Top 5 Strategies for Day Trading

Top 5 Strategies for Day Trading

Before you start
Have rules for risk per trade (e.g., 0.25%–0.5%), a max daily loss, and a written plan.

1) Opening Range Breakout (ORB)
Idea: Trade the break of the first 5–15 minutes’ range.
Context: Works best on trend days with strong news or market momentum.
Entry: Buy the break above the opening range high (or short below the low).
Stop: Just inside the range on the other side of your entry.
Exit: Scale at 1R and trail behind prior swing lows/highs.
Avoid: Choppy, low-volume opens.

2) VWAP Pullback
Idea: Trend continues after a pullback to VWAP.
Context: Stock above VWAP with higher highs/lows.
Entry: First bullish candle that holds VWAP after a pullback (inverse for shorts).
Stop: Below the pullback low.
Exit: Prior day levels or trail with VWAP bands/ATR.
Avoid: Flat VWAP, news fade days.

3) Trend Continuation after Higher Low (HL)
Idea: Join the trend on the first HL after a breakout.
Context: Clear uptrend, strong relative strength.
Entry: Break of the HL pivot with volume.
Stop: Under the HL pivot.
Exit: 1R/2R targets and trail EMAs or pivots.
Avoid: Late entries after multiple legs.

4) Reversal at Prior Day High/Low
Idea: Fade exhaustion into yesterday’s extremes.
Context: Exhaustion wicks, volume climax, momentum divergence.
Entry: Rejection candle at PDH/PDL; confirm on next candle.
Stop: Above/below rejection wick.
Exit: VWAP, mid-range, or fixed R.
Avoid: Strong news trend days.

5) Breakout from Intraday Consolidation
Idea: Compression then expansion.
Context: Triangle/flag box with declining volume.
Entry: Breakout close with volume pickup.
Stop: Opposite side of the box.
Exit: Measured move or ATR trail.
Avoid: Lunch fakeouts; confirm with market direction.

Execution checklist
- Trade only A-setups at A-times.
- One risk unit per trade; don’t add risk mid-trade.
- Journal screenshots and do weekly reviews.

Tools
Use VWAP, opening range, pivot levels, and a simple momentum read.

Disclaimer
Educational content only. Day trading is risky.

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