The Fifteen Minute Rule & Lessons in Technical Trading. – Sudarshan Sukhani Blog (2024)

FAQs

What is the 15 minute rule in trading? ›

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.

A 15-minute trading strategy provides a structured approach to identifying and executing profitable trades within a short time frame. By focusing on short-term price movements, traders can minimize their risk exposure while potentially maximizing their profits.

Rule 1: Always Use a Trading Plan

You need a trading plan because it can assist you with making coherent trading decisions and define the boundaries of your optimal trade. A decent trading plan will assist you with avoiding making passionate decisions without giving it much thought.

It is a high-stakes game where many are lured by the promise of quick riches but ultimately face harsh realities. One of the harsh realities of trading is the “Rule of 90,” which suggests that 90% of new traders lose 90% of their starting capital within 90 days of their first trade.

15-minute chart: It is a popular type of intraday time frame which tends to balance capturing short term moves with filtering out noise. Key support/resistance and trend signals can be seen clearly. 30-minute chart: This chart is suitable for swing trading; less noise than lower time frames.

For day trading, 15-minute charts and 30-minute charts are the offer optimal results. Day traders who use indicators in their day trading strategy can use a 15-minute or lower time frame. In the case of price action-based trading, a combination of the 15-minute and 30-minute time frames proves to be highly effective.

Coined by Carlos Moreno, an associate professor at the Sorbonne Business School in Paris, the concept of 15-minute cities became popularized in 2019 after Anne Hidalgo, Paris's mayor, adopted it as policy. It was first introduced at the United Nations COP21 summit in 2015, when the Paris Agreement was adopted.

In brief, it's where we advise you to drop everything, become 100% focused on the problem and try to come up with a solution. If, after 15 minutes, you can't solve the problem, then it's time to ask someone for help. Your time is valuable (particularly if you are paid to work on a project).

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.

One of the golden rules of trading is to always prioritize risk management. This means determining how much you are willing to risk on each trade and setting appropriate stop-loss orders to limit potential losses.

What are the three golden rules of trading? ›

Let profits run and cut losses short Stop losses should never be moved away from the market. Be disciplined with yourself, when your stop loss level is touched, get out. If a trade is proving profitable, don't be afraid to track 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. One time to trade, the same time every day.

One of the biggest reasons traders lose money is a lack of knowledge and education. Many people are drawn to trading because they believe it's a way to make quick money without investing much time or effort. However, this is a dangerous misconception that often leads to losses.

While stock market investors rely on several rules to formulate their investment strategies, the 80-20 rule remains the most famous. Before we proceed, if you're wondering, 'what is the 80-20 rule? ' - it simply means that 80% of your portfolio's gains come from 20% of your investments.

The strategy is very simple: count how many days, hours, or bars a run-up or a sell-off has transpired. Then on the third, fifth, or seventh bar, look for a bounce in the opposite direction. Too easy? Perhaps, but it's uncanny how often it happens.

Clear guidelines: The 5-3-1 strategy provides clear and straightforward guidelines for traders. The principles of choosing five currency pairs, developing three trading strategies, and selecting one specific time of day offer a structured approach, reducing ambiguity and enhancing decision-making.

It is not a hard and fast rule, but rather a guideline that has been observed by many traders over the years. The logic behind this rule is that if the market has not reversed by 11 am EST, it is less likely to experience a significant trend reversal during the remainder of the trading day.

This rule suggests that a stock's price tends to move in cycles, with the first 3 days after a major event often showing the most significant price change. Then, there's usually a period of around 30 days where the stock's price stabilizes or corrects before potentially starting a new cycle [1].