Mastering the Intraday Sutra: An intraday trading strategyMastering the Intraday Sutra: A Professional Guide to Trading Indian Markets with Precision
(Adapting Globex Strategy-Inspired Concepts to India’s Unique Trading Hours)
Introduction
The Intraday Sutra strategy is a systematic approach designed for India’s equity/futures markets, inspired by the principles of identifying key price levels (similar to the Globex "high/low" concept) but tailored to India’s fixed trading hours (9:15 AM – 3:30 PM). This strategy leverages prior-day price action, supply-demand zones, and disciplined risk management to capitalize on intraday opportunities. Below, we break down its components for clarity and repeatability.
Strategy Overview
1. Core Instruments
Indices: All indices
Stocks: Nifty 50 constituents for alignment with index momentum
2. Ideal Time Frames
5-minute charts: For granular entry/exit precision.
15-minute charts: To filter noise and align with broader intraday trends.
Key Levels: Prior-Day High/Low & Supply-Demand Zones
1. Plotting Prior-Day High (PDH) and Prior-Day Low (PDL)
Purpose: These levels act as psychological benchmarks.
Method:
- Manually mark PDH/PDL on your chart.
- Use Trading View indicators (e.g., “Previous Day High-Low”) for automation.
2. Identifying Supply-Demand Zones
-Supply Zone:
- Formation: Rally → Base → Drop (RBD) or Drop → Base → Drop (DBD).
- Action: Potential sell zone; price often reverses downward here.
- Demand Zone:
- Formation: Drop → Base → Rally (DBR) or Rally → Base → Rally (RBR).
- Action: Potential buy zone; price often reverses upward here.
Zone Validation Rules:
1. Structure: The “base” (consolidation) must be ≤6 candles; the breakout must show ≥2 impulsive candles.
2. Freshness: Only trade untested zones (no prior price interaction).
3. Zone Merging: Combine overlapping zones or prioritize the one with the best risk-reward ratio.
Entry & Trade Triggers
1. Breakout Confirmation
Short Entry: Triggered when price breaks above prior-day high (PDH) and retests a fresh supply zone.
Long Entry: Triggered when price breaks below prior-day low (PDL) and retests a fresh demand zone.
2. Order Placement
Buy Limit Orders: Set at the demand zone’s proximal line
Sell Limit Orders: Set at the supply zone’s proximal line
Risk Management Framework
1. Stop Loss Placement
Long Trades: Below the demand zone (mechanical rule) or 5% of the Daily Average True Range (ATR) below the distal line of demand
Short Trades: Above the supply zone (mechanical rule) or 5% of Daily ATR above the distal line of supply
2. Position Sizing
Risk ≤1-2% of capital per trade to preserve longevity.
Trade Management & Profit Targets
1. Initial Target: 2:1 Risk-Reward (2R).
Example: If risking ₹1000, target ₹2000 profit.
2. Trailing Stop : Move stop loss to breakeven at 2R, then trail for 3R+ using price structure (e.g., swing lows/highs).
3. Priority: Focus on “A+ Setups” where zones align with higher timeframes (for example a 5 mins zone within a 15 mins zone or higher)
Critical Success Factors
1. Timing is Everything
Optimal Entry Window: 9:15 AM – 11:00 AM (peak liquidity, institutional participation).
Avoid Late Trades: Post-2:00 PM entries often lack momentum for robust risk-reward outcomes.
2. Confluence with Higher Timeframes
- Strengthen signals by aligning 5/15-minute zones with hourly/daily support/resistance/supply/demand zones
3. Event-Driven Volatility
Capitalize on gaps from overnight global news (e.g., US Fed, crude oil prices) or domestic catalysts (RBI policies, earnings).
Tools & Execution
Charting: Trading View for automated PDH/PDL and zone plotting
Mindset: Discipline to avoid overtrading and stick to fresh zones.
Example: The example taken here is on the Nifty 15 mins chart. See how the price broke the previous day's low and reacted nicely from a prior higher quality demand zone. These levels can act as trap levels trapping most of the retail traders and investors on the opposite side of the trade. The price gave a nice bounce from the demand zone and went on to rally to the opposing supply zone giving a greater than 3:1 R:R.
Conclusion
The Intraday Sutra strategy combines technical precision with rigorous risk management, offering a structured way to navigate India’s time-bound markets. By focusing on prior-day extremes, fresh supply-demand zones, and strategic timing, traders can systematically exploit intraday inefficiencies. Remember: Consistency beats complexity. Back test rigorously, refine your process, and let discipline drive profitability.
Final Note: Always validate this strategy in a simulated environment before deploying live capital. Use Trading View Bar Replay functionality to test your strategy.
Markets evolve—stay adaptive!
Beartrap
Gravita-A support reversal you shouldn't miss!Gravita is looking strong to retest ATH levels soon.
Stock had given breakdown from trendline support which was a bear trap.
Stock formed double bottom near support and today gave a huge volume move.
If broader markets support, this stock can make new ATH!!
IIFL Finance-A risky potential trade!The stock IIFL finance has recently crashed post news release of RBI debarring the company from sanctioning and disbursing fresh gold loans.
However, such news based falls are good opportunity for long term investors to accumulate.
Short term traders can also be interested in this stock since it has started some recovery.
The stock can show sudden spike like the one seen in Polycab and Manappuram post news based fall.
Trade is risky but has a big potential.
TGV Sraac- A bear trap signalling a 2x return potential!TGV Sraac is a fundamentally strong small cap chemical company which is showing a strong reversal pattern.
Stock has given breakdown from support and formed a bear trap.
A big bullish candle has been formed last week.
Stock can give multibagger returns in long term. However, since stock is small cap, it is riskier to invest.
BTC - It s a sell right now.
Quite simply, BTC hit an important resistance (main trendline in dark red) daily RSI points to bearish divergence.
And a sale now. If it goes up a little more, I'll concider another beartrap.
Buys at HKEX:25 ,400 and HKEX:21 ,200 as macro structure remains bullish.
NOT A FINANCIAL ADVICE.
Liquidity Grab on PELAs the Market Improves and gives a bullish sentiment, PEL has formed a beautiful bear trap and gives a long possibility once the support zone is re entered.
Liquidity Grap- Is a smart money concept similar to stop loss hunting where the market gives a fake breakdown on low volume or a bad spread candle as visible here. The stops of many retail traders are hit as the market bounces back and takes off
Entry at 800
Target at 897
Stop loss 761
Keep It Simple
Institutional Buying Zone Looking at past data, it is visible that: whenever, reliance comes to this zone and breaks out, it rallies, candle after candle, and has given 18% and 30%
returns in almost 1 month. Reliance is at the same zone and at the bottom of market structure, it has formed 2 more bullish confirmations.
1. liquidity grab- Reliance broke the support zone and trapped short sellers and used that liquidity to burst out
2. Multiple Bearish Anomalies- As reliance approached the zone, it has a type of stopping volume, like a person slamming the brakes, red candles came with high volume but with very little downward price movement and started forming lower wicks.
Even a good time to buy for investments.
Target: 2754
Stop loss: 2180
Risk:Reward- 1:5
Keep It Simple
AartindAartind has been falling since 149 days and has reached its previous long term support and has formed a beautiful bear trap.
Bear trap logic- it has broken the support causing people to go short and after a few days the market moved higher on very high volume
trapping sellers and has broken the falling trednline
STOP LOSS: below the trap
Traget: 707.75
reliance bear trap reliance has been falling since 74 days and has reached its previous long term support and has formed a beautiful bear trap.
Bear trap logic- it has broken the support causing people to go short and after a few days the market moved higher on very high volume
trapping sellers and has broken the falling trednline
STOP LOSS: below the trap
Target: green line
Bear Trap in USDINRLast day bear trap is formed in USDINR, it simply means that it will be bullish for coming few days and can go up to at least high of double top i.e.,83.10 (might break that also).
Let us decode the sentiments during this candle formation,
On 26th when this big bearish candle gives closing below last swing low, people would have shorted it taking double top in consideration (putting SL above that breakout candle), now after last day big bullish candle there will be some fear among people having short position as it moved close to their SL. Once it move above 26th bearish candle a small rally on upside may come as the SL of all the short position will get hit.
Britannia traps the BEARS !Britannia has formed a beautiful bear trap and gives a perfect entry opportunity on above average volume taking support from the base of its triangle pattern.
Target can be taken as the height of the triangle.
Stop loss below the bear candle
Psychology behind the bear trap:On the break of the support, many people would short the market in hopes of it falling lower but as buying pressure took control, all these sellers are trapped on the bull side and have to cover their loss and additional buying will contribute to the upward push of price
Why BEAR-TRAP occurs? How to Avoid and Trade a BEAR-TRAP?What is a BEAR-TRAP?
--> BEAR-TRAP is a condition in the market where the Price gives a Breakdown below a Potential Support zone but quickly Reverses back above the Support without giving a follow up bearish candle.
Why a BEAR-TRAP occurs?
--> Big Players who are bullish on a specific stock would be wanting to buy a big quantity of shares at the best price , but there will be no enough sellers . Hence All Buy Orders of Big Players would not get filled. so what's the solution?
--> Big Players know that the Retailers have maximum of their StopLoss order's just below the Support.
--> Big Players will place Contra-Short Trades and will trigger the Stop-Loss Orders of the Retailers turning them into a Seller .Hence All Buy Orders of Big Players will get filled. .
--> New Breakdown Traders place Fresh Short-Sell Orders looking at the Breakdown and if its a F&O stock , Call-Sellers open new positions at ATM (At the money) Strikes. .
--> Now as All Buy Orders of Big Players got filled. . BIg players aggressively start moving the price up and trigger the Stop-Loss Orders of the New Breakdown Traders and Call-Sellers who entered looking at the Breakdown which ,again shoots up the price.
-->Hence All Bears are been Trapped.
How to avoid a BEAR-TRAP ?
--> Look at the Volumes on the Breakdown ! If the Volumes are Low , It is probably a Fake Breakdown! .
--> Wait for a follow up Bearish- Candle after the Breakdown Candle! i.e Take a entry only when the Low of the Breakdown-Candle breaks.
--> Check out if there is a significant Long-Unwinding if its a F&O stock.
How to trade a BEAR-TRAP ?
-->Check out for a Reversal Pattern soon after the Breakdown. Eg: Bullish Engulfing, Bullish Harami, Bullish Piercing .etc
--> This Reversal Candle Stick must close above the support.
-->Enter a Long Position above the high of this reversal candle .
Real Example!
--> NSE:POWERGRID was trading within a Rising Channel .
--> POWERGRID gave a Rising Channel Breakdown below 196 and gave a daily closing at 191. Perfect breakdown right?
-->Breakdown Traders entered here keeping their Stoploss above the POC or just above Psycological level 200. and Call Sellers would have Shorted the POWERGRID 200 CE STRIKE .
--> Check out the volumes on breakdown! Its very very low signifying its a Fake Breakdown.
--> POWERGRID on the following day made a Bullish Above Stomach Candlestick pattern and gave a closing above the support level 196.
-->Perfect Buy would be on 1HR Closing above the support level 196 on the next day.
-->Boom! Price made an Impulsive Movement after it triggered all the StopLoss Orders placed at Psycological level 200 by the Breakdown Traders and also due to the Short Covering at 200 CE STRIKE .
--> Wasn't it a perfect BEAR-TRAP Trade?
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BTCUSDT Might Pump BTCUSDT respecting a particular trendline on 4hr TF and as my earlier posts it is still valid and we looking forward for a good pump if it holds support between the trendline.
And I have kept two most useful MA one is MA8 for BTC's fast movement and 2nd is MA25 which is called savior if price holds above it. Let's see how it goes.
Your view and your perceptions are most welcome.
BTCUSDT following Trendline 4HR TFBTCUSDT respecting a particular trendline on 4hr TF, There we can see 2 times a clear bear traps occurred and currently previous scenario might repeat. However, there is also visible H&S which is mostly a bearish sign, Let's see next candle closing for more confirm movement.