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in/

F a t a F a t D a y Tr a d i n g S t r a t e g i e s .
Easy to follow Day Trading Strategies for Beginners.

HOME NIFTY DayTrading FAQ's

E a s y D a y Tr a d i n g S t r a t e g i e s
for Beginners
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D ATA P O I N T S R E L E VA N T T O D AY
TRADING

In tr a d a y Vo l u m e i s th e Fu e l th a t p o w e r s th e s u c c e s s o f
a ny gi v e n d ay tr ad i n g s tra te g y. H i ghe r re l ati ve d ay
vol u me sh o ul d b e a to p p r i o r i ty w he n s c re eni ng s toc ks
fo r d a y tr a d i n g .

Stocks that have si gni fi cantl y gai ned or l ost dur i ng the
d ay, h as a hi g h e r ch a n ce o f mov i n g i n th e s a me d i r ec ti on
th a n tr a d i n g o n a d o r m a n t s to c k a n d e x p e c ti n g i t to m a k e
i r r ati onal m oves dur i ng i ntr aday.

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OPENING RANGE BREAKOUTS

Op e n i n g R a n g e Br e a k o u t ( OR B) i s a c o m m o n d a y tr a d i n g
str ate gy u s ed b y d a y tr ad er s a round the gl obe.
The obj ecti ve i s to m ar k Today's H i gh and Low r ange of
a sto ck at a sp e c i fi c ti me after the mar k et opens .
Tr ades ar e taken i n the sam e di r ecti on at w hi ch the pr i ce
m o v e s o u t o f th i s r a n g e .
15 mi n u te s, 30 m i n u te s a nd 1 hour ar e the mos t p opul ar
m a r k e d R a n g e s w h e n d a y tr a d i n g th e Op e n i n g R a n g e
Br eakouts.

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P R E V I O U S D AY R A N G E B R E A K O U T S

Yes te r da y's H i g h a n d L o w v a l ue s ar e us ed w h en d e fi ni ng
th e Pr e v i o u s D a y R a n g e ( PR B) . Tr a d e s a r e i n i ti a te d i n
th e s a m e d i r e c ti o n a t w h i c h th e p r i c e b r e a k s o u t o f th e
Pr evi ous D ay's r ange.
Why i s thi s i m po r tan t fo r d a y trad i n g ?
Pr i ce m ovi ng above yester day's H i gh i m pl i es i ncr easi ng
d em an d . S i m i l ar l y w h e n p ri c e m ov es b el ow Yes ter d ay 's
L ow re fl e cts th e i nc re a si n g s uppl y.
D ay tr ader s often use thi s i n com bi nati on w i th other day
str ate g i e s to i nc re as e th e o d ds .

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R I D I N G N E W I N T R A D AY H I G H S & L O W S

In tr a d a y tr e n d i s d e fi n e d b y s tr o n g p r i c e a n d v o l u m e
m o v e m e n t o f a s to c k d u r i n g th e d a y.
D ay tr ader s l ook for stocks w i th conti nuous m ovem ent of
pri c e i n th e sa m e di re cti on c ombi ne d w i th i n cr eas i ng
vo l ume .
Stocks cr eati ng N ew Intr aday hi gh's or l ow 's ar e
potenti a l c a n di da tes for d ay tr aders w ho w ant to r i d e the
tr e n d .
Thi s str ategy i s based on the assum pti on that stocks that
r i s e w i l l c o n ti n u e to r i s e a n d s to c k s th a t fa l l w i l l c o n ti n u e
to fa l l , d u r i n g th e d a y.

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C O N S E C U T I V E D A I LY G A I N E R S &
LOSERS

D em and and Suppl y i n a stock i s evi dent w hen the pr i ce


sta rts to mo ve i n th e s a m e di rec ti o n fo r the p as t few
d ays .
Thi s happens w hen i nvestor s star t to accum ul ate these
sto cks o r b e gi n to d i str i b u te the i r h ol di n gs .
D ay tr ader s often fi nd these dai l y Gai ner s and Loser s
i nter esti ng for spotti ng a daytr adi ng oppor tuni ty.

2 & 3 d a y's C on se cu ti ve Ga i ner s an d Los er s ar e sh or t


l i sted for tr adi ng thi s str ategy.

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P I V O T S U P P O R T & R E S I S TA N C E
CROSSOVERS

Suppor t and R esi stance l evel s based on C l assi cal Pi vot


For m ul a w or ks l i ke a m agent.
You w i l l b e s ur p ri s e d to w a tc h how i ntraday pri c e re acts
at th e se p r e de fi ne d l ev el s . Th e l e v el s a re bas ed on
Yes ter d ay 's H i g h, L ow an d C l os e. P r i ce m ovi ng above or
bel ow the se p r ed efi ne d l ev e l s s i gni fi e s s tren gth or
w eakness.

The C l assi cal Pi vot i ndi cator s ar e avai l abl e on m ost


tr a d i n g p l a tfo r m . Pr i ce C r ossover s on Pi vot Li ne, R 1 and
S1 ar e m oni tor ed for tr adi ng thi s str ategy.

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P R E V I O U S D AY H I G H & L O W R E J E C T I O N S

It i s i m p o r ta n t to l e a r n th e Pr e v i o u s D a y R a n g e Br e a k o u t
Str ategy, befor e w e know w hy the pr i ce r ej ecti ons at
th e s e l e v e l s b e c o m e s r e l e v a n t.
In tr a d a y p r i c e g e t r e j e c te d a t Pr e v i o u s D a y 's H i g h o r L o w
w hen today's pr i ce attem pts to counter tr end the dai l y
tr e n d c y c l e .
Pr i ce r ej ecti ons at Yester day's Low fr om above i s
fa v o r e d fo r l o n g i n tr a d a y tr a d i n g .
Pr i ce r ej ecti on at Yester day's H i gh fr om bel ow i s favor ed
fo r s h o r t i n tr a d a y tr a d i n g .

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NARROW RANGE 7 BREAKOUTS

N ar r ow R ange 7 ( N R 7) for m s w hen Yester day's tr adi ng


r a n g e , h i g h - l o w, i s th e n a r r o w e s t o f th e l a s t 7 tr a d i n g
day s.
After i denti fyi ng a N R 7 oppor tuni ty, tr ader s w ai t for the
pri c e to mo ve a b o ve or b el ow thi s nar row range dur i ng
th e d a y.
Tr ades ar e taken i n the sam e di r ecti on at w hi ch the pr i ce
m o v e s o u t o f Ye s te r d a y s N a r r o w R a n g e . Th i s s tr a te g y
w or ks on the assum pti on that today's br eakout w i l l
determ i ne the n ew sh or t te rm tr end c y c l e for th at s to c k .
Thi s i s ver y si m i l ar to other R ange Br eakout str ategi es
di scu s se d e ar l i e r.

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Screen the above Intraday strate


Markets.
Al l the above di scussed str ategi es can be scr eened R eal Ti m e usi ng t

Star t Scr eeni ng today...

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"Not having a successful strategy might not be the reason why some d
to follow any one strategy over a reasonable period of time could be th

F at aF at D ay Tr adi ng S t r at egi es .

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A FataFat Stock Screener Initiative, for empowerment.


D ISC LAIM ER : D ay Tr adi ng and Investi ng i nvol ves substanti al r i sk of l oss and m ay
not be su i ta b l e fo r y o u . Th e stra tegi es di s c us s ed her e s h ou l d not be c on s i dered as
an a dvi ce to fo l l o w th e m. N o C o mp ens ati on offered for any fi nanc i al l o s s or
emo ti on a l s tr es s y o u mi g h t i n c ur fr om us i ng thes e s trategi e s . U s e thes e s trategi e s
or i dea s o nl y a fte r yo u h a v e u n de rstood the r i s k s as s oc i ate d w i th Trad i ng an d
In v e s ti n g . Pa s t p e r fo r m a n c e o f s tr a te g i e s a r e n o t a g u a r a n te e o n i ts fu tu r e r e tu r n s .

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