Day Trading Technical Analysis Examples

*3 examples of techincal day trade set ups using my own strategy*

Happy Friday to you all. I am slowing down my trading for Christmas now so I have no more new techincal analysis to share with you this week. Instead I am going to show you some example day trades and talk you through the pre-trade analysis and trade management of each one.

Day trading isn’t for everyone, I know this. Personally, I rarely day trade because you have to be in front of the charts for a lot of screen time in order to catch the perfect entry point and manage the trade on the lower timeframes. That being said, a lot of people do day trade and it can be very beneficial for quick account growth if you can consistently lock in 0.5% or 1% returns per day.

Day trading is speculation in securities, specifically buying and selling financial instruments within the same trading day, such that all positions are closed before the market closes for the trading day. Traders who trade in this capacity with the motive of profit are therefore speculators. Taken from Wikipedia.

Although I consider this style of trading to be “day trading” I do allow myself to hold positions overnight if I have my exposure under control. I will not hold day trade positions over the weekend. Its also good to note that the FX markets do run continuously from 10pm Sunday night (GMT) until 10pm Friday night so there are no extended market closures until the weekend.

Trade Example 1: GBPAUD FX Currency Pair

GBPAUD 15 minute timeframe chart
(pre trade entry)

Pre Trade Analysis. The bearish trend was broken and signalled by the break of the bearish trendline, EMA’s converging and previous lower highs broken with higher highs made. A new bullish trendline was supporting price, there was clear daily buying now with price being held up and making new highs lows throughout the previous trading day.

GBPAUD 15 minute timeframe chart

Trade Management. Price bounced off the bullish trendline and daily pivot level to confirm the trend and make a new higher low. At this point, you could take your profits at the 1st daily resistance level bringing in approximately 3R in potential returns.

GBPAUD 15 minute timeframe chart
(post trade)

Trade Management. Holding the long position through the break of the daily R1 level would have proved massively rewarding. Price carried on to break above daily R2 and then formed resistance just below R3. Taking profits here would have resulted in a potential return of over 8R.

Trade Example 2: Dow Jones Index (US30USD)

Dow Jones Index 15 minute timeframe chart
(pre trade entry)

Pre Trade Analysis. Price had bounced off of a large daily support zone earlier in the week. Higher lows and higher highs were made before price reached the new bullish trendline and bounced from it. Price closed above the daily pivot level and the EMA’s were aligned for bullish daily buying.

Dow Jones Index 15 minute timeframe chart
(post trade)

Trade Management. If you did not want to carry the position over night then closing just before the daily market close would still have resulted in a little profit of around 1.3R. Alternatively, removing exposure at market close and holding the trade overnight would have meant the profit target at the daily R1 level was reached. This would have resulted in a potential return of 3R.

Trade Example 3: EURUSD FX Currency Pair

EURUSD 15 minute timeframe chart
(pre trade)

Pre Trade Analysis. Much like the other two examples, there was clear bullish daily buying trend in place. This was supported by the trendline shown on the chart, the EMA alignment and price making higher highs and higher lows. Entering a long position on the lows of the trading day after price bounced off the trendline and daily pivot level.

EURUSD 15 minute timeframe chart
(post trade)

Trade Management. The trendline held and daily buying continued after enter a long position. Price rejected the daily R1 level where the first profit target was at so I would have closed my long position here. If I had held the position through the break of the R1 level then I would have been forced to close it at the Friday market close for almost exactly the same return of 1.5R.

End Note:

There are 3 trade examples here of day trade positions (all long positions) using the same set of trading rules with varying profit ratios. Sometimes it benefits the trader to hold the position and sometimes it doesn’t but so long as you keep your exposure managed then you should come out profitable in the long run.

You will notice that every trade example has one thing in common… they are all trading with the direction of trend.

If you are interested in learning more about my day trading strategy then please feel free to contact me via the blog site or buy my Day Trading Strategy Guide.

Day trading is also covered in great detail within my Mastering the Markets – Retail Trading Course. You can pre-order the course right now by clicking on the link below!

Useful Links:

All my technical analysis is done using the TradingView platform. You can get access via the link below.

My preferred broker of choice is IC Markets. Low spreads and trading costs really help long term profitability. A link to their site is below.

Thanks for reading and please don’t forget to LIKE, SHARE and FOLLOW my blog to stay up to date with the latest market analysis and trading education posts.

DISCLAIMER: None of the information posted on this site is to be considered investment/financial advice. Trading is high risk and you should only trade with money you can afford to lose.

%d bloggers like this:
search previous next tag category expand menu location phone mail time cart zoom edit close