This is also one of the most popular day trading technique. The day trading recommendations, which you receive from Technical Experts, helps you to do day trading without making much calculations and analysis. Various support and resistance levels of your recommended stocks are given to you in advance and your job is simply to observe the price action of your recommended stocks and take decisions based on the predetermined support and resistance levels.

Before taking trading decisions you should simply confirm your profitability by calculating the day trading risk index, understanding and analyzing the market direction, analyzing volumes and analyzing the price and volume chart to understand favorable or un-favorable Technical Analysis formations.

TO SUCCESSFULLY USE THIS TECHNIQUE:

(a). First you should purchase or get free day trading recommendations with 2 to 3 clear support and resistance levels in highly liquid stocks, actively traded stocks and large cap stocks from Stock Market Technical Experts.

 

(b). If the price of your recommended stock took support near support levels, or if the price is strongly moving in upward direction towards 2nd resistance level after crossing 1st resistance level, you can consider buying that stock to exit at next resistance level after booking your profit.

IMPORTANT: If your recommended stock is moving in between 1st and 2nd resistance level, you should consider the 1st resistance level as immediate support level, similarly if it is moving in between 2nd and 3rd resistance level, you should consider the 2nd resistance level as immediate support level. In the same way if you enter into a stock at 3rd support level, you should consider the 2nd support level as immediate resistance level or your target level and if you enter at 2nd support level, you should consider the 1st support level as your immediate resistance level or your target level.

(c).To use this technique effectively, you should day trade in your own place using your own personal computer and internet connection. You should open a trading account with virtual Trader Terminal facility, real time price and volume charts, streaming quotes, immediate buy and sell order execution, real time price updates etc.,

(d). You should compulsorily observe the price charts every time before taking buying decision. If the chart formation (according to various technical analysis formations) is positive or neutral, you can enter into that stock. If the chart formation is negative you should stay away from that stock.

(e). Before entering into any stock, you should check the intra day line chart for any uptrend breakdowns, reversal formations at tops, downtrends etc., to stay away from that stock.

(f). If the chart formations supports the price action, then you can consider it as a strong BUY signal.

Source: Srinu

 

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