moving averages to make a watchlist ,any website .Also are volume node charts available on free sites such as investing.com ,as I frequently use for analyzing my charts.Thanks and waiting for your valuable reply

  14. Did not get the volume part clearly as you said high volume is good for taking trades if its more then average volume in earlier videos

  15. Thanks for this videoπŸ™

    When I started, I was of the opinion that markets are uncertain and anything can happen anytime. Hence, I traded based only on intraday charts without relation to previous trend. It was very difficult to objectively trade. Now as a die-hard member of this group, started looking at overall trend as well. But I find it little difficult make peace between previous trend and future uncertainty. Would be grateful for any advice on trusting the trend.

    Thanks for your time.

  16. Request you to share a video on how to trade intraday by combining Open interest,Volume profile & VWAP.Also on how to analyse & use Open interest data/build up EOD & during live market.I feel this can be a good combination for intraday/shorterm.

  17. First of let me thank you for effort and providing us the information about one of the toughest part of trading in such a simple explanation. You're approach of explaining this in step by step manner is WONDERFUL. I've no where found this kind of information laid out so nicely. It cleared out many doubts.

    However I'm stuck in trend analysis in multiple time frame.

    1. How much data(months/days) we need to trend analysis?

    a. Daily Chart – ?

    b. Hourly Chart – ?

    c. 15 min Chart – ?

    I request you to clarify the above doubt, it'll immensely help me. Thanks.

  18. Sir thank you for all these imformative videos, always waiting to learn something new from you.sir,one request plz can u make a tutorial on correlation between different market segments,eg equity vs commodity vs gold vs crude etcπŸ™

  19. Very informative and professional video. If you can make a video for placing stoploss in intraday, it will be really great. Placing stoploss and take profit with favourable ratio is really tought. If we put too tight stoploss it hit most of the time and if we put large stoploss it compromise favourable risk to reward ratio. At the end retail trader end up loosing money.

  20. Nice explanation of volume profile πŸ‘
    But my question is in intraday situation volume profile is on processing
    So how can anyone expect from one major portion to another major portion will develop within some time ?????
    You are explaining nicely but after market is over and volume activity already done .

  21. Fantastic stuff, You are the most prolific and Intelligent teacher I have ever come across on You Tube. Very clear and precise. Please do not stop teaching us, God bless.

  22. You are awesome, I am keenly working on Intraday videos and eagerly waiting for rest of the videos to come to start. you have vast knowledge on all the modes of trading (investing, swing and Intraday) and giving knowledge to every one without expecting any thing, I am not sure why as many ( almost all) want to mint money on training and strategies. My request is to you are making people to understand but please help us to be in profitable as well. Thanks a ton.

    You have started Mutual Funds video but not sure you are giving least priority as didnt see further videos as its more than three to four months, I know how busy you are and working on so many things on video part and also i can understand how you are put up on your personal front though.

    Great Job on educating tons of flocks and have a long live.
    Naveen

  23. sir i am not able to know the logic behind moving averages because every one using different moving averages so some using 50 sma,some 50 ema,or 100,200 and so on .and market also respect those levels so what should we consider before applying any moving averages?cause as we know if we will put any higher moving averages than it will confirm trend at the end of the trend as a short term trader we have to catch those moves please define.thank you

  24. Hi Sir , Can you please let us know where to get volume profile chart for intraday (1 mints,5mints,15 mints,1hrs) free of cost and please confirm if tradingview.com providing this .

  25. Link To Intraday Trading Strategy Videos https://www.youtube.com/playlist?list=PL9myHLrE5hrOT8O9g-f8kb575b-KTsq0B

    Subscribe To Our Channel https://www.youtube.com/c/TradeWithTrend?sub_confirmation=1

    Telegram Broadcast Group https://t.me/TradingWithTrend

    Check Out all other videos at https://youtube.com/tradewithtrend/videos

    Kindly hit the Subscribe Button & Bell Notification Icon.

    Thanks For Watching Guys. Tc & Be Safe.

  26. If one wants to use only one moving avg., can He use Hull moving avg Or Weighted Moving avg as these follow price more closely ? If yes, what period HMA or WMA for higher and lower TF's ?
    Also, you recommend RS indicator in any videos, but it is not available with discount brokers web platform. Any alternatives without compromising accuracy significantly ?

  27. Hi Sir Thanks a lot for your videos. As a day trader you're saying that it's not mandatory to trade daily. I realised that what you're saying is right. Mostly I lost my money in choppier market. Please explain how to identify and avoid such conditions so that it will be helpful for all new traders.

  28. πŸ“‰πŸ“ˆπŸ“‰πŸ“ˆπŸ“‰πŸ“ˆ
    Expecting more videos on finding tread in short time Frames and entry and exit in fast momentum
    #peace

  29. Every Video is a gem, so much to learn and explained it so well. Thank you for taking out so much time and efforts to help several people. Better than lot of paid training and workshops.

  30. This is the best content on youtube to learn trading on DIY basis. Gold mine. Why don't you capitalise is by charging some nominal fee. for entire set of videos. Happy to pay a reasonable fee for such high quality content.

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