How to choose stocks for Intraday
- First thing you should know about BETA and Change in Trend.
- Then Market Opening
- Open is above the high or blow the Low
- Stock open % is > or < or = Beta
- Stock open % = or > (Nifty open % x Beta)
- Then 9.15am to 9.45 market movement
- Stock High Low at 9.45
Beta and market open% price place important role to predict market trend avoid stocks not to trade
What is BETA?
Beta is calculated using regression analysis, and you can think of beta as the tendency of a security's returns to respond to swings in the market. A beta of 1 indicates that the security's price will move with the market. A beta of less than 1 means that the security will be less volatile than the market. A beta of greater than 1 indicates that the security's price will be more volatile than the market.
What is Change in TREND?
Overbought & OverSold
Overbought means either a sharp percentage increase in prices over a few days that is larger than normal, or a growing number of consecutive days of prices moving in the same direction. For example, stocks may be overbought because they have jumped 5 percent in three days -- more than usual -- or because they have closed up for six days in a row -- also unusual. Oversold means the opposite: A steep decline or growing number of consecutive days on which prices closed.
When a stock is overbought, the implication is that buying has pushed the price too far up and a reaction, called a price pullback, is expected. When a stock is oversold, the implication is that selling has pushed the price too far down and a reaction, called a price bounce, is expected down.
https://en.wikipedia.org/wiki/Market_trend
Steps to Be Followed:
You want to Be very Stirct on these steps. if you missed single parameter then everthing will goes wrong.
- Choose stocks which hits low first and then crossing open and moving towards eg. hiting any of the traget at SELL side and crossing the targets at BUY side
- Select the stocks at BUY target0 in that choose NEUTRAL stocks.Check the step one. eg. Taking the 18 NOV stocks RELINFRA and TITAN both passes the STEP 1
- Then wait still the stocks cross (T1+T2)/2 which means when crosses the middle of Target1 and Target2,eg. TITAN passed Step3 and RELINFRA Failed
Steps to Be Followed for Short Sale:
Follow the same steps as Buying but just reversing it
Timing- First high want to be touched then it should travel towards the tragets in Sell side.
You should use the target in the SELL side T0 T1 T2 rest all same.
