Easy Beginner Trading Strategy
44sPromises a simple, actionable strategy for beginners, which is highly engaging for new traders seeking quick wins.
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This video teaches a simple intraday trading strategy for beginners based on gap-up and gap-down openings. The strategy involves drawing a line at the high or low of the first 15-minute candle and entering a trade when the price breaks that level.
Chapters
[00:05]
Strategy Overview
The strategy focuses on stocks with gap-up or gap-down openings. It is designed for beginners and is easy to use.
[00:49]
Gap-Up Opening Definition
A gap-up opening occurs when a stock opens higher than the previous day's close, creating a gap on the chart.
[01:34]
Entry Rule for Gap-Up
Draw a line at the high of the first 15-minute candle after market opens. If the price goes above this line, enter a buy trade.
[02:32]
Stop Loss and Target
Place stop loss at the low of the first 15-minute candle. Target can be based on candlestick patterns or until a reversal signal appears.
[03:13]
Volume Confirmation
Apply a volume indicator. If volume increases along with the gap-up opening, it confirms the trade and increases probability of success.
[04:50]
Gap-Down Opening Strategy
For gap-down openings, draw a line at the low of the first 15-minute candle. If price breaks below, enter a short sell trade. Stop loss is at the high of that candle.
[06:02]
Strategy Limitations
The strategy does not always work. Example shows a case where stop loss was hit due to premature entry. Patience is important.
[06:55]
Finding Gap-Up Stocks
Search 'gap-up open stocks' on Google or use screeners on Money Control or charting websites to find stocks with gap openings.
[07:26]
Best for Beginners
The strategy is recommended for beginners. It requires focus on the first candle. Test the strategy on paper before trading with real money.
The gap-up/gap-down strategy is a simple, beginner-friendly intraday trading method. However, it requires patience and confirmation from volume and candlestick patterns to avoid false breakouts.
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Tutorial Checklist
Study Flashcards (8)
What is a gap-up opening?
easy
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What is a gap-up opening?
easy
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A gap-up opening occurs when a stock opens higher than the previous day's close, creating a gap on the chart.
00:49
What is the entry rule for a gap-up opening trade?
medium
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What is the entry rule for a gap-up opening trade?
medium
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Draw a line at the high of the first 15-minute candle. If price goes above that line, enter a buy trade.
01:34
Where should stop loss be placed for a gap-up trade?
medium
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Where should stop loss be placed for a gap-up trade?
medium
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Stop loss is placed at the low of the first 15-minute candle.
02:32
How can volume confirm a gap-up trade?
medium
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How can volume confirm a gap-up trade?
medium
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If volume increases along with the gap-up opening, it confirms the trade and increases probability of success.
03:13
What is the entry rule for a gap-down opening trade?
medium
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What is the entry rule for a gap-down opening trade?
medium
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Draw a line at the low of the first 15-minute candle. If price breaks below, enter a short sell trade.
04:50
Where is stop loss placed for a gap-down trade?
medium
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Where is stop loss placed for a gap-down trade?
medium
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Stop loss is placed at the high of the first 15-minute candle.
05:33
How can you find stocks with gap-up openings?
easy
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How can you find stocks with gap-up openings?
easy
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Search 'gap-up open stocks' on Google or use screeners on Money Control or charting websites.
06:55
What is the biggest problem with this strategy?
hard
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What is the biggest problem with this strategy?
hard
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The biggest problem is that it requires focus on the first candle, and premature entry can lead to losses.
07:26
💡 Key Takeaways
📊
Gap-Up Opening Defined
Clear definition of a key concept for the strategy.
00:49
🔧
Entry Rule for Gap-Up
Core actionable step for executing the trade.
01:34
🔧
Volume Confirmation
Adds a filter to improve trade reliability.
03:13
💡
Strategy Failure Example
Honest acknowledgment that the strategy is not foolproof.
06:02
⚖️
Best for Beginners
Advice to test before trading real money.
07:26Full Transcript
[00:05] In today's video, I am going to teach you such an easy beginner, you can use it very easily. First, let's understand this strategy.
[00:19] strategy. in which there is either gap up opening or gap down opening. So, there are more than 5000 stocks in the stock market.
[00:35] gap up or gap down opening. trade to buy in it. a trade to sell in it.
[00:49] Now, what is gap up opening? So, if you see any day in a stock, that the price of the is, today's day opens, then it goes up and opens here. This
[01:07] creates a gap in the middle. of all, you see it as soon as the market opens, then what
[01:19] which there is a gap up opening, you have to draw a line this. And according to this strategy, it is better to use a
[01:34] above as well as below. opens at 9.15, and it will take 15 minutes to make this
[01:46] not be able to see any candle ahead of this at that time. so here, because the chart has already been made, it
[01:59] are using this example. Now, after this, suppose the share price goes above this, That is, according to this strategy, whenever there is a
[02:16] proper gap opening in a stock, then you have to hold a And you have to draw a line at its high point. Now, if the share price goes above the high point, then you
[02:32] And along with this, you have to put your stop loss at its So, in this case, you would have bought here, and your stop Now, if we talk about the target, then see, according to
[02:47] But if you have the knowledge of the candlestick pattern, feel that the share price can fall from here, then you can
[02:59] Now, in this case, suppose you would have bought here, and would have gone up to here. So, this strategy is very simple.
[03:13] Now, if you want to be more confirmed in this, then you can You have to go to the indicator section and apply the Now, as soon as you apply the volume indicator, then you
[03:27] Now, if the volume is also increased with the gap-up opening, like in this case, you can see that the volume is So, if the volume is also increased and there is a gap-up
[03:39] opening with it, then from here, we can be more confirmed That is, the price can increase. the stop loss.
[03:52] I will give you another example of gap-up opening. So, I have already marked this example here. in this stock as well.
[04:05] line there. So, after this, as soon as a candle closes above it, then So, in this case, you would have bought here.
[04:19] And after this, for the target, I have told you that if you price can fall, then you can take the target up to there. pattern, then we have made a free playlist on it.
[04:34] description from where you can learn the complete Your stop loss would have been here. Now, I am not saying that you will catch the top.
[04:50] have earned a good profit from here. Now, let's talk about the gap-down opening where you will So, here you can see that the gap-down opening has happened
[05:05] Now, how will we know what is the gap-down opening? candle of today, the candle before that was closed here. Whereas, the candle of the next day opens here.
[05:21] So, here also, we have to do the same. then you have to draw a line like this from above and below.
[05:33] short-selling, because the gap-down opening has happened, you will short there. Your stop loss will be here because you are short-selling
[05:49] And for the target, until you get a candlestick pattern with which you think that the price can increase, you can So, in this case, you could have taken the target up to
[06:02] It is very important to show this example because I want to So, I also show you that this strategy will not always work. this stock.
[06:17] And the candle of the next day opens here. So, you would have drawn a line here.
[06:29] After that, it was possible that here, you would have seen And you would have bought here. And your stop-loss would have hit here and you would have
[06:42] So, in this case, because you were in a hurry to buy, And many times, stop-loss also hits in every strategy. But if you buy in a hurry, then there can also be a loss.
[06:55] yourself. will you know which stock has a gap-up opening or which So, for this, you simply have to go to Google and search
[07:11] So, here you search for gap-up open stocks. will happen, you will get to see it in the Money Control Or in the charting website, there are many screeners where
[07:26] So, in this way, you can use the gap-up and gap-down Now, the biggest problem of this strategy is that in this Because we have to focus on the first candle.
[07:41] So, it is best for beginners to try this strategy first. getting results. But first, go and test it a little.
[07:57] Because many times, I am explaining some things to you. And you applied it. So, first apply it yourself and see.
[08:09] And after that, try it. If you want to open the best Demat account for trading, So, do check the description.
[08:22] And yes, for more such information, do subscribe to the channel.