Intraday Trading Strategy: First 15 Minutes -- with David Moadel
hello and welcome to looking at the markets with David Modell in this video
I'm going to present you with an intraday trading strategy a day trading
strategy involving the first 15 minutes of the trading day please be aware that
this strategy does not work 100% of the time
so also if you do need more help with trading or investing I do coach people
on that or if you'd like help putting together a trading or investing plan or
you need help picking out stocks or commodities to use in your watchlist and
in your trading or investing you can contact me for the coaching by email at
David Modell at gmail.com so let's get into this strategy again this is for day
trading or intraday trading so no matter what you are going to want to close out
your position before the end of the trading day because you do not want to
expose yourself to overnight gap risks alright so this is Apple this is the
one-minute candlestick chart on trading view you can use the 2 or 5-minute
candlestick charts if you prefer it's just that for something as precise as
this because we're going to be measuring the high and the low of the first 15
minutes I want as much information and as detailed and precise information as
possible and so I'm preferring to use the 1-minute candlestick chart but you
can use the 2 or 5 if you prefer to just be aware you won't get as much detail in
the information presented on the chart and so trading view you'll notice that
it has the beginning you know the it ad this is Apple 1-minute candlestick chart
on trading view and it gapped up ok and so what I'm gonna do is notice that it
has the opening at 9:30 a.m. Eastern Time and then the next measurement here
is 15 minutes later at 9:45 Eastern Time which is very convenient for this method
because you're going to wait until the first 15 minutes are finished and then
you're going to measure the high highest point including not just the
bodies of the candlesticks but also the wicks or shadows those count as well so
you're going to decide what is the high of the first 15 minutes of the trading
day and what is the low okay again including the wicks or shadows and so
you've got the high over here you can even draw the lines on your chart if you
want to you can draw parallel lines like the high and the low of the first 15
minutes okay and then that's how you take your long or short positions if you
get a clear close okay a clear break meaning a candlestick closes above the
high of the first fifteen minutes then you can take a long position and hold on
all right now let's say the high of the first fifteen minutes was right here so
where did it break above that yes it did it closed above did a little bit right
here okay so I could have taken a long position and actually went against me a
little bit there all right and so what is your stop-loss your stop-loss could
be the low that you measured before remember you're going to determine the
high the highest price of the first fifteen minutes and the lowest price and
so if you're going for a long position because it breaks above a candlestick
closes above the high point of the first fifteen minutes then your stop-loss
could be the low all right and so it broke above a little bit here and so I
could have taken a long position and went against me but I wouldn't have
gotten stopped out because the stop Bluffs would be down here at the low of
the first fifteen minutes when against me but I stayed in the trade and it did
quite nicely here now what your profit target is is up to you and that's a
whole separate video and I do have a video on you know taking profits stop
losses and taking profits and I'll actually put that in the description
below this video if you want to click on that and watch that video as well but so
you know I'm not this method does not determine where the take profit is but
it does determine where you can put your stop-loss if you want to all right now
lo let's say what if it broke what if a candle closes below
the low instead of above the high alright well let's see what that looks
like we have Facebook here from today the one-minute candlestick chart and you
can see that gapped down okay here's 9:30 a.m. Eastern Time it
gapped down and then I looked at the first 15 minutes until 9:45 a.m. Eastern
Time and so the range the you know the the high of the first 15 minutes was
here the low was here okay and so that's where the lowest and so I start you know
I wait until 15 minutes are done and then look at that it broke a candlestick
clearly broke below and closed below the low of the first 15 minutes and then it
did quite well after that and I could have taken profits depending on where my
profit target was all right where would this work could the stop-loss have been
well at the high of the first 15 minutes but it didn't even come close to that it
went down immediately afterwards because the trend clearly was down although if I
hadn't taken profits it did start to go it did start to retrace and again the
stop-loss would have been here and the take profit is up to you that is not
determined by this particular method you would want to determine that separately
and again no matter what happens you would want to close your position out
before the end of the trading day so as to avoid overnight up or down gap risk
because this is an intraday or day trading strategy and so if you take a
position and just drift sideways and it's almost the end of the trading day
you can you can close out your position okay and what if it doesn't break above
or below the higher the low all day long let's say it just drift sideways then
you won't take any position at all you will neither go long nor short that is
going to happen sometimes if you don't feel like waiting all day for that to
happen you can set a time limit you can say to yourself okay I'm gonna wait for
the first 15 minutes then I'm gonna establish the high in the low of the
first 15 minutes and if nothing happens by lunchtime let's say then you're just
going to close your position if you have one or you're just not going to take a
position because it is true at least in my experience not always but more often
than not I do find born price action around lunchtime a lot of
traders are just taking lunch off and so and then you may want to reconsider your
you know your time frame based around that or you could just wait all day
although it can get boring if it just stays in that range all day so that's up
to you how long you're willing to wait but definitely close your position by
the end of the trading day if you are a true intra day trader alright so that is
the fifteen minutes rant opening range method again it does not work every time
I strongly recommend I cannot tell you what to do or what not to do but I think
it's a great idea to virtual trade at pay per trade at first for a while see
if it works for you and then if you do choose to try this out with real capital
real money only put in very small positions just to test it out so you
don't have any big losses all right so my name is David Modell if you found
this video helpful please give it a thumbs up on YouTube and leave a comment
have you tried this has it worked for you do you like this method do you have
something that's an alternative that you like better and please subscribe to my
channel if you haven't done but if you haven't done that already and hit that
notification Bell on YouTube so you can receive updates whenever I put out
videos like this one also I do offer the coaching and you can email me for the
trading or investing coaching at David Modell at gmail.com also below this
video I'm going to put some free financial reports that you can download
check the description below this video for those thanks a lot I really
appreciate it I'll talk to you again soon