STRATEGIES > Short-Term Execution
Intraday (Day) Trading Strategy
Intraday traders open and close positions on the same trading day using intra-session price movements. All positions are closed before market close to avoid overnight risk from news and gap events.
Quick Answer / Strategy Definition
Intraday trading (day trading) is the practice of opening and closing all positions within the same trading session, avoiding overnight exposure by using technical analysis on 15-minute to 1-hour chart timeframes.
Entry Setup Rules
- 1.Mark previous day's High, Low, and Close before the session opens
- 2.Identify key intraday support and resistance levels on 15M chart
- 3.Enter only when price is above the Previous Day High (long) or below Previous Day Low (short)
- 4.Wait for a 15M momentum candle confirmation before entering
Exit & Target Rules
- 1.Set Stop Loss at 1% below/above key intraday level
- 2.Target: Previous session's high/low or 1.5x the opening range height
- 3.Close ALL positions 15 minutes before market close regardless of result
Real Market Setup Example
Nifty 50 opens above the previous day high of 24,500. A bullish 15M candle closes above 24,520 with volume surge. Trader enters long at 24,525 with SL at 24,440 and Target at 24,700. Position closed same day at 24,695 for +170 points.
Advantages
- • No overnight risk exposure
- • Multiple trade opportunities within a single session
- • Clear daily performance tracking
Common Pitfalls to Avoid
- • Overtrading — entering too many positions in a single session
- • Failing to close positions before market close
- • Trading during low-volume mid-day periods with no clear setup
Calculate Risk for this Setup
Ensure your position size stays within your 1% risk threshold.