Intraday Trading SuccessAs a trader, I've developed my edge mostly by combining price action momentum, risk and asset sentiment, and currency strength for intraday trading success. Here's how it works:
1️⃣ Price Action Momentum: By analyzing chart patterns, candlestick formations, price structure and trend dynamics, I can spot price action momentum. These observations reveal preferable intraday direction for high-probability trades.
2️⃣ Gauging Risk Sentiment: Keeping a keen eye on market sentiment helps me understand the broader risk appetite and the tone for any specific currency that session. Risk-on or risk-off sentiment impacts forex pairs differently, also guiding my trade selection.
3️⃣ Currency Strength Analysis: I assess currency strength using various tools like currency strength meters (available for free all over the place) and relative sentiment strength. Strong currencies are paired with weak ones for optimal intraday trend trades and being on the lookout for any divergence from baseline sentiment provides great mean reversion opportunities too.
4️⃣ Confluence of Factors: I look for confluence, where price action momentum aligns with favorable sentiment and robust currency strength. This trifecta enhances trade confidence and conviction. Then it's all about the right technical entries.
5️⃣ Timeframe Synergy: I try to ensure harmony between short-term and higher timeframe trends when selecting a preferred bias. My intraday setups align with the broader market direction for more robust trades but the time horizon for the trade idea still dictates what timeframe data I give more weight to.
6️⃣ Gains Optimization: By utilizing damage control techniques and setting realistic take-profit levels based on price action and key support/resistance zones, I optimize gains expectancy for better risk management. Risk-reward is another mainstream cookie-cutter influencer-regurgitated pile of dung I have never paid attention to in over 10 years of successful trading; we have gains potential and risk management and as long as these line up according to your rule-set, the RR means nada de nada.
7️⃣ Continuous Learning: I remain a student and continuously learn from my trades and market developments. Adapting to changing conditions is vital for sustainable trading success.
Combining price action momentum, sentiment, and currency strength has transformed my intraday trading game over the years. This approach allows me to spot high-probability setups, manage risk, and ride markets.
