Traders turn to the 15 min chart trading strategy when looking for profits in the shortest period. The idea is to execute multiple buy/sell actions to benefit from the short-term price fluctuations in the market.
Let’s say you’re trading in the EUR/USD pair and notice minor price fluctuations. This may prompt you to adopt basic day trading strategies, only much quicker — within 15 minutes. With the 15 minute chart trading strategy, you’ll be buying/selling the pair as needed within this timeframe.
While the profit margin may be low in this case, if you do things right, you can maximize your gains.
What Is A 15Min Chart Trading Method?
The name says it clearly: the 15 minute day trading rule is a shorter form of day trading (within 15 minutes).
The idea is to spot a trend, buy/sell and then sell/buy within 15 minutes. Of course, you can buy multiple pairs and then sell multiple pairs within this time limit. In some cases, people may make a hundred transactions in this short period.
But for the 15 minute chart trading strategy to work, you must first successfully predict where the market is headed.
Which Indicators To Use For The 15-Minute Chart Trading Method?
Indicators help traders understand the current market condition and predict where the prices are headed. Winning day trading strategies involve effective indicators to help traders make informed decisions.
For the 15 minute day trading strategy, a combination of Exponential Moving Average indicators (5 EMA and 20 EMA) and the Supertrend Indicator work best. These indicators use current market data to help traders predict prices.
The Moving Average Convergence Divergence or MACD is another excellent indicator for this strategy.
Our xBrat Roller Coaster is a great trading indicator which takes the Stochastic/MACD Cross adds some points of control and gives signals, stops and trailing stops. The chart below shows a 15 minute trading chart for EURUSD with the xBrat Roller Coaster Trades printed on the chart.
15Min Chart Trading Strategy
To execute a 15 min chart trading strategy, the trader must first identify the current market trend using a suitable indicator. Let’s say, you do so for an hour, next you’ll start buying and selling (or vice versa) in 15-minute frames.
Using an average daily range trading strategy involving 15-minute trading bouts, you can make a decent profit.
However, if the market trend upsets, a single loss may be much more than your cumulated profits.
The 15-Minute Chart Trading Method. Traders turn to the 15 min chart trading strategy when looking for profits in the shortest period. The idea is to execute multiple buy/sell actions to benefit from the short-term price fluctuations in the market.
Main takeaway: the 10 or 15-minute chart is for people who want to focus on the large price movements throughout the day. They don't mind waiting longer for trades to open and close. They prefer cleaner movement and are likely after only one or two trades over multiple hours of trading.
To trade the Opening Range Breakout strategy, you want to allow the market to settle down for the first 15 minutes. You will often get a lot of volatility at the open, so this allows you to sit out the craziness of the opening bell and let the direction work itself out. Once the first 15 minutes are up, game on.
Head and Shoulders Pattern: The head and shoulders pattern is considered one of the most reliable chart patterns and is used to identify possible trend reversals.
Experts suggest that using 15-minute EMA is most effective for intraday trades that are carried out during periods of high market volatility. To interpret the 20 EMA, you need to compare it with the prevailing stock price. If the stock price is below the 20 EMA, it signals a possible downtrend.
Most traders will start by choosing one longer timeframe and another shorter timeframe. As a general rule, traders use a ratio of 1:4 or 1:6 when performing multiple timeframe analysis, where a four- or six-hour chart is used as the longer timeframe, and a one-hour chart is used as the lower timeframe.
Here is how. Let the index/stock trade for the first fifteen minutes and then use the high and low of this “fifteen minute range” as support and resistance levels. A buy signal is given when price exceeds the high of the 15 minute range after an up gap.
Pattern-based trading strategies for short-term and intraday trading. For day trading strategies, you can use all of the above chart patterns. Recommended time periods for market analysis are 5, 15 and 30 minute timeframes. In a short-term investment strategy for 1-2 days, you can use the hourly chart.
The 1-3-2 structure supposedly appears as a tree. The strategy profits from a small increase in the price of the underlying asset and maxes when the underlying closes at the middle option strike price at options expiration. Maximum profit equals middle strike minus lower strike minus the premium.
So if you're a novice, you may want to avoid trading during these volatile hours, or at least within the first hour. However, for seasoned day traders, the first 15 minutes following the opening bell is prime time, usually offering some of the biggest trades of the day on the initial trends.
The Opening Range Breakout (ORB) Strategy involves taking forex positions when the currency pair prices break below or above the previous day's high or low. The opening range price is what you see during the first trading hour.
A 100 percent trading strategy is an approach that involves investing all of your capital into a single trade. While this can be risky, it can also lead to significant profits if executed correctly.
Trend trading strategy. This strategy describes when a trader uses technical analysis to define a trend, and only enters trades in the direction of the pre-determined trend. The above is a famous trading motto and one of the most accurate in the markets.
One strategy that is quite popular among experienced options traders is known as the butterfly spread. This strategy allows a trader to enter into a trade with a high probability of profit, high-profit potential, and limited risk.
A buy signal is given when price exceeds the high of the 15 minute range after an up gap. A sell signal is given when price moves below the low of the 15 minute range after a down gap. It's a simple technique that works like a charm in many cases.
Analyzing the effectiveness of MACD settings on a 15-minute chart can provide insights into market momentum and trend reversals. For such a timeframe, consider a faster MACD setting like 8, 17, 9 to reflect the quick market changes.
The 5-3-1 strategy is especially helpful for new traders who may be overwhelmed by the dozens of currency pairs available and the 24-7 nature of the market. The numbers five, three, and one stand for: Five currency pairs to learn and trade. Three strategies to become an expert on and use with your trades.
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Introduction: My name is Cheryll Lueilwitz, I am a sparkling, clean, super, lucky, joyous, outstanding, lucky person who loves writing and wants to share my knowledge and understanding with you.
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