Entry-Exit Time

Entry-Exit Time for Intraday Trading Strategy

Entry-Exit Time for Intraday Trading Strategy is very important to make profits in the volatile markets.
Winning in Intraday trading needs a good entry and exit prices in Indian or any markets requires a deep study of the technicals, market behavior, and chart patterns to make a successful trade by following good money management skills and discipline. 

The best time to enter is to wait until the price comes back to the open after forming either a low or high and resumes in the opposite direction that is after the wick is formed, and moves crossing the open.
Always follow the longer time frame and trade looking at the shorter time frame for your right entry.

A trader once entered into a trade should carry trade for more than two hours for a particular trade in intraday trading unless there is a huge break down in a short trade or a huge break out in a long trade. If you think you have made a good profit, book your profits before it erodes and becomes a losing trade.

  In most of the trades, there will be a follow up of the previous day trading chart pattern and will be reflected in the first two hours when the (BTST or STBT traders book their positions) then a range-bound trade or aligning with the European markets takes place, and the last two hours will be deciding factor for the closing of the day and next day’s trade. (Position will be taken for BTST or STBT trades). By this analysis, if you have taken a position in the early hours it is better to close the position within two hours. Depending upon the market conditions and the movements of the stocks a long trade or a short trade can be taken for intraday trading.

Entry-exit time in Indian markets
Entry Exit time for Intraday trading Strategy in Indian markets


 In a day’s trade, if you look at the above candlestick there are three parts a lower shadow, an upper shadow and a real body the length of which depends on the strength of that script for the particular day. Trading depends mainly on the formation of this candlestick for the day and movements later on.

Professional traders take a position for the day and next day’s trade during the last two hours by moving the markets for their best entry levels and the volumes increase significantly during this time normally by taking out the stops placed at supports and resistances. Usually, the traders entering during these middle hours get hit severely on both sides because of the volatile movements.

During the last two hours, the trend may change, causing the candlestick turning green to red or red to green. This is the main cause of traders losing out because of holding the positions from open to close or for a long-duration in a losing setup. Traders should note that intraday trading is not position trading so it is better to exit when they make a good reasonable profit or with a small loss.

If you are not a professional trader and not able to analyze the European markets, international markets, technical chart reading, moving averages, data releases, current news, economic calendar it will be very difficult to trade during the middle and closing hours. So The best intraday trading time will be the first two hours of the day and after the wick is formed and by following all the trading rules set up by the trader.

In a 4H candlestick be idle for the first hour to check how the price is moving, if it makes a high or a low and comes back to open and you can take the trade for another two H1's when the trade is moving in the opposite direction.
If you look at any candlestick it will have a wick which is what happens at the beginning of the time frame and then moves into the actual movement of the trade or in the longer timeframe direction. 
Think about it and enter into the trade. 

When to best exit an intraday trade?

Entering a trade is very easy but when to exit an intraday trade is the most difficult of the trading job.
  • Exit your trades if you think you have made decent gains, do not wait for a jackpot, the gains may turn into losses, so exit before that. If you are sure of your jackpot call go for a trailing stop loss in case it reverses its position exit immediately before you are wiped out of your profits.
  • If your trade has turned against you and if you think you have no chances of making a profit exit with a small loss before it turns out to be huge.
  • If your trade remains where it is and you are not sure of where it is heading exit,  you can always enter after it shows its direction and starts moving.
  • If you made gains in the early morning trade exit immediately because that keeps you in good spirits and a positive frame of mind for the entire day.
  • If the decisions you take in the morning go wrong, the negative mood continues and the human mind keeps making errors of judgment because of the loss and more mistakes may happen it is better to be cautious.
  •  Make sure to put stops to all the trades, the stops depending upon the loss you can bear, or at the resistances and support levels. Only if you are thorough with your stops you can expect to make profits. Stops should not be placed more than 2% of the capital amount.