Intraday Trading-complete guide

August 25, 2025 admin Leave a reply Post Comment

Intraday Trading Made Practical – Levels, signals, Checklist

What is Intraday Trading?

Intraday simply means “within the same trading day.” You buy and sell before the market closes, so no positions are carried to the next day. The aim is to capture intra-day price swings in equities, index futures/options, or select commodities.

What are “intraday calls”?

They are time-bound trading recommendations—buy or sell—based on technical levels (price, volume, momentum, support/resistance). Entries and exits are both executed on the same day. Discipline is everything: predefined entry, target, and stop-loss are mandatory.

How it works (in practice)

• Instrument: Stocks, indices, or liquid derivatives.

• Clock: Positions opened and closed within market hours.

• Method: React to breakouts, reversals, or mean-reversion signals on short-interval charts.

• Risk control: Tight stop-loss, realistic targets, and strict position sizing (leverage magnifies gains and losses).

Intraday highs & lows

During the session, a stock/index prints a day’s high and low. A “new intraday high” means price has just surpassed all earlier ticks for that session (it may or may not match the day’s closing price).

One-minute example

A stock opens at Rs. 490. Your intraday call is Buy above Rs. 500, Target Rs. 508–512, Stop-loss Rs. 496.
If price triggers 500 and momentum holds, you book out in the 508–512 zone the same day. If it reverses to 496, you exit immediately—no overnight risk, no hope trades.

Basic Rules of Intraday Trading — Chanakya Playbook

Intraday = speed + discipline. Cooked down to rules you can actually follow on a live screen.

A) Pre-Market Groundwork

1. Trade only liquid names
   Pick stocks/indices with tight spreads and depth. Avoid illiquid SME/TT stocks for day trades.

2. Mark levels before the bell
   Prior day high/low, day’s pivots, VWAP, gap zones, and event timings (results, policy, data).

3. Define your risk per trade
   0.5%–1.0% of your trading capital. Example: Capital Rs. 5,00,000 → risk per trade Rs. 2,500 (at 0.5%).

4. Position size = Risk ÷ Stop size
   If your stop is Rs. 5, size = 2,500 ÷ 5 = 500 shares. Never “adjust” the stop to fit size; adjust size to fit stop.

B) Entries (Only on your terms)

5. Wait for confirmation
   Avoid the first 10–15 minutes churn. Enter on a trigger: breakout above resistance, pullback to support, or VWAP reclaim—never on impulse.

6. Trade with the day’s bias
   Above VWAP and higher highs → favour longs; below VWAP and lower lows → favour shorts. Counter-trend trades = smaller size and quicker exits.

7. One reason, one trade
   Enter only if your setup conditions are all present (price + volume + structure). No setup, no trade.

C) Exits (Protect first, then aim)

8. Hard stop, no negotiation
   The stop is placed when you enter. If hit, exit. Do not average down a loser intraday.

9. Scale out at logical targets
   Partial at R1/R2/previous swing, trail rest behind higher lows or VWAP. If momentum dies, book.

10. Time stop
    If the idea doesn’t move within your planned window, exit flat/small. Capital is oxygen.

11. Flat before the bell
    Intraday = no overnight risk. Close positions well before market close (avoid last-minute liquidity traps).

D) Risk & Mindset

12. Daily loss cap
    Stop for the day at −2R/−3R or when you hit your pre-defined drawdown. Tomorrow is another market.

13. Limit simultaneous exposure
    Correlated positions amplify risk. Two similar longs often behave like one bigger long.

14. Journal every trade
    Setup, entry, stop, target, rationale, screenshot. Review weekly; keep what works, drop what doesn’t.

15. News awareness
    Know the calendar (inflation, policy, results). During releases, reduce size or step aside.

E) Quick Tools That Help

• VWAP for intraday bias and pullback entries.

• Structure: Higher-high/higher-low vs lower-high/lower-low.

• Volume: Breakouts without volume are suspects.

• ATR: Sets realistic stops/targets based on volatility.

10-Second Intraday Checklist 

• Is the stock liquid and in play today?

• Do I have a clear level and a reason to trade?

• Entry, Stop (pre-placed), Target defined?

• Position size = Risk ÷ Stop size?

• Any event risk in next 30–60 minutes?

• Above/below VWAP and in alignment with structure?

• If stop hits, I’m out—no averaging.

• If it stalls, I time-stop.

• Daily loss cap respected?

• Flat before close.

Bottom line: Intraday success is less about prediction and more about process—tight risk, clean levels, patient entries, and unemotional exits.

Top Intraday Trading Strategies

Intraday Trading Indicators — Chanakya Playbook

Use indicators to frame the day (bias), time entries, and manage exits. Keep it simple: 2–3 tools in confluence beat a crowded screen.

1) Bias & Mean: VWAP (Volume Weighted Average Price)

• What it tells you: The day’s “fair” price.

• How to use:

  • Above VWAP with higher-highs → long bias; below with lower-lows → short bias.

  • VWAP reclaim/failure is a high-quality trigger after a trend pullback.

  • Add VWAP bands (±1/±2 SD) as dynamic support/resistance.

• Pitfall: Don’t counter-trend fade a strong “band walk.”

2) Structure & Trend: EMAs (9/20/50/200)

• What they tell you: Direction and rhythm of the move.

• How to use:

  • 9/20 EMA: momentum lane; price riding above = trend intact.

  • 20/50 EMA cross confirms shift; 200 EMA marks big-picture intraday bias.

  • Buy pullbacks to rising 20 EMA in an uptrend; sell rallies to falling 20 EMA in a downtrend.

• Pitfall: Crossovers lag—avoid late entries in a mature move.

3) Momentum: RSI (14 or 7) & Stochastic / Stochastic RSI

• What they tell you: Strength and exhaustion.

• How to use:

  • RSI range shift: Bull sessions hold >40–45, bear sessions cap <55–60.

  • Divergences near key levels (VWAP/pivots) = early warnings.

  • Stoch/ Stoch RSI: faster turns—good for timing around support/resistance.

• Pitfall: Overbought/oversold can stay extreme in trends—use with structure.

4) Trend + Turn: MACD (12,26,9)

• What it tells you: Momentum turns via crossovers & zero-line tests.

• How to use:

  • Bullish when MACD > Signal, best above zero; bearish below zero.

  • Histogram inflection (shrinking red) often precedes a bounce at support.

• Pitfall: Lagging in chop; combine with VWAP/levels.

5) Volatility & Risk: ATR (Average True Range)

• What it tells you: Typical intraday move.

• How to use:

  • Size stops by 0.5–1.0× ATR from entry.

  • Targets at 1–1.5× ATR; trail when realized move ≈ ATR.

• Pitfall: Fixed rupee stops ignore volatility—ATR fixes that.

6) Levels: Floor Pivots (PP, R1/R2, S1/S2)

• What they tell you: Pre-set magnets used by many intraday traders.

• How to use:

  • Opening Range (first 15–30 min) + pivots sets the day’s map.

  • Breakout above ORH with rising volume to R1/R2; fade only if momentum/volume fail at level.

• Pitfall: Blind fades at R1/S1 when trend is strong.

7) Bands & Squeeze: Bollinger Bands (20, 2)

• What they tell you: Volatility expansion/compression.

• How to use:

  • Squeeze → Expansion: trade the break with VWAP/EMA alignment.

  • Band walk signals trend continuation; mid-band is dynamic pullback zone.

• Pitfall: Mean-reversion mindset kills you during band walks.

8) Participation: Volume / Relative Volume (rVol) & OBV

• What they tell you: Commitment behind the move.

• How to use:

  • rVol >1.5 post-open = credible breakouts.

  • OBV higher highs while price tests resistance = breakout probability rises.

• Pitfall: Low-volume breaks often fail—trim size or skip.

High-Probability Intraday Setups (ready-to-use)

1. VWAP Reclaim + 9/20 EMA Sync

   • Price dips below VWAP, reclaims with rising volume, 9 EMA crosses above 20 EMA.

   • Entry on first higher low above VWAP; stop = below VWAP/20 EMA (≈0.5–1× ATR).

2. ORB + Pivot Drive

   • Break above Opening Range High with rVol>1.5; target R1 → R2 trail on higher lows; stop below ORH.

3. Bollinger Squeeze + MACD Flip

   • Tight bands, MACD histogram turns up from negative; enter on band break in VWAP’s direction.

4. RSI Range Shift Pullback

   • RSI flips >50 and holds 45–50 on dips; buy pullbacks to 20 EMA/VWAP; exit near prior swing high/pivot.

5. Trend Exhaustion Fade (advanced)

   • Extended band walk into R2/R3 with RSI divergence + rVol fades. Small, quick counter-trend with tight stop above high.

Do’s, Don’ts & Defaults

Do

• Use 2–3 indicators only: e.g., VWAP + EMAs + RSI (add rVol).

• Align timeframes (5-min for triggers; 15-min for bias).

• Pre-define entry–stop–target and size via ATR.

Don’t

• Average losers intraday.

• Trade against a strong VWAP/EMA trend without confirmation.

• Chase breakouts with falling volume.

Suggested Defaults (start, then fine-tune):

• VWAP (session), EMAs 9/20/50/200, RSI 14, MACD 12-26-9, Bollinger 20,2, ATR 14, Floor Pivots, rVol.

Quick Intraday Checklist

• Bias: Above/below VWAP? EMAs aligned?

• rVol > 1.5 on your trigger?

• Clear level (ORB/pivot/band)?

• Stop = 0.5–1× ATR; position size = Risk ÷ Stop.

• Time stop if it doesn’t move. Flat before close.

Bottom line: Indicators don’t predict—they organize probabilities. Trade confluence (VWAP + structure + volume), keep risk tight, and let the tape confirm your idea.

Intraday Margin & Risk Management

1. No plan, no trade — Entering without a defined entry, target, and stop-loss.

2. Averaging losers — Adding to a losing position intraday is the fastest way to blow up.

3. Moving the stop — Widens loss; respect the original risk.

4. Oversizing — Position size must come from Risk ÷ Stop; not from confidence.

5. Chasing breakouts — Buying far from level with falling volume/rVol leads to whipsaws.

6. Counter-trend heroics — Fading strong VWAP/EMA trends without signal.

7. Overtrading — Too many symbols/timeframes; focus on 3–5 liquid names.

8. Ignoring volatility — Fixed rupee stops in a high-ATR day = random exits; size via ATR.

9. Trading news blindly — Results/data releases can gap through stops; reduce size or wait.

10. Holding overnight — Intraday = flat before the bell; avoid carry risks.

11. Revenge trading — After a loss streak, stop for the day (−2R/−3R rule).

12. No journal — Not tracking setups, slippage, and emotions prevents improvement.

Pocket checklist (before each trade):

• Is there a clear level with volume?

• Entry–Stop–Target pre-defined?

• Size = Risk ÷ Stop (ATR-aware)?

• With trend/VWAP or fighting it?

• Any event risk in next 30–60 minutes?

Bottom line: Intraday trading is a speed + discipline game. Catch the move, respect the stop, and close the book before the bell.

FAQs on Intraday Trading

Quicklinks

• Sahifund
• BigGaddi
• Research Reports
• Magajmari

• Market Analysis by Nagaraj Shetti
• Stock Market today by Vaishali Parekh
• Analysis by Kotak Securities
• Market Analysis by HDFC Securities
• Technical Analysis by Kotak Securities
• Technical Analysis by Samco Securities

• Reliance, Target & Stoploss
• Gold Analysis
• FII buy-Sell
• Technical Analysis 
• Calls for the Day
• Currency Analysis