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 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.
If you use this technique, though, a few caveats are in order to avoid whipsaws and other market traps. The most common whipsaw is a trading range that lasts longer than 15 minutes. If an obvious range builds in 20, 25 or even 30 minutes , use those to define your support and resistance levels. Also consider the higher noise level in the morning. A breakout that extends only a tick or two can be easily reversed and trap you in a sudden loss. So let others take the bait at these levels, while you find pullbacks and narrow range bars for trade execution.
Buy Rules :
– Stock break his 15 minute opening range (Trade-Ideas alert : 15 minute opening range breakout)
Sell Rules :
– Sell the stock after 2 hours.
Here is some suggestions of what you can do :
– Don't close the winning trades after 2 hours and let your profit run.
– Close position if it show a bearish pattern.
– Use a profit target to close positions.