5 Intraday Trading Strategies: Proven Ways to Trade Profitably

In an age of instant gratification from fast food to faster data many traders bypass the grind of back-testing strategies. But there’s a valid reason behind this: when a strategy has been stress-tested by countless traders and still holds up, retesting it might seem redundant. 

Most seasoned market participants begin by adopting popular strategies and then fine tune them to suit their unique trading temperament. Let’s explore five intraday strategies that continue to remain effective used by professionals and newcomers alike. 

1. Opening Range Breakout (ORB) Strategy 

The Opening Range Breakout is among the most straightforward and widely used intraday setups. Its simplicity lies in the fact that it requires no indicators and can be implemented by even a beginner. 

As the name implies, the strategy revolves around the price movement during the initial moments of the trading session. Traders define a range typically using the high and low of the first 15 minutes (some opt for 5 or 30 minutes) and use this range as a decision-making framework. 

• Buy if the price breaks above the upper limit of the defined range 

• Sell if the price drops below the lower boundary 

• Stop-loss can be placed at the opposite end or the mid-point of the range 

When tested over a 5-day period on Bank Nifty futures, the extreme price point was captured on 3 occasions, validating the strategy’s premise. Proper risk control and lot sizing are key to optimizing outcomes. This approach is also suitable for trading with futures and options (F&O) on m.Stock. 

2. Bollinger Bands Strategy 

Bollinger Bands help define the expected trading range of a stock based on its standard deviation. This allows traders to identify high-probability reversal zones. 

For this strategy: 

• Use standard settings: 20-period with 2 standard deviations 

• Apply it on a 3-minute timeframe (as done on Bank Nifty) 

The logic is straightforward: 

• If the price touches or breaks the upper band, there's a strong likelihood of a pullback 

• If the price breaches the lower band, a rebound is probable 

In one case study, six trades were identified in a single day using this setup, of which five were profitable. The lone loss was minor. This strategy is also adaptable for F&O positions through m.Stock’s trading interface. 

3. Relative Strength Index (RSI) 

The Relative Strength Index (RSI) is a popular momentum indicator used to identify overbought and oversold market conditions. 

• RSI above 70 typically signals overbought zones → ideal for short positions 

• RSI below 30 indicates oversold conditions → suited for long trades 

On a 5-minute Bank Nifty chart, a trade can be initiated as RSI exits these zones. 

• Entry points can be tweaked by adjusting the RSI period. 

• Lower periods for aggressive trades 

• Higher periods for conservative entries 

Exit rules can vary, but combining RSI with price action confirmation helps improve accuracy. 

4. Moving Average Crossovers 

One of the most foundational techniques in technical analysis, moving average crossovers signal trend direction and momentum shifts. 

In this version: 

• Use an 8-period EMA and a 21-period EMA 

• Buy signal: 8 EMA crosses above 21 EMA 

• Sell signal: 8 EMA crosses below 21 EMA 

While not all crossover trades are winners, the profitable ones often produce significant gains. The key is patience and not getting discouraged by frequent small losses. This method is effective on short timeframes, like the 5-minute chart used for Bank Nifty. 

5. Candlestick Patterns 

Candlestick trading has been used for centuries and continues to be a go-to method for technical traders. Its visual clarity and reliability make it an excellent choice for intraday setups. 

Two widely trusted patterns: 

• Shooting Star: Appears after an uptrend, indicating a reversal when accompanied by high volume 

• Hammer: Formed at the end of a downtrend, suggesting bullish reversal potential 

You don’t need to master every candlestick pattern. Instead: 

• Focus on 2–3 patterns initially 

• Build familiarity and confidence 

• Expand your pattern arsenal over time 

Charts featuring Bank Nifty show multiple Hammer and Shooting Star patterns, which offer low-risk, high-reward opportunities across timeframes. 

Conclusion 

While there are countless intraday strategies available, the downfall for many traders lies in constantly switching strategies after experiencing minor setbacks. Success comes from mastering one approach, refining it through experience, and staying consistent even when trades don’t go as planned. Whether you're trading with technical setups or pattern recognition, m.Stock provides a robust platform for executing these proven strategies efficiently.