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INTRADAY trading is one of the domains of several types of traders: the courageous, the hardworking, the skilled and the foolish. In order not to fall in the category of the foolish, one would be well-advised to be aware of the levels that other traders take account of. Here is the logic behind the 2 simplest ones.

Each day, various end-of-day trading systems decide on a direction and then place orders above and below the previous day’s high or low. This is the “classic” breakout system. There are also systems that aim to fade the breakout of these levels. Thus, you expect in general to see plenty of volume around these areas. The result is that they are prime candidates for choppiness on the 5 and 15 minute charts.

Knowing this, you know not to take trades too close to these levels, or to suspect the market of catching the unwary with fake setups at these levels. You also know that when you are in profit, to take some off the table and be more defensive at these key levels. Easy when you know it. When you don’t…

With best wishes for your trading,

Kaye Lee
Private Fund Trader/Head Trader Consultant
www.straighttalktrading.com
“We take your trading seriously. You should too. Make It Pay.” 
– Due to the demanding nature of personal attention required to provide trading success, only a few personal mentoring spaces are made available. Nothing personal – our own trading comes first, and if we commit to helping you, we want to do our best. Enquire via the Straight Talk Trading website form (bottom of page). First come, first served.

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