Top 5 Intraday Trading Strategies for 2024

New Delhi: Intraday trading, commonly referred to as day trading, is the purchase and sale of financial assets on the same trading day. This trading form is not for achieving long-term returns; rather, it is about acting quickly based on short-term price fluctuations. 

Intraday trading strategies help traders in the market’s high and low swings to generate income in real-time. Rapid action in response to market fluctuations is critical, whether you use a trade app or traditional trading methods. 
 

What are the top 5 intraday trading strategies for 2024? Keep reading the article to learn more and stay updated and alert when trading in the market.

Best Intraday Trading Strategies

Following are the five intraday trading strategies that could be effective in 2024:

1. Momentum Trading
Momentum trading is about identifying stocks with strong price movements and significant trading volumes. Traders identify trends and ride those trends by buying into hot sectors when prices are climbing and selling short during bear markets.

They like to play the bodies in motion and believe that the market has enough momentum to continue to trend in the same direction. It is characterized by a short time pace and fast decision-making, and traders can engage in numerous trades in the same trading day.

As long as a stock is rising or falling at a high rate, the momentum trader will take part in the market.

2. Breakout Trading

One way of generating profits and acting proactively in the markets is through breakout trading. It seeks to identify stocks breaking out of established trading ranges or chart patterns by constantly tracking price movement and volume and identifying critical breaks above resistance levels or below support levels. 

Traders enter positions in the direction the stock has broken out whenever a breakout is confirmed and start to gain momentum, looking for a longer-term price movement. 

However, accordingly, traders place stop-loss orders once price levels are broken to minimize potential losses in the event the break fails. 

The key to a successful practice is correctly identifying the level at which the break will occur and executing trades in a disciplined manner.

3. Range Trading

Range trading means finding stocks that move within a set price range. Traders buy at the low end and sell at the high end of this range. 

They watch for support (the lower limit) and resistance (the upper limit) levels. When the stock approaches support, they buy, expecting it to rise. Conversely, near resistance, they sell, expecting it to fall. 

This strategy banks on the regular pattern of price movements within the range and needs careful timing to enter and exit trades effectively.

4. Scalping Strategy 

Scalping is a strategy in day trading where traders make lots of quick trades to earn from small price changes. They pick assets that are easy to buy and sell fast, aiming to profit from even tiny price shifts. Scalpers don't hold onto their trades for long, sometimes just for seconds. 

It needs quick thinking and access to live market info. Scalpers might use borrowed money to increase their earnings, but this also raises their risk. 

To succeed in scalping, traders need to stick to strict rules, make quick decisions, and be ready to act in fast-changing markets.

5. Moving Average Crossover Strategy

Moving Average Crossover Strategy simply compares two moving averages, one that is shorter and the other is longer. It is typical to use the 50-period moving average compared to the 200-period one.

As the shorter-term average moves above the longer-term one, it can be seen as a potential uptrend; thus, this analysis suggests a buy entry. 

On the contrary, a shorter-term average that moves below the longer-term one can mean a downtrend and, therefore, a sell opportunity. 

Generally, intraday traders use these points to enter and leave trades, benefiting from the strategy to determine the growing and failing trends during the intraday.

Conclusion

It's important to learn and use the best intraday trading strategies for 2024 to succeed in today's time. Stay informed, be disciplined, and adjust your strategy when needed to handle market changes well. Always manage risks wisely for steady profits. If you're looking for a good trading platform, check out Dhan. It's easy to use and offers great features to improve your trading.