Intraday Trading & Setups: How To Place Trades

In part 1 we talked about market structure and how to make sense of the market moves.

In part 2 we will explore where to place trades.

The main goal in intraday trading is to pick out likely places the market will move before it actually makes it’s move. There are a few ways we can go about it.

1.  Continuation of a trend

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When we look at the markets, the first thing I look for is whether or not there a clear trend present. If there is, then I look at how long have we been in trend and where we are at in the process of that trend.

Are we near highs of the trend, have we pulled back, but are still holding support? These questions give me an idea whether or not we are in a good spot for getting in a trade in the direction of that trend.

2.  Change in trend

If we are near highs or lows, we may be approaching a trend change. Things I look for are a break of swing lows if we are in an up trend, or a break of swing highs if we are in a down trend. This gives us a clear line in the sand that a possible trend change is likely.

3.  No trend

If the market is in a chop or consolidation zone, sometimes called a box, then we want to look to the top and bottom of that range for possible entry points.

How to Enter

When it comes to placing trades, I like to use a simple Fibonacci Retracement tool. Using the 50% for my entry, 61.8% for my failure point and -23.6% as my first target. I will then trail the second half of the position as long as I can. This simple approach is a great way to get started in day trading or for the more seasoned trade, return to basics and ensure that you’re following a sound trading approach.


Twitter:  @EminiMind

Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.