August 2, 2015

How to identify stocks making new high/ low intraday

A stock making a new high or low intraday can offer an excellent trading opportunity. You can do some additional filtering by looking at EOD chart to confirm a breakout and then start trading.

I am describing a method where you can identify this high/ low breakout by using your broker provided trading software. This is working with RKSV terminal as well as NSE NOW terminal. I am sure other terminals will also offer some sort of a similar feature.

You do NOT need any 3rd party charting software or datafeed.

Here is how to go about it.

In RKSV, I have made a market watch of 35-40 stocks... these are the most liquid ones. Let's assume that from now on, this will be the stock universe for daytrading.

Next step .. right click anywhere on the market watch and click on customize option. Alternatively, in the menu bar, click on Preferences - User Settings - Market Watch.

You will see the following box:

Select the colors (BackGround) for the Market Events as shown and then click Apply - then OK.

Now whenever a stock makes a new intraday high or low, the stock row will flash with the indicated color. At this point, you should then inspect the intraday ( and EOD) chart and then decide whether to initiate a trade or not.

And this is a real example... SSLT made a new intraday low.

And this is a real example of 2 stocks making new intraday highs.

- The stock row will also flash with a different color if the stock makes a lifetime high or low.
- You should consider these signals after 30 min of market open so that some trading range has developed.
- For increased reliability, ensure the stock has already moved by 1%

Hope this helps.

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