7 Intraday Principle

1. Trade using Gann angle.

2. Intraday trade using Fibonacci principle.
3. Mid point trading technique.
4. Price and Time squaring technique.
5. Intraday trade Fibonacci and 1-SD.
6. Intraday future trade using beta decoupling method.
7. Intraday in Option

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 Gann angle with volatility
Intraday technique- 1

1. Calculate expected price range from daily volatility.

2. Use the Gann angle 11 trend line angle factor to estimate the resistance and support price
ranges.
3. Resistances are current price or LTP or OPEN + resistance price range X Gann angle factor.
4. Supports are current price or LTP or OPEN - support price range X gann angle factor .
5. Buy sell decision : buy above 3 rd resistance trend line and sell below 3rd support trend line.
6. If price manage to cross 86.25 trend line then same cycle may continue for 2 more times.

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Intraday using Fibonacci and Daily volatility.

Intraday technique- 2
a. Calculate the daily volatility from past 10 days data.
b. Calculate the price range from daily volatility
c. Calculate buy and sell entry from 10th day LTP + 0.236*Price Range
d. If current date open is above or below your entry price, then it is a Gap day .
e. In gap day take the oldest data out and accommodate the open price in 10th day data and
recalculate volatility, price range. Buy and sell entry from Open price + 0.236*Price Range .
f. If the Current Price is above 3rd target level then repeat step e with Current price.

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 Mid point

Intraday technique- 3
1. Calculate the midpoint of high and low
2. Calculate price range between the midpoint and high.
3. Apply the 360-degree angle factor on it to identify the termination point.
4. Make trade entry at current price (i.e. buy if the price is above midpoint sell if the price below the
midpoint)
1st target = high+midpoint /2
2nd target = Termination+ high /2
3rd target = 2nd traget + termination /2

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Price and Time squaring technique.
Intraday technique- 4
Dynamic Gann Technique
a. Calculate the past candle gap using the day’s high and days low.
(High- Low)/High
b. Calculate the mid point of last 15 min candle
c. Expected high = Mid point + candle gap % of mid point
Expected low = Mid point – Candle gap% of mid point
d. Current Price above 15 degree of mid point and below 45 degree of mid point buy for
maximum target of 135 degree or expected high which ever is higher.
e. Current Price below 15 degree of mid point and above 45 degree of mid point buy for
maximum target of 135 degree or expected low which ever id lower.
f. If the daily volatility is used in place of candle gap then it becomes volatility with dynamic gann
technique.
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Volatility Action

1. In intraday basis if the daily absolute return of 1st hourly candle line( i.e. (high-low)/high *
100 )< the absolute return of second hourly candle then present-day volatility is going to fall
and vice versa.
2. If the action-1 is followed with a gap up or gap down opening in 3rd hour candle opening ,
then volatility is going to raise in the last hour of the trade.
3. if the action-1 is followed with gap and bridging of gap in the 3rd hour candel then you can
expect the “U” turn in the price.

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Beta decoupling

Intraday technique- 5

a. Calculate the stock beta taking past 10 days data

b. Identify the decoupling if any and predict the trend as per the volatility.
c. Ideal condition of buy (dependent) is –ve beta decoupling is between -1 to -2
d. Ideal condition of buy (independent )is +ve beta decoupling is between +1 to +2
e. Between -1 to +1 hedge 100%

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Intraday trade using beta decoupling Technique.

Intraday technique- 5
a. Calculate the net decoupling till previous day.
b. Take the 9:30 closing price to identify the decoupling in current day.
c. If the decoupling is in expanding trend then initiate the trade as per the decoupling behavior.
d. Book profit once the decoupling start recoupling.

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Fibonacci and 1-SD
Intraday technique- 6
What is 1 SD formula? Price range= (Price * volatility * square root of
day) /square root of 365
Scientific way to trade in option
Intraday technique- 7

a. Identify the correct strike: The strikes which will have less Theta decay or Time decay are
suitable for buying and strike which will have max theta decay are good for selling .
Rule 1: Strike which will fall in the trading band will have less theta decay or time decay
b. Choose whether to trade in call option or put option.
Rule 2: In uptrend break out buy call strikes falling on the uptrend trading band or sell put
strikes falling in uptrend trading band
a. Identify the entry price . Option trading entry price will be calculated using either Binomial or
Black and shoal price model.
b. Identify the profit targets : Option target must be calculated either using Delta, theta or using
price model.

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Option premium price analysis

a. It is often observed and experienced that rise in volatility happens with fall in the price of
underlying asset and vice versa.
b. The option premium used to rise if volatility rise in future and vice versa.
c. In the volatility rise or fall conditions, the option having higher IV produce less return
d. IV above 40% considered as the high volatility condition
e. IV between the 30 to 40 moderate volatility condition
f. Iv below 30% considered as low volatility condition
g. Adjustment need to be done if the strategy goes against the view

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