Day Trading- Long or Short
Day Trading is one the hardest things to succeed in stock market. One of the tools is using filters. Filters are used to determine which side of the market we should trade from the long side or the shortside.
4 Different Methods to acquire a Day Trading Bias
Prior Day High/Low - If the price is above prior day high then the bias is long. If price is below prior day low then the bias is short.
Opening Range - If price is below the first 15mins or 30 mins then price is considered weak and if price is above the opening range then it is considered strong. This is not as strong a filter as when using Prior Day High/Low
Moving Average – Trader use Moving Averages a lot. They use them to determine the trend and in this is case they do the same. If the trend is down then their bias is short and if the trend is up their bias is long.
Phase Analysis - This is just like Moving Average, something we practically use for every strategy. When market is in a phase 2 then our bias is long and when market is in a phase 4 we can go for short.