Is It Advisable To Sell At Intraday High And Buy At Intraday Low?

Discussion in 'General Trading Discussion' started by Advisorymandi, Jul 19, 2019.

  1. Advisorymandi

    Advisorymandi Member

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    The famous saying in the stock market is, “Buy low, sell high”. Now back to question: if it is advisable to sell at intraday high and buy at intraday low?

    The thing is, you cannot know if the high is intraday high and the low in intraday low until the end of the trading session and there is no indicator to identify the intraday high and low. Even if there is a way then there no one will place buy order until the arrival of required price i.e. intraday low and same goes for sellers.

    Instead, focus on one of the best available stock market tips – buy low and sell high (as also available on Advisorymandi platform). It may sound simple but it is also not easy to find out the too high or too low until the moment is over. The best way is to use the moving averages to see price fluctuation over time. Generally, investors track two moving averages – 50-day moving average and 200-day moving average. If the 50-day moving average crosses the 200-day moving average in upward direction then it is a ‘Buy Signal’ but if the 50-day moving average crosses the 200-day moving average in a downward direction then it is a ‘Sell Signal’.

    Hope, it will help you understand!
     
  2. J_C_Anderson

    J_C_Anderson Senior Investor

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    While it is quite difficult to sell at the intraday high, there are some strategies based on buying the intraday low. This approach would be suitable in the situation when there is a strong catalyst making you to have a long bias, but the price declines dut to other reasons. For example, a stock could move down on great news in case of it has been opened too high so it needs to have a correction or it just moves together with the broad market. In both these two cases and attempt to catch the low of the day (LOD) may help you to get into the position with an awesome risk-reward ratio. Sometimes it would be reasonable even to re-enter the position after being stopped out (of course if there is no massive selloff, otherwise it will turn into catching the falling knife).

    To be able to trade in such manner, you will need special strategy providing you with an efficient set of tools to detect potential reversal point. The main principles are based on confirmation by volume. As usual, the highest daily volume appears near the reversal. You can also use trendline breaching as an additional confirmation. Most of the reversals occur near the important price levels, so it would be useful to outline all important levels on daily chart. Some of the traders use price action to confirm the reversal - they are looking for strong upside movement after the long downtrend, but this tactic requires sufficient experience.
     
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  3. gowiththeflow

    gowiththeflow Senior Investor

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    What a strange question - yes of course you want to buy low and sell high. You will only know the intra-day high when the day is over. I am not sure what you are getting at.
     
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