Intraday trading involves buying and selling assets during the same trading day. This is the type of trading that requires total concentration and focus, so no overnight positions are allowed and every trade should be closed during the same day trading sessions. There is a lot of discussions is this type of the trading effective and profitable especially in the Forex market. Sometimes when there is a trend in some asset class, the medium to long-term trading is more desired than the short-term intraday trading, but also that is not sometimes the simple truth.
When you have established good trend uptrend or downtrend on the higher time-frames then intraday trading could be as productive as the medium to long-term trading. The principle of the analysis for the trade execution is the same. You are beginning from the higher time-frames and you are then moving to lower time frames. In the intraday trading, it means you start with the Daily chart and then you are moving to four-hour chart and one hour chart. Take for the example the EUR/USD. What will be an Intraday trading strategy for Monday?
On the Daily chart above we can see that the pair is approaching the strong near-term uptrend line. By breaking this line to the downside, we will take only short trade entries for intraday trading, and this requires the break below 1.17400 level. So the important thing is to determine a direction for trade entries and then in intraday trading to execute the trades. On the other hand, if we get the bounce from this trend line and this level, then we will take the long trade. So look at the four-hour chart to identify the intraday trading opportunities.
On the break below the 1.17400 level on the 1 standard lot (100,000) we could have close to 500$ of profit moving lower to the Pitchfork Channel lower line. and if there would be a bounce from this level we could see a good long trade with the possible 500$ of profit on the upside. Both long/short trade could have up to 150$ of risk. So it seems easy. Yes at this point for this instrument, but every day we have this kind of points on different instruments, so there is always a possibility for the profitable trade. When you know the direction and you set your strategy then this kind of trading could be extremely profitable, and it will also build your trading discipline to the desired level.
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