Full transcript (1720 words)
In today's video, I am going to teach you such an easy strategy to do intraday trading, which even if you are a beginner, you can use it very easily. So, it's a very simple strategy. First, let's understand this strategy. So, this strategy is called gap up and gap down trading strategy. In this strategy, first of all, you have to find a stock, in which there is either gap up opening or gap down opening. First of all, let's talk about gap up opening. So, there are more than 5000 stocks in the stock market. So, there are at least 1-2 stocks daily, in which there is gap up or gap down opening. So, if there is a gap up opening in a stock, you can take a trade to buy in it. And if there is a gap down opening in a stock, you can take a trade to sell in it. So, first of all, let's talk about gap up opening. Now, what is gap up opening? So, you know that the share price moves like this. So, if you see any day in a stock, that the price of the stock closed below, but when it opens the next day, that is, today's day opens, then it goes up and opens here. This creates a gap in the middle. So, whenever you see such a scenario in a stock, and first of all, you see it as soon as the market opens, then what you have to do there, you have to see that the candle in which there is a gap up opening, you have to draw a line like this on it. And below that candle also, you have to draw a line like this. Here, we are using a 15-minute candle. And according to this strategy, it is better to use a 15-minute candle. So, in this way, we have to draw a line above as well as below. Now, because this is a 15-minute candle, the stock market opens at 9.15, and it will take 15 minutes to make this candle, that is, it will be ready by 9.30. Now, you will not be able to see any candle ahead of this at that time. Now, because we are just showing you an example to explain, so here, because the chart has already been made, it becomes easier for us to show the example, that's why we are using this example. So, here you have to draw two lines like this. Now, after this, suppose the share price goes above this, then you have to buy a trade here. That is, according to this strategy, whenever there is a proper gap opening in a stock, then you have to hold a candle first, which will be a 15-minute candle. And you have to draw a line at its high point. And you have to draw a line at its low point as well. Now, if the share price goes above the high point, then you have to buy a trade in that stock. And along with this, you have to put your stop loss at its lowest point. So, in this case, you would have bought here, and your stop loss would have been here. Now, if we talk about the target, then see, according to this strategy, there is no fixed rule for the target. But if you have the knowledge of the candlestick pattern, then if you see any candlestick pattern, from which you feel that the share price can fall from here, then you can take your target till there. Now, in this case, suppose you would have bought here, and your stop loss would have been here, then the share price would have gone up to here. So, you could have taken your target till here. So, this strategy is very simple. Now, if you want to be more confirmed in this, then you can use the volume indicator here. You have to go to the indicator section and apply the volume indicator. Now, as soon as you apply the volume indicator, then you will see some bars like this. Now, if the volume is also increased with the gap-up opening, like in this case, you can see that the volume is also increased. So, if the volume is also increased and there is a gap-up opening with it, then from here, we can be more confirmed that buyers are dominating in this stock. That is, the price can increase. Now, with this, you have understood where you have to apply the stop loss. Now, this is just one example. I will give you another example of gap-up opening. After that, we will also understand gap-down opening. So, I have already marked this example here. So, here also, you can see that there was a gap-up opening in this stock as well. So, in this case also, the top point you have to draw a line there. You have to draw a line at the bottom as well. So, after this, as soon as a candle closes above it, then you have to buy here. So, in this case, you would have bought here. Your stop loss would have been here. And after this, for the target, I have told you that if you get a candlestick pattern after which you feel that the price can fall, then you can take the target up to there. By the way, if you don't know about the candlestick pattern, then we have made a free playlist on it. You will get the link of the complete playlist in the description from where you can learn the complete candlestick pattern. So, here you would have bought. Your stop loss would have been here. And after that, you can see that the share price was very high. Now, I am not saying that you will catch the top. But if you would have sold here as well, then you could have earned a good profit from here. So, in this way, you can take the trade of buying in gap-up opening. Now, let's talk about the gap-down opening where you will take the trade of short-selling. So, here you can see that the gap-down opening has happened in this stock. Now, how will we know what is the gap-down opening? So, here you can see that this candle, which is the first candle of today, the candle before that was closed here. Whereas, the candle of the next day opens here. So, in this case, you can see a good gap. So, here also, we have to do the same. So, in this way, when our first 15-minute candle is made, then you have to draw a line like this from above and below. And after that, because here you will take the trade of short-selling, because the gap-down opening has happened, so in this case, as soon as a candle closes below it, then you will short there. So, in this case, you would have shorted here. Your stop loss will be here because you are short-selling in this case. And for the target, until you get a candlestick pattern with which you think that the price can increase, you can take the target up to there. So, in this case, you could have taken the target up to here. Now, here I will show you another example. It is very important to show this example because I want to be fair with you. So, I also show you that this strategy will not always work. So, here you can see that there was a gap-up opening in this stock. The candle before this was closed here. And the candle of the next day opens here. Now, in this case, you don't know the next pattern. So, you would have drawn a line here. You would have drawn a line here. After that, it was possible that here, you would have seen that the share price has reached here. And you would have bought here. Now, as soon as you buy, the price starts to fall. And your stop-loss would have hit here and you would have lost. So, in this case, because you were in a hurry to buy, that's why you would have lost. And many times, stop-loss also hits in every strategy. But if you buy in a hurry, then there can also be a loss. That's why it is very important to apply the strategy yourself. Now, here one problem that you will face a lot is that how will you know which stock has a gap-up opening or which stock has a gap-down opening. So, for this, you simply have to go to Google and search for gap-up and gap-down stocks. So, here you search for gap-up open stocks. As soon as you search, the day in which the gap-up opening will happen, you will get to see it in the Money Control website. Or in the charting website, there are many screeners where you will get to see it. So, in this way, you can use the gap-up and gap-down opening strategy. Now, the biggest problem of this strategy is that in this strategy, you will be able to take only one trade daily. Because we have to focus on the first candle. That you have to use the first candle of the day. So, it is best for beginners to try this strategy first. You can see that according to this strategy, you are getting results. So, you can use it. You can increase your capital with this. But first, go and test it a little. Test it yourself. Because many times, I am explaining some things to you. It is possible that you made a mistake in understanding. And you applied it. So that you don't make a loss there. So, first apply it yourself and see. Understand that it is working properly. And after that, try it. I hope you liked this video. If you want to open the best Demat account for trading, then I have given some good Demat account links in the description. So, do check the description. If you liked the video, then do like it. And yes, for more such information, do subscribe to the channel.