One of my favorite day trading strategies uses the previous day’s trading range to give me 3-5 high-percentage trading opportunities every day.
I call this the inside day trading strategy, and all you need are some simple tools and a simple plan of attack to make some easy profit with this day trading strategy.
First thing I need is to find the previous day’s trading range. To do this I set my computer clock to Eastern Standard Time, I open my charts and I look for the high of day and the low of day from the previous day of the week. In addition, if it is a Monday, I use the trading range from Friday, rather than the short session on Sunday night. I have developed a specific technical indicator called the ‘JJ-Major Swing’ to help me locate the trading ranges from one day to the next.
Once I find the HOD and LOD from yesterday, then I need to determine where I am in relationship to these highs and lows. Ask yourself the following questions:
- Am I above the range from yesterday?
- Am I below the range from yesterday?
- Am I in the middle of the range from yesterday?
- Am I trading around the HOD from yesterday?
- Am I in the middle of yesterday’s trading range?
Now that I know where we are in relationship to the previous day’s trading range, I can make some educated decisions in my trading. Depending on where the price is compared to the previous day’s trading range will tell me how to proceed from here. Remember, moving from inside day to outside day is a MAJOR transition regarding market personality, and our day trading strategies always need to keep a close eye on the market’s personality for the best trading opportunities.
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Hi JJ
ReplyDeleteFirst let me introduce myself. I am Rajesh and I day trade index future in NSE India.
I was losing money consistently and was frustrated . While surfing the net I stumbled upon your blog and your materials opened my eyes.Now I am no longer losing. Hope I can turn around in a few weeks
Now I only trade levels like HOD,LOD,Open,PLOD,PHOD and major price pivots. I always expect a Trading range and plan my trades accordingly.
Your idea of fading the breakouts at the next S/R levels and the new perspective of looking at double tops and bottoms helped me a lot.
I have registered for the free trial course and plan to enroll for the other advanced stuff as soon as I can afford the same.
Your methods are very well applicable to Indian markets as it trades only during the day.
I wish you and your family a very happy and prosperous New Year
Rajesh.
Thanks for the feedback on this Rajesh! I would be more than happy to do a personalized online training session to show you more of this as it applies to regional markets in India. Let me know how I can help, and I look forward to working with you as a member in January!
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