Intraday concepts

The opening range

The high and low of the first fixed period after the open — commonly fifteen or thirty minutes. Opening range breakout trades a move beyond that band, on the reasoning that the first period establishes where overnight orders settled and a break of it shows new intent.

Day types

• Trend day — opens near one extreme and closes near the other. Breakouts work, pullbacks are shallow.
• Range day — oscillates between two levels. Breakouts fail and fading the edges works.
• The mistake that costs most: trading a range strategy on a trend day, or the reverse.

VWAP

VWAP = Σ(Price × Volume) ÷ Σ(Volume), reset each session. Institutions use it as a benchmark: buying below VWAP means you traded better than the day's average.

ATR — average true range — sizes the day. If a stock typically moves Rs 12 and it has already moved Rs 11, a breakout has little room left.