Intraday Trading Strategies Beginners – Intraday Trading Price Action
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Intraday Trading Strategies Beginners – Intraday Trading Price Action


– [Presenter] Welcome to the
Intraday Trading Strategies For Beginners video series. In this series, we will be learning about intraday trading strategies and short-term trading in detail. So in this particular
part, I will be covering up the foundations of intraday
trading price action setups. I will be using candle volume charts and standard candlestick charts to assess the overall demand
and supply on the chart. Concepts discussed here
will be extremely useful once we start focusing on
intraday trading strategies and therefore, try and watch
this video till the end. I will be showing you which
are the most important candlestick patterns
along with the relevance of where these patterns
form for intraday trading. I’ll also be showing you how to determine which candlestick pattern
is more important and why. In the end, I will also explain why the overall price
context is more important in intraday trading than
the individual pattern or candlesticks as such. So let’s get started. – [Man] Click on the
subscribe button and bell icon to get instantly notified
when a new video is uploaded. Thank you for subscribing. – [Narrator] So the
first point that I want to highlight here is the
importance of candlestick charts and more importantly,
candle volume charts. So candlestick charts give
you a visual confirmation of who remains in control, whether that is buyers or sellers. There are various candlestick pattern which help you determine this. We will be studying these
patterns in great depth with respect to intraday trading only. Candlestick charts are
one-dimensional, though. As such, they only convey information about buyers and sellers
in form of candle. But they do not convey the
strength of buyers and sellers on individual candles. So this is where candle volume charts are of immense importance
as they convey who remains in control and they
also convey the strength behind the move. So the main reason for
studying candle volume charts is to assess who remains in control. You have to understand one thing here. That is, while intraday trading
means opening and closing positions on the same day,
it is the price structure over the preceding days
that plays a huge role in determining whether
trade on the current day or to let it pass. In other words, previous
sessions’ price action is equally important when
deciding to trade today. This is the most underrated
aspect in intraday trading and before we move to strategies, I want to explain how this aspect works. So take a look at this
chart in front of you. And now take a look at the
chart in a candle volume format. So just take a screenshot
of this particular chart and now see how this looks
on a candle volume format. So this is the same chart in
a candle volume chart format. Now the first thing you have to notice is how distinct strong candles look on this particular chart. In one instance, you can
get a visual confirmation of who remains in control and
the strength behind the move. This is one of the main
advantages of this charting format when you compare it with the
standard candlestick charts. Now just look at the range here that you see in front of you. You can imagine a range here. I’ll just mark it out on the chart. So in this particular range, I can only spot two bullish candles here and rest of the strong candles that we see are supply candles. So what eventually happens is that when the range finally breaks down here with this particular candle,
it was clear that price is going to trend lower
because of the kind of strong supply candle
on back of heavy volumes that has formed here. Now this candlestick that has formed in this particular location is in tandem with these strong supply candles
that you have been seeing in this particular range. So you have to understand one thing, that to be successful at intraday trading, you need to know how to
assess strength and weakness in price over the period
of two to three days, and then act if price
confirms on intraday basis. To help you understand
price structure better, you need to first understand
some basic bullish and bearish patterns. And then understand when these
patterns are more important and when you have to
ignore these patterns. So let us take a look at
this particular aspect in the next section. So I’ve just shortlisted six candle setups that I feel are most important. And I’ll be explaining these
without taking much time. This list is not exhaustive and you can add your favorite
patterns to this list. So the first pattern
that we will be seeing is the bullish engulfing pattern. This pattern that you
see on the right side is bullish engulfing pattern on the normal candlestick chart. And the one you see on the left side is the bullish engulfing pattern
on a candle volume chart. So bullish engulfing is when
current candle completely engulfs the prior candle. What this means is that
the range of current candle is clearly greater than
that of previous candle. When looking at a candlestick pattern, always assess the psychological
impact of pattern. So all of the sellers
that were present here, look at next day when the
candlestick opened here, it completely engulfed this
particular candle here. So think of the psychological
impact that can come in when such candle patterns
are formed on the chart. So in chart in front of you, you can see that the current candle has engulfed three candles at one go. That is this candle, this
candle, and the candle here. So this clearly represents
massive bullishness and whenever you see this on
a chart, always take note. Also take a look at how this pattern looks on a candle volume chart. Look at the volume that have come in while this bullish engulfing
pattern was formed. Clearly, this represents who is in control and it represents the
strength behind the move. So for assessing the strength of candle, keep two things in mind. Number one, what is the
range of the candle? That is the difference of high and low. And number two, what is
the volume of the candle, that is the width of the candle. I hope this particular point is clear. So bullish piercing pattern is
when we get a bearish candle and then we get a bullish
candle that pierces into the previous candle’s body. If you look at the chart in front of you, you see two candles. First is a bearish candle
on back of huge volumes. And then you see a second
candle that is piercing into the body of this bearish candle. So piercing candle that you
see here should penetrate at least 50% of this previous candle. Volume you see on the second
candle is relatively lower. You have to look for patterns
where volume on second candle, that is the piercing
candle, is greater than that of volumes of bearish candle. This would actually signify
a much more stronger response by buyers. Psychologically if you
see in this pattern, you see sellers driving prices lower. And then, next day, buyers
enter at a lower level and then they drive prices higher. I hope this particular
pattern is also clear. This pattern that you see in front of you is the three white soldiers pattern. It’s a very popular bullish
candlestick pattern. In this pattern, you get
to see three strong candles consecutively plotted. The longer and wider these
candles are, the better it is. These represent strong
buying in the market and whenever you spot this on a chart, always take note of it. So in the chart you see on the left side, first candle has wide
range and good width, that is good volumes. However, the next two
candles are not that strong when you compare it with these candles. Make sure that whenever
you spot this patterns, that is consecutively
three bullish candles are being printed on the chart, all those three candles
should have a wide range and the width of the candles
should be wide enough to represent strong volume on the chart. Now we will come to all these aspects when we get down to
individual trading strategies. Also just take a look at how
this particular pattern looks on a normal candlestick chart. And with a candle volume chart, you get a whole new dimension as you get to see the
strength behind the move. I hope the importance
of candle volume chart is clear by now. So this pattern that you see is the bearish engulfing pattern. The pattern you see on the
right side is bearish engulfing on a normal candlestick chart. And the one you see on the
left side is bearish engulfing on a candle volume chart. So bearish engulfing is when
candle completely engulfs the previous candle
signaling strong momentum on the downside. This is very similar that
we saw few slides earlier in the bullish engulfing pattern. So in the chart in front
of you, you see this, the current candle has engulfed the previous candle completely. This clearly represents massive
bearishness in the market. And whenever you see this,
always take note of momentum on the downside. Also look at how this
particular pattern is looking on a candle volume chart, and how it looks on a
standard candlestick charts. Look at volume that have come in while this bearish engulfing
pattern was being formed. This again, clearly
represents who is in control and represents the strength
behind this particular move. So the Dark cloud cover pattern is when we get a bullish
candle on the first day, and next day, we get a bearish candle that pierces into the
previous candle’s body. If you look at the chart in front of you, you can see two candles. First is a bullish candle
on back of strong volumes. And then you see a candle piercing into the body of previous candle, more than 50% of previous body’s range. So whenever you’re trying
to spot this pattern, make sure the volume on the second candle is stronger, as well. This would again signify
selling at higher levels and would indicate the
willingness of sellers to take prices lower. In this particular
sub-chart that you see here, volumes are more stronger
on the bullish candle and relatively lower
on the piercing candle. But always look for those
patterns where volume on the second candle is greater than that of volume on the first candle. I hope this particular
aspect is clear, as well. This pattern that you see is
the three black crows pattern, a very popular bearish
candlestick pattern. In this particular pattern,
you get three strong candles consecutively on the downside. Again, like we saw earlier, the longer and the
wider these candles are, the better it is. These represent strong
selling in the market and represent strong
momentum on the downside. More often than not, price will head lower once this particular pattern is formed. In the chart on the left side, all three candles are wide range candles and with strong volumes. Clearly, all are representing
control of sellers in the market. Now if this pattern forms after a rally, this has more negative implications than when this pattern forms
at the end of a correction. Again, we will be covering this when we come to individual
trading strategies. In this particular chart,
you see wide range candles on back of strong volumes. I have included one demand
and one supply candle for you to see how these look on chart. Now these candles quite often
have a very important role to play when it comes to intraday trading. Wide range candles,
depending on where they form, are an excellent source
of demand and supply. Their relevance obviously
depends on where they form. But in general, when you see
a wide range bullish candle with strong volumes, always
think in terms of demand. And when you see a wide
range supply candle with strong volumes, think
in terms of resistance. Such wide range candles
also become the center of volatility contraction and
then volatility expansion. And let us see how that works
and how it is beneficial in intraday trading. In this particular chart,
you see wide range bearish and wide range bullish candle. And then you see five to six candles within the range of
these wide range candle. So when you spot this on a chart, draw out two horizontal
lines at the high point of these candle, and
low point of the candle. And then wait for price to
breach either of the lines. Now this pattern represents
volatility contraction. And when price moves above
the range or below the range of the wide range candle,
price usually tends to trend in that direction as volatility
expansion works in favor. Again, for intraday trading
and short-term trading, this is a very powerful concept, and always keep this in mind. Now these set of candles that you see are indecision candles. If you see, there is no
real candlestick body here. All the candlestick body is
extremely narrow in range. You can just see long wick and long tails in all these candles. I feel too much is read into
these indecision candles and one should avoid this. Again, this is just my opinion and if you have been
using these in some ways, please continue to do so. Indecision candles basically
convey lack of control by buyers or sellers in market. And when they form, it usually
represents some sort of pause in price movement. However, for me, I would simply prefer
to ignore these candles if they start showing up individually. If they show up in clusters, that is when I will pay attention to these indecision candles. I’ll repeat once more. If I spot one or two indecision candles, I don’t pay much attention to these. But if I see such clusters
forming on a chart where I see four to five
indecision candles being printed, that is when I start
paying attention to these. So this chart that you see in front of you is that of a hammer and inverted hammer. Now these two candles are very important and usually mark the
end of a trending move. Again, it depends on
where these candles form and we will be looking into
this from the next section. Remember one thing that not
every hammer or inverted hammer is important in candlestick pattern. Both these patterns have to be confirmed once they are formed. So let us now move to understanding what gives candlesticks
a meaning on chart, and what I mean by relevance and context, and why individual candles
have limited meaning when it comes to intraday trading. Now that we have a basic
understanding of candles, bullish and bearish patterns,
let us now understand how to spot demand and supply
using candle volume charts in intraday and short-term trading. Since you are trading
on a day-to-day basis, you need to analyze demand and supply over last three to four sessions only. The way you analyze demand
and supply should be based on two factors. Number one, wide range candles. And number two, wide
range candles with volume that result in trend movement. So look at the chart in front of you. The first candle has good volumes but it is not a wide range candle as closing is not towards
the high point of the day. Subsequently, few days later, you get a strong wide range
candle on the downside and this essentially sets the
tone for the next few days in the market. Now, as prices fell, one
can spot wide range candles with good volumes on the downside. On the flip side, though, no
major demand candle is seen. So if you’re somewhere
here and you would analyze the demand and supply over
the last three sessions, you would know at that point
that sellers remain in control and the probability of price
heading lower is much higher. In this particular chart that you see, you see one strong demand
candle in the beginning that sets the tone for next
few sessions on the upside. If you look at the end of the chart, you can spot this candle with huge volume that led to reversal of price
in this particular session. We will come to why this
happens towards the end and I will show you how to
counter such individual candles. But remember one thing, wide range candles often set the tone for
market over the short term. This cannot be random, though. You will have to see
where such candles form and their relevance. Again, this is something
I will be covering two slides later. In this particular chart that you see, you see two candles in the beginning. First candle is on the
upside and has strong volumes along with a wide range. Second candle, however,
forms on the downside with volumes greater than
the previous bullish candle and the range greater
than the previous candle. If you remove all these candles here, then these two candle form
a bearish engulfing pattern suggesting strong
momentum on the downside. Again, this sets the tone
for the next many sessions in the market. There are a couple of
points you have to see here. Number one, range of the candle. And number two, volume behind the candle, that is the width of the candle. You also have to make sure of one thing, that not every wide range
candle is negative or positive. And hence, you will have to
see where important candles, important patterns, and setup are forming. Unless you give a meaning to patterns, you will simply end up chasing
every wide range candle that gets printed on the chart. This is not the right approach when it comes to intraday trading. Let us now move forward
towards understanding the importance of relevance on chart. And let us understand
which candles or patterns are important and which
ones have to be ignored while trading on a intraday basis. So this chart that you see in front of you has strong two candles on the upside based on range and volume. This initially sets up the
tone for the next few sessions. If you see, price then moves in a range for two to three sessions. And then you see price breaking out with the high volume bullish candle. Now this candle becomes
your entry for the day because price remains
in a bullish trajectory, then heads into resistance here, and then has breakout on strong volumes. Again, I’ll repeat. The reason why this candle
becomes your entry point is because price remains
in a bullish trajectory as indicated by these two candles. And then price heads into a
clearly well-defined resistance and then breaks out on strong volumes. So this is what relevance
and context means when it comes to individual
candles and patterns. So look at this chart in front of you. The blue line here is the pivot level and the two green lines that you see are resistance one and resistance two. This is something that we had
covered in part one, as well. The long wicks on the candle you see just around the R1 level, look at how R1 is consistently
acting as resistance. On the flip side, if you
see, look at how pivot level is acting as support as
marked by these long tails of the candles. Now pivot level is again
tested on the next day as represented by long tails here. After this, you get a wide range candle, which moves above the resistance (R2) line, and then continues to trend higher. So again, the importance
of relevance and context is highlighted here. Had you not known the
demand at pivot level and the resistance at
resistance (r1) level, you would not have
understood the importance of this wide range bullish candle. So this is the same candle
I have represented here. Look at the volumes that have come in. So this prior knowledge of price action was actually important
in taking a trade here because the candle was clearly bullish and it closed above the R2 line. Mind you, over the last two sessions, we have clearly seen resistance at R1. And when you see such breakout happening and price moving above the R2 level, that is a clear bullish sign. So again, I hope you understand
that individual candles or patterns are not that important. You have to look at the
overall price structure and then assess the strength
of demand and supply on that individual chart. I hope this particular point is clear. So this chart that you see in front of you has weekly high and weekly
low level marked on the chart. Price moves above this range
at the start of this week in form of a wide range
candle and then moves higher. If you see, in between you
did see a wide range candle on the downside, but
this has to be ignored. There’s no relevant context within which you can fit this candle here. But once price forms a range
and then price moves out of it with a wide range candle,
this adds a whole new meaning to this breakout candle
with respect to price being in a prior range. In this particular case, if you see, there are two key points here. Number one, weekly high and weekly low defines the price range. And number two, breakout happens on a strong wide range candle and then continuation happens
in the direction of trend. So this is one more example
of weekly high and weekly low, and then price breaking out of this range. So within this range, you do see four wide range candles here. Volume on all these four
candles is very high. However, look at how the
breakout candle forms. The wide range candle
with huge volumes forms and this sets the tone
for the next few days on the downside. Again, without the context
of weekly high and weekly low marked on a chart, it would be
difficult to initiate a trade as there are three to four
wide range candles present with good volumes. But once you have put
a context to the chart in terms of price range, that
is weekly high and weekly low, you exactly know which candle to notice and which becomes your
entry point in the market. So this is an example of
price taking resistance at the pivot line as marked on the chart. Now each time in down move,
that price has retraced back to this pivot level, it
has faced selling in form of wide range supply candle. The important point to note here is that where supply
candle forms matters more than the candle itself. Now there are many supply
candles that are visible on the chart and one cannot
take entry at each candle. However, when you see supply
candle forming at a pivot level or at resistance one level,
with the trend being down, this is a signal of
continuation of down move. Now each of these supply
candles that you see here have come on back of strong volumes. Now when price will trend
with strength on the downside, more often than not,
it will take resistance either at the pivot level or
at the resistance one level. But rarely price will
cross resistance, R2 level, on the upside. Always keep this point in mind. I’ll again repeat. When price is strongly trending down, it will face resistance at the pivot level or the resistance (R1) level. But very rarely will it attempt to cross the resistance (R2) level. I hope this point is clear. So this is again an
example of price failing to cross the R1 level decisively, and then taking resistance at pivot level before heading down with a gap. If you look at the first
wide range candle here, that is the supply candle, this sets the tone for the next few days. Following this, price repeatedly fails to get past the pivot
level and the R1 level like I’ve marked on the chart. Also during this time, price keeps on rotating
near the pivot level. So finally, a breakdown came in form of two wide range supply candle,
and then price moved lower. So in this particular case, if you see, there are two key points. Number one, wide range
candle and price repeatedly not being able to cross the
resistance one and pivot level. And number two, breakdown
finally comes in form of two supply candles and
then price trends lower. So I sincerely hope by now
you’re beginning to see how important overall chart context is and limitations of individual
candles or patterns without this relevant context. So this chart that you
see is exactly opposite of the last two charts that we saw. In this particular chart, you see price repeatedly
takes support either at the pivot level, and it breaches the R1 level
consistently on each session. Now if hallmark of down-trending chart is to take resistance
at pivot and R1 level, then hallmark of a up-trending
chart is to take support at pivot level and consistently breach the resistance one level. Now never forget this as
this forms the cornerstone of analyzing short-term
trends, which in turn will help you trade in the
direction of short-term trend when it comes to intraday trading. We will be studying the
relationship of price with pivot, support and resistance
level in great depth. But for now, just keep the
above mentioned point in mind. So this again a example of price failing to cross the resistance one decisively, and then rotating around the pivot level. Now once the rotation ends,
price then heads lower with the strong supply candle
as marked on the chart. Now if you spot a chart that fails
to cross resistance two level consistently, and then
faces resistance either at the resistance one
level or the pivot level, always take note of this and wait for a supply candle to form. If you spot a supply candle,
then odds will be high for price to head lower
with strong momentum. So this plays out quite often when it comes to intraday trading. I hope that you can see that
while trigger to go shot came with wide range supply candle
at this particular point, it was the previous sessions
which again gave meaning to this particular strong supply candle. Without the overall meaning and context, it’s very difficult to
initiate a trade simply based on a supply candle that is shown here. Because, see this is a
small snapshot of a chart. When you have 10-year data on a chart, you will see that randomly
such strong supply candles or demand candles form quite often. So which is why you will have
to understand the meaning of overall price structure
analysis and context to give such candles relevant meaning. So this chart I have put up to caution you about gaps and intraday trades. When you spot such gaps on the chart, always be mindful and
don’t rush to participate on a intraday basis. Gaps are a great sign
of strength or weakness, but gaps do tend to fill
out once they appear and this actually makes
it difficult to time trade on intraday trading basis. Now too many beginners commit
the mistake of chasing gaps in intraday trading, and I
think this should be avoided. You should have understood by now how to use price action analysis with respect to previous
weeks and days highs and low. Along with how to assess pattern strength around price ranges, price pivot levels, and support and resistance levels. Unless and until you
operate within a framework making sense of price, action will always remain
difficult and random. Do not forget this aspect
of intraday trading. So whenever you want to
trade on intraday basis, always ask yourself two questions. Number one, what’s the recent trend? And what does price analysis suggest in terms of price taking
support or resistance? And number two, where is
the path of least resistance on chart? And is there a pattern or
trigger to confirm this? Everything else in intraday
trading would come later. In the previous part, I’ve
shown how stock selection plays a huge role in intraday trading. And this is something that
we will explore in part three of this Intraday Trading
Strategies series. So thanks a lot for
watching this video, guys. Kindly consider hitting the like button and sharing this video, as well. In case you have any doubt
about what I’ve shown you, do leave me a comment below
and I will get back to you as soon as possible. So thanks a lot, take care, and be safe. – [Man] Click on the
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About Ralph Robinson

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49 thoughts on “Intraday Trading Strategies Beginners – Intraday Trading Price Action

  1. Link To Intraday Trading Strategy Videos https://www.youtube.com/playlist?list=PL9myHLrE5hrOT8O9g-f8kb575b-KTsq0B

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    Thanks For Watching Guys. Tc & Be Safe.

  2. Dear ST, thank you very much for this video. Was test trading today using these concepts. What I immediately noticed was, I was less anxious when few thin candles went against my position which would be difficult, at-least for me, with candles along with volumes at the bottom. Really useful. Will have to explore more to see how to integrate with my setups. Eagerly waiting for next videos 🙂

  3. Hello Sir, hope you are doing great, we are waiting for the 3rd part of this series, thanks very much in advance!!

  4. In three black crows is it necessary that next candle should open gapdown for bearish scenario?Do make a video on gapup/gapdown theory if possible.

  5. You are awesome, you are excellent in English, I am unable to follow others videos in hindi and english as well. I am understanding very well the strategies. Thanks a lot.

  6. AWESOME VIDEO. I am using Sharekhan Trading platform, Price-Volume Bar not available in Sharekhan only Price Bar is available. What Can I use to know Trend of Volume.

  7. Sir which cart pattern ur using that indicates volume also please help me and reply as soon as possible

  8. Please make videos on Scalping… There are very few on YT that explore this underestimated, looked down upon yet extremely powerful trading style

  9. Candle volume chart is different from Heikinashi and simple candlestick pattern.
    Is this CANDLE VOLUME PATTERN Available on all broker platforms like SHAREKHAN, UPSTOX, ETC
    Or is it available on investing.com

  10. Very well crafted content , keep up the good work !
    Which Platform Do you use to Pull Out Candle Volume Charts ?
    Or any suggestions for the same except for Zerodha ??

  11. amzing sir….for this wonderfull & help full knowledge….now days no body teach like this every body want only number of subscriber…but u r the best

    plz can u tell me a good software
    where i can plot all these level
    and volume chart candles as well…
    frankly speaking before today i dint
    know all these things…which is very imp….

  12. Perhaps the best video series in day trading I ever seen. Great job. Very systematic. Will be good to narrate live recording what go on with your emotion intraday trading 2min to 5min chart as the price structure or trend unfolded or beginning to form or beginning to reverse. That is the most difficult obstacle for day traders….emotion (greed/fear) versus faith in one's system as one watching it in real time.

  13. In this video you have shown many example charts, which time frame these charts are? You mentioned to analyse 3 to 4 sessions means last 3-4 days charts to be considered?

  14. Hello Bro, In the above video at time 12:10 you are discussing about wide range candle and many candles as inside candles, you have told this is very powerfull place. Kindly tell me which time frame we have to look for such pattern for Intra day traading?

  15. Thanks for your prompt reply. I have one basic doubt with regards to candles, what is the difference between full real body candles and long wick & tails candles? What it signifies? Which is more powerful?

  16. Hi.. is there any website freely available to plot candle volume chart? Because i didn't get any.. investing.com has no such chart plotting.. if u suggest me something it will be helpful

  17. Once again a good video. It is so engaging I have not been able to leave Youtube. Spent almost 2 hours watching 5-6 videos. Great!

  18. Guruji where were you from so long days. Today i spotted you after getting into lot of problems in life because of this profession.
    I seriously want to meet u once. I hold your legs. Which corner in the world you are plz respond.

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