📋 Intraday Trading – Before Market Checklist
This checklist helps traders align with market conditions before placing any trades. Each point focuses on volume, volatility, and key price zones to filter high-probability trades. Here is the breakdown:
📘 Table of Contents
- 🔹 1. Mark OHLC of Previous Day
- 🔹 2. Note IV (India VIX)
- 🔹 3. IVP (Implied Volatility Percentile)
- 🔹 4. Analyze 5-Day OI Change
- 🔹 5. Intraday 3-Min OI Change
- 🔹 6. Market Profile Levels (VAH / VAL / POC)
- 🔹 7. Chart Settings & Indicators
- 🔹 🚦 How to Trade Using the Checklist
- 🔹 ✅ Quick Trade Guide (Table Format)
- 🔹 🛡️ Risk Management – Protecting Your Capital
1. Mark OHLC of Previous Day
OHLC stands for Open, High, Low, and Close of the previous trading day. These levels often act as support/resistance zones in intraday trading.
How to Use: Mark them on your chart and observe if the current price respects or breaks these levels. A break with volume may indicate trend continuation or reversal.
The simple act of plotting yesterday’s Open, High, Low, and Close (OHLC) levels can reveal where liquidity pooled and where large orders may re‑enter the market today. In this guide you’ll learn why these four prices matter, how to mark them quickly, and exact trade setups—from scalp to swing—that capitalize on the reactions around them. Grab your charts; let’s turn four static numbers into a reliable trading edge.
1. Why Yesterday’s OHLC Still Rules Today
- Psychology of Reference Points – Institutions and algorithms typically benchmark today’s price efficiency against yesterday’s extremes.
- Liquidity Pools – Orders cluster near prior highs/lows; breaks often cause rapid expansion.
- Implied Support & Resistance – Many intraday reversals begin exactly at these four prices.
2. Fast Way to Plot OHLC on Any Platform
- Switch to the daily timeframe and note the exact O/H/L/C.
- Return to your execution timeframe (5‑, 15‑, or 30‑minute).
- Create four horizontal lines—color‑code them for clarity.
Example: Low, Open, Close, High - Save the template so it auto‑loads each session.
3. High‑Probability Setups Around OHLC
🔹 Range‑Play at Yesterday’s High or Low
Idea: Fade the first intraday test of yesterday’s High (or Low) when accompanied by a momentum slowdown (e.g. RSI divergence or lower tick volumes).
Entry: Sell/short near the High (buy/long near the Low).
SL: 0.25%–0.35% beyond the level.
TP: Mid‑range of the day or previous Close.
Why it works: Early breakout attempts often fail as profit‑takers unload.
🔹 Break‑&‑Retest Trend Trade
Idea: Trade trend continuation after a clean close beyond yesterday’s High/Low with above‑average volume.
Entry: Wait for price to break, pull back, then print a bullish (or bearish) rejection wick on the same level.
SL: Below wick low (for longs) / above wick high (for shorts).
TP: 1.5–2× risk or next HTF supply/demand zone.
Tip: Add confluence with VWAP or 20‑EMA slope.
🔹 The “Inside Day” Squeeze
Idea: When today’s morning range fits entirely inside yesterday’s OHLC, prepare for a volatility expansion play.
Entry: Place conditional orders ±0.1% outside yesterday’s High and Low.
SL: Inside the opposite side of the range.
TP: 1% or use trailing stop via 13‑EMA crossover.
Note: Probability increases if ADX < 20 and Bollinger Band width is compressed.
4. Confirm Breakouts with Volume & Time‑of‑Day
A breakout without volume is a fake‑out waiting to happen. Check relative volume against the 20‑period average. Breaks in the first 45 minutes or the post‑lunch “power hour” (14:30–15:15 IST) tend to generate the largest follow‑through on Nifty 50 and index options.
5. Risk Management Blueprint
- Risk ≤ 1% of capital per trade.
- Hard‑stop orders only; no mental stops.
- Move to break‑even once 1R is achieved or after a confirmed 5‑/13‑EMA crossover in your favor.
6. Common Mistakes to Avoid
🔻 Chasing the breakout candle after it has already moved 0.4%+.
🔻 Ignoring higher timeframe bias—always cross‑check the hourly trend.
🔻 Skipping volume confirmation; low‑volume breaks revert fast.
7. Quick‑Reference Checklist (Print & Pin Near Your Screen)
- Plot yesterday’s OHLC before 9:15 AM.
- Identify pre‑market gap direction; note if it sits above or below any OHLC lines.
- Mark liquidity sweeps: Look for stop‑hunt wicks beyond High/Low.
- Confirm which side of the Open the first 15‑minute candle closes.
- Wait for either a range fade or break‑and‑retest as outlined above.
8. Final Thoughts
Yesterday’s OHLC remains one of the market’s simplest yet most potent signposts. Use it alongside reliable confirmation—volume spikes, EMA slope, or momentum oscillators—to avoid false breaks and catch genuine moves. Master these four lines, and you’ll spend less time guessing and more time banking profits.
2. Note IV (India VIX)
India VIX measures expected market volatility. A rising VIX suggests higher uncertainty and potential intraday swings.
📈 Understanding India VIX – The Pulse of Market Volatility
India VIX, or the Volatility Index, is often called the “Fear Gauge” of the Indian stock market. But for intraday traders, it’s more than just a sentiment tracker—it’s a real-time indicator of how aggressively or calmly the market is expected to move. Knowing how to read and react to India VIX can mean the difference between getting caught in wild swings or navigating them with confidence.
1. What Exactly Is India VIX?
India VIX reflects the market’s expectation of near-term volatility, based on Nifty 50 option prices. A higher VIX value means traders are expecting more significant price movements (volatility), while a lower VIX indicates expectations of calmer, more stable price action.
- High VIX = More fear, more uncertainty, and usually more price movement
- Low VIX = Confidence, stability, and slower price behavior
2. How to Use VIX in Intraday Trading
🔺 When India VIX is Rising (VIX ↑)
- ⚠️ **Expect wider candles and fast moves.** Avoid tight stop-losses—they will likely get hit.
- 📏 **Use wider stop-loss and target zones** to accommodate the volatility.
- 🚫 **Avoid over-leverage** or position sizing that’s too aggressive—it’s easy to get stopped out in both directions.
- 📊 **Focus on breakout setups** rather than mean-reversion. Fast momentum moves are more likely to succeed in high VIX.
🔻 When India VIX is Falling (VIX ↓)
- 💤 **Expect a more rangebound or sideways market.** Breakouts are less likely to sustain.
- 🎯 **Ideal for scalping or mean-reversion trades** using VWAP, Bollinger Bands, or RSI strategies.
- ✅ **Use tighter stop-loss and take-profit targets.** Market structure is more controlled.
- 📉 **Avoid chasing big momentum trades**—they’re less likely to follow through in low VIX environments.
3. VIX Zones and Their Meaning
| India VIX Value | Market Mood | Suggested Trading Style |
|---|---|---|
| 10–12 | Very Calm | Mean-reversion, scalping |
| 13–16 | Neutral to Mild | Range trading, early breakouts |
| 17–20 | Volatile | Breakout trades, trend-following |
| 21+ | Highly Volatile / Uncertain | Wide targets, minimal leverage |
4. Live Intraday Usage of India VIX
Check the live India VIX level before 9:30 AM and then again around 12:00 PM. If VIX is rising post‑open, it could mean the market is reacting to news or uncertainty. If VIX is falling steadily, it suggests traders are confident and prices may stay within a range.
🔍 Example:
Suppose Nifty opens flat but India VIX jumps from 12.8 to 14.5 within the first 30 minutes. That’s a sign of incoming volatility. You should:
- Widen your stop-loss
- Avoid counter-trend setups
- Watch for breakout candles on higher volume
5. VIX in Option Buying vs Selling
- 📈 High VIX Favors Buyers: Option premiums are expensive, but directional moves can reward buyers.
- 📉 Low VIX Favors Sellers: Theta decay works best when volatility is low and markets are slow-moving.
Smart traders align their option strategies based on VIX:
- High VIX → Buy options for breakout trades.
- Low VIX → Sell options in rangebound market setups.
6. Risk Management with VIX Awareness
Never ignore volatility when planning your trades. VIX is a reflection of collective market uncertainty. Use it to size your position smartly. During high VIX, reduce your quantity, focus more on structure and volume confirmation, and always manage SL rigorously.
7. Conclusion: Make VIX Your Daily Filter
India VIX isn’t just for long-term investors or fund managers—it’s an essential filter for every intraday trader. Use it to adjust your risk, choose the right setups, and time your entries better. Once you start watching it every morning, you’ll wonder how you ever traded without it.
Rule of Thumb: “High VIX – Go Light and Wide. Low VIX – Go Tight and Precise.”
How to Use:
- VIX ↑ = wider stop-loss, larger price swings, avoid over-leverage
- VIX ↓ = rangebound, safer to trade mean-reversion setups.
3. IVP (Implied Volatility Percentile)
IVP tells you where current IV stands relative to the past. For example, IVP = 20% means IV is lower than 80% of previous readings.
📊 Understanding IV Percentile (IVP) – A Must-Know for Option Traders
IV Percentile, or IVP, is one of the most underrated tools in options trading. It doesn’t just tell you if implied volatility (IV) is high or low—it tells you how today’s IV compares to past data. That makes IVP a smart filter to decide whether to buy or sell options, depending on how expensive or cheap premiums are.
1. What is IVP (Implied Volatility Percentile)?
IVP shows the percentage of days over a selected period (usually 1 year) when the implied volatility was lower than the current value.
- IVP = 20% → Current IV is lower than 80% of past readings → Options are cheap
- IVP = 80% → Current IV is higher than 80% of past readings → Options are expensive
Think of IVP like a thermometer for option pricing—it doesn't predict direction, but tells you how “hot” or “cold” premiums are compared to the past.
2. How to Use IVP for Smarter Options Trading
🔻 IVP < 30% – Options Are Cheap
- 💰 Ideal time to buy options (Calls or Puts)
- ✅ Better reward-to-risk for directional trades
- 🛠️ Strategies: Long Call, Long Put, Debit Spreads, Straddles if expecting a move
⚖️ IVP Between 30% – 50% – Neutral Zone
- ⚖️ Option prices are fairly valued
- 🔁 Choose strategies with defined risk-reward
- 🛠️ Strategies: Spreads (bull call, bear put), Iron Condor (if rangebound), or cautious buying
🔺 IVP > 70% – Options Are Expensive
- 💸 Premiums are high — best for experienced traders who can manage risk
- 📉 Time decay works in your favor
- 🛠️ Strategies: Selling options (covered call, naked put, iron condor)
- ⚠️ Use only if you understand margin, slippage, and risk control
3. Example: Trading Based on IVP
🎯 Scenario:
You're watching Nifty options and the IVP is 22%. You expect strong movement post-RBI news. Since options are cheap (low IVP), this is an ideal time to:
- ✅ Buy At-The-Money (ATM) Call or Put options based on your directional view
- 📈 If expecting big move but unsure of direction: Buy a Straddle or Strangle
Now imagine IVP is 85%:
- 🚫 Avoid buying naked options – too costly, premium erosion risk is high
- 💡 Instead: Sell far OTM options or use Iron Condor/Butterfly for premium capture
4. IVP vs IV – Don’t Confuse the Two!
| Metric | What It Tells You |
|---|---|
| Implied Volatility (IV) | Current volatility estimate based on option pricing |
| IV Percentile (IVP) | How today’s IV compares with historical levels |
Tip: IV can be high, but if it’s been even higher most of the year, IVP may still be low. That’s why IVP gives context.
5. Quick-Reference IVP Cheat Sheet
| IVP Level | Interpretation | Best Strategy |
|---|---|---|
| 0% – 30% | Options cheap | Buy options (Calls, Puts, Straddles) |
| 31% – 50% | Neutral pricing | Spreads, cautious directional trades |
| 51% – 70% | Above average IV | Mixed – spreads or limited selling |
| 71% – 100% | Options expensive | Sell options (if experienced) |
6. Final Thoughts
Smart option traders don’t just look at price—they look at volatility relative to the past. That’s what IVP shows. Add this to your daily checklist before trading Nifty or Bank Nifty options. It helps you choose not just the direction—but the right strategy.
Golden Rule: “Low IVP – Buy Options. High IVP – Sell Premium.”
How to Use:
- IVP < 30%: Options are cheap → Ideal for buying options
- IVP 30% - 50%: Neutral zone → Use spreads or limited exposure
- IVP > 70%: Options are expensive → Better to sell options (only if experienced)
4. Analyze 5-Day COI Change
.png)
Check the total OF Change in Open Interest (COI) over the past 5 days. This helps identify strong Support/Resistance levels based on where option writers are active.
📌 5-Day COI Analysis – Option Writers’ Footprint for Smart Intraday Trading
Every day, option writers leave behind clues in the form of Change in Open Interest (COI). By tracking these changes over the last 5 days, traders can identify powerful support and resistance zones—areas where institutions are most active. These zones can define your trading bias before the market even opens.
1. What is COI and Why Track It Over 5 Days?
Change in Open Interest (COI) tells us how many fresh contracts are being added at each strike price. Monitoring COI over a single day is helpful, but viewing it over a 5-day period:
- 🎯 Highlights consistent buildup of positions
- 💪 Helps separate noise from strong conviction areas
- 📊 Shows zones where writers are defending their positions
This gives traders a reliable map of where the market might pause, reverse, or break out.
2. How to Read the 5-Day COI Table
- Calls (CE) with highest COI: Usually where call writers expect the price to stay below. This is your Resistance Zone.
- Puts (PE) with highest COI: Indicates put writers want the price to stay above. This is your Support Zone.
📌 Rule of Thumb:
Highest Call COI Strike = Resistance
Highest Put COI Strike = Support
3. How to Use This in Your Pre-Market Planning
- Collect the 5-day COI data from your option chain provider or Excel setup.
- Identify which Call and Put strikes show the largest cumulative increase in OI.
- Mark those levels on your price chart as potential zones for reversal, breakout, or reaction.
- Use this structure to decide your directional bias before 9:15 AM.
Example:
Suppose over the last 5 days:
- 🚩 23,000 CE has the highest Call COI buildup → Resistance Zone
- 🟩 22,800 PE has the highest Put COI buildup → Support Zone
If the market opens near 22,850, the bias is bullish as long as price holds above 22,800. A breakout above 23,000 with volume may trigger aggressive call covering.
4. Pro Tips to Strengthen COI-Based Analysis
- 📆 Track COI with respect to expiry day. COI shifts aggressively during the last 2 days of expiry.
- 🕒 Recheck COI after the first hour (around 10:30 AM) to see fresh intraday build-up.
- 📉 Combine with VIX – High COI + High VIX = sharp breakouts possible.
- 📈 If price respects a high COI zone for 2+ hours, it's a strong barrier.
5. Strategy Alignment Based on COI Zones
| Price Action | What to Look For | Possible Action |
|---|---|---|
| Price near Call COI Resistance | Stalls or reverses | Sell CE or buy PE (if rejection with volume) |
| Price breaks above Call COI Resistance | Short covering likely | Buy CE or scalp breakout |
| Price near Put COI Support | Holds firm or bounces | Buy CE or sell PE |
| Price breaks below Put COI Support | Long unwinding risk | Buy PE or short future |
6. Final Thoughts
The 5-day COI zones act like invisible walls where big money takes positions. If you follow only price and volume, you might miss these key zones. But with COI data, you get to see where the market’s backbone is being built. Use it as a daily bias filter before placing your first trade.
Always remember: “Volume shows activity. COI shows commitment.”
How to Use:
- Mark the highest Call COI = Resistance Zone
- Mark the highest Put COI = Support Zone
5. Intraday 3-Min OI Change
.jpg)
Track the 3-minute Change in Open Interest (COI) throughout the session. Sudden spikes in COI can show where big players are entering.
⏱️ 3-Minute OI Change – Spotting Real-Time Smart Money Moves
In the fast-paced world of intraday trading, tracking Open Interest (OI) on a 3-minute basis gives you a powerful edge. It helps identify where large participants—option writers and buyers—are positioning themselves live during the trading session. This micro-level insight can often predict major intraday moves *before* the price reacts.
1. What is 3-Minute COI?
Change in Open Interest (COI) on a 3-minute interval means you’re tracking how many fresh option contracts are being added or exited every 3 minutes. Unlike end-of-day data, this live feed shows you:
- 📈 Where institutions are building positions
- 📉 Where positions are being exited aggressively (short covering or long unwinding)
- 🚨 Where sudden spikes in activity could signal a breakout or reversal
This method is especially useful when combined with price and volume action.
2. How to Use 3-Minute COI in Real-Time
| Observation | Interpretation | Bias |
|---|---|---|
| CE COI ↑ + Price ↓ | Fresh Call writing | Bearish (CE writers expect resistance) |
| CE COI ↓ + Price ↑ | Call writers exiting (short covering) | Bullish (CE sellers are being trapped) |
| PE COI ↑ + Price ↑ | Fresh Put writing | Bullish (PE writers expect support) |
| PE COI ↓ + Price ↓ | Put writers exiting (unwinding) | Bearish (support is being broken) |
3. Confirm Bias Using Both CE and PE Sides
Always analyze CE and PE together. Here's how to read them in combination:
- ✅ CE COI falling + PE COI rising + Price Up → Strong Bullish Bias
- 🔻 CE COI rising + PE COI falling + Price Down → Strong Bearish Bias
- ❌ Mixed signals → Stay out or wait for confirmation
4. Live Trade Setup Example
Time: 10:45 AM
Price: Nifty at 22,850
Observation:
- 📈 22,900 CE COI rises by 60k in 3 mins
- 📉 Price drops from 22,860 to 22,845
Interpretation: Aggressive call writing – Resistance building
- 📌 Bias: Bearish
- 📉 Possible Trade: Buy PE with SL above recent high
5. Best Practices When Using 3-Minute COI
- ⏰ Use a 3–5 min chart with CE/PE COI overlay or Excel-based COI tracker
- 🔍 Focus on strikes near the spot price (ATM and ±1–2 OTM strikes)
- 📊 Combine with price action (like rejection candles or volume spikes)
- ⚠️ Don’t trade COI alone—always confirm with price reaction
6. When 3-Min COI Signals Are Most Powerful
- 🕘 9:30–10:30 AM: Early market structure being formed
- 🕑 12:00–1:00 PM: False breakouts and range traps
- 🕒 2:30–3:15 PM: Smart money positioning for closing move
In these windows, COI can often reveal large institutional footprints before price confirms.
7. Conclusion
The 3-minute COI analysis turns your option chain into a radar for real-time trader sentiment. It helps you “see behind the curtain” to detect where big money is defending or exiting positions. Used wisely with price action and volume, it becomes a powerful tool in any intraday trader’s strategy.
Golden Rule: “Price tells you what. COI tells you why.”
How to Use:- Rising CE COI + Price Falling = Call writers active → bearish
- Falling CE COI + Price Rising = Call writers exiting → bullish (short covering)
6. Market Profile Levels (VAH / VAL / POC)
.jpg)
Use Market Profile to mark:
- VAH (Value Area High)
- VAL (Value Area Low)
- POC (Point of Control) – the most traded price of the day
📘 Market Profile Basics – Mastering VAH, VAL, and POC for Intraday Precision
Market Profile is a powerful tool that visualizes where the most time and volume are spent during a trading session. By plotting the distribution of price activity, traders can identify critical levels where value is perceived—and use these levels (VAH, VAL, and POC) for smarter intraday decisions.
1. Key Market Profile Levels You Should Know
- POC (Point of Control): The price level where the most volume or time was traded. It acts as a magnet for price and a key equilibrium level.
- VAH (Value Area High): The upper boundary of the value area (typically top 70% of volume).
- VAL (Value Area Low): The lower boundary of the value area. Together, VAH and VAL define where “fair value” was accepted.
These levels act as dynamic support and resistance zones that reflect institutional activity—not just price extremes.
2. How to Use VAH, VAL, and POC in Intraday Trading
🟢 Scenario 1: Price Opens Above VAH
- 📈 Bias: Bullish
- 🛒 Strategy: Wait for price to dip toward VAH or POC and buy if it holds
- 📌 Reason: Price is showing acceptance above the value area—new buyers are in control
🔻 Scenario 2: Price Breaks Below VAL
- 📉 Bias: Bearish
- 🔃 Strategy: Sell on any rise back toward VAL or POC, as sellers defend lower prices
- 📌 Reason: Value is shifting lower—weakness in structure
🔁 Scenario 3: Price Stays Inside VAH–VAL
- 📊 Bias: Neutral / Rangebound
- 💡 Strategy: Use scalping setups (VWAP bounces, RSI re-entries, or Bollinger Band fades)
- 📌 Reason: Market is accepting previous value—expect sideways action
3. Example Intraday Trade Plan Using Market Profile
Yesterday's Market Profile:
POC = 22,750 | VAH = 22,820 | VAL = 22,680
Today: Price opens at 22,850 (above VAH)
- ✅ Bias: Bullish
- 🎯 Entry: Buy near 22,820–22,830 zone if it holds during dip
- 📉 Stop Loss: Below VAH (around 22,800)
- 📈 Target: New high or trailing via 13-EMA
As long as price holds above VAH, bulls are likely to push higher. If price returns inside VAH–VAL, the bullish case weakens.
4. Advanced Tips for Market Profile Use
- 🧠 Combine POC with VWAP for stronger confirmation of trend zones
- 🧲 Price often returns to POC intraday — use it as a magnet in range markets
- 🔍 If today’s POC is shifting upward or downward compared to yesterday — trend bias is stronger
- 🧮 Use with 5-min or 15-min chart + volume profile for optimal setups
5. Visual Quick Reference: Market Profile Action Guide
| Price Behavior | Market Bias | Suggested Action |
|---|---|---|
| Opens above VAH & holds | Strong Bullish | Buy on dip toward VAH/POC |
| Breaks below VAL & holds | Strong Bearish | Sell on rise toward VAL/POC |
| Stays inside VAH–VAL | Rangebound | Scalp with small targets |
| Returns to POC multiple times | Low conviction / balance day | Use fade setups with tight SL |
6. Conclusion
Market Profile levels help traders see beyond basic support/resistance and understand where the market sees value. VAH, VAL, and POC serve as reliable signposts for entries, exits, and trend confirmation throughout the day. Use them as part of your pre-market planning and intraday execution to trade where institutions are active—not where noise dominates.
Golden Rule: “Buy above value, sell below value, scalp inside value.”
How to Use:- If price opens above VAH and sustains, it’s bullish → Buy on dips
- If price breaks VAL and holds, it's bearish → Sell on rise
- Price inside VAH-VAL = range market → Use scalping strategies
7. Chart Settings & Indicators
.jpg)
Set your chart layout with these indicators:
- 21 EMA: For short-term trend direction
- RSI: For overbought/oversold signals and divergence
- ADX: To measure trend strength (above 25 = trending)
- VWAP: To identify the institutional average price and intraday mean
📊 Chart Settings & Indicators – Build a Clean, High-Confidence Intraday Setup
A well-structured chart setup can be the difference between noise and clarity in intraday trading. Using a few focused indicators—not cluttered charts—helps you follow the price action, confirm entries, and avoid false trades. Below is the ultimate chart layout with 4 essential indicators that professional intraday traders use every day.
1. 🟡 21 EMA – The Short-Term Trend Line
- Purpose: Identifies short-term directional bias
- When to Use: Trend-following trades, pullbacks, or momentum moves
- How to Read:
- Price above 21 EMA = short-term uptrend
- Price below 21 EMA = short-term downtrend
- Price bouncing off 21 EMA = continuation setup
- Best Timeframe: 5-min or 15-min for intraday
2. 🟣 RSI (Relative Strength Index)
- Purpose: Identifies overbought/oversold zones and divergence
- Settings: RSI (14)
- How to Use:
- RSI above 70 = Overbought (possible reversal or profit-taking)
- RSI below 30 = Oversold (possible bounce or recovery)
- Divergence: Price makes new high, RSI doesn’t = Weakening trend
- Pro Tip: Use RSI divergence at support/resistance zones for early reversal signs
3. 🔴 ADX (Average Directional Index)
- Purpose: Measures trend strength (not direction)
- Settings: ADX (14)
- How to Read:
- ADX above 25 = Strong trend (good for trend trades)
- ADX below 20 = Weak or sideways market (avoid breakouts)
- Combo Tip: Combine with RSI or 21 EMA to confirm breakouts
4. 🔵 VWAP (Volume Weighted Average Price)
- Purpose: Shows the average price at which institutions are transacting
- Ideal For: Intraday mean-reversion or trend-following strategies
- How to Use:
- Price above VWAP = Bullish bias
- Price below VWAP = Bearish bias
- VWAP touch + RSI confirmation = Scalp or fade entry
- Best Timeframe: 1-min to 5-min charts
5. Recommended Chart Layout
- 🕓 Timeframe: 5-min or 15-min for Nifty, Bank Nifty, and stocks
- 📉 Indicators:
- 21 EMA (yellow)
- VWAP (blue, intraday only)
- RSI (14) below chart
- ADX (14) below chart with +DI / -DI (optional)
🧭 Setup Outcome:
Clean charts + 4 smart indicators = Better confirmation, less confusion, and higher trade accuracy.
6. Example Trade Confirmation Using These Indicators
Scenario: Nifty is in a minor uptrend on the 5-min chart.
Conditions:
- Price pulls back to 21 EMA + VWAP
- RSI touches 40 and reverses upward
- ADX is at 28 → trend is strong
Action: Enter long on confirmation candle close.
SL: Just below VWAP.
Target: Previous swing high or risk-reward ratio of 1:2.
7. Final Thoughts
A solid chart setup is about balance—just enough indicators to confirm the price action, but not so many that you get analysis paralysis. The 21 EMA, RSI, ADX, and VWAP form a reliable combo for trend detection, entry timing, and volatility filtering in intraday trades.
Golden Rule: “Let price lead. Use indicators to confirm, not decide.”
✅ Summary
This checklist is your first filter before trading. It combines:
- Price Action (OHLC)
- Volatility (IV & IVP)
- Market Sentiment (Option OI)
- Volume Theory (Market Profile)
- Trend Confirmation (Indicators)
🚦 How to Trade Using the Checklist
Below is a step-by-step approach to build a high-probability trade using your checklist. Follow these in sequence before market open and during the live session.
🕖 1. Before Market Open (Pre-Market Setup)
- Mark OHLC of the Previous Day
→ Use these levels to frame today’s support and resistance.
Plan: Watch how price reacts at these zones. - Check India VIX (Volatility)
→ High VIX = expect wild swings. Low VIX = rangebound.
Plan: Adjust SL and target size based on expected volatility. - Analyze IV Percentile (IVP)
→ If IVP < 30%, options are cheap → Prefer buying options.
→ If IVP > 70%, options are expensive → Avoid buying, consider spreads or selling (if experienced).
Plan: Match your strategy to current IVP level. - Study 5-Day COI Data
→ Mark the strike with the highest Call COI = Resistance
→ Mark the strike with the highest Put COI = Support
Plan: Price moving above Resistance (with CE COI decreasing) is bullish. Below Support is bearish.
🕘 2. After Market Opens (Live Trading Checklist)
- Track 3-Minute COI Changes (Live)
→ Rising CE COI + price falling = bearish
→ Falling CE COI + price rising = short covering → bullish
Plan: Enter Buy CE when price crosses resistance and CE COI drops + PE COI rises. - Mark POC, VAH, VAL from Volume Profile
→ Price above VAH = bullish bias
→ Price below VAL = bearish bias
→ Price inside VAH-VAL = sideways
Plan: Enter trade only if price breaks and sustains outside value area with strong volume. - Use Chart Indicators
→ 21 EMA: Price above = uptrend, below = downtrend
→ RSI: Look for divergence before reversal
→ ADX > 25: Confirm strength of breakout
→ VWAP: Acts as magnet; buy above, sell below
Plan: Combine trend + OI + volume levels for confluence entry.
📈 Example: How to Take a CE Trade
✔ Previous High: 19,500 ✔ India VIX: 12 (low volatility) ✔ IVP: 22% → good for buying options ✔ Highest CE OI: 19,500 CE (+8 lakh) = Resistance ✔ Highest PE OI: 19,400 PE (+6 lakh) = Support ▶️ Live price breaks 19,500 with volume ▶️ CE OI at 19,500 starts falling ▶️ PE OI at 19,500 starts increasing ▶️ 15-min candle closes above POC ▶️ RSI = 55, ADX = 28, Price above 21 EMA → Buy 19,500 CE → SL below POC or VWAP → Target = next resistance / low volume node
⚠️ Avoid Trades When:
- VIX is spiking suddenly (news, event-driven)
- Price stuck inside VAH–VAL with no volume
- No confirmation from OI data or indicators
✅ Final Tip
Don’t rush the entry. Let your checklist give you confirmation from at least 3-4 points (like price action, OI shift, VWAP, RSI). The more confirmations you have, the stronger the trade setup.
✅ Intraday Trading Checklist – Quick Trade Guide (Table Format)
This table helps traders quickly identify how to act based on each checklist item. Use it before and during the market to guide your intraday trades effectively.
| # | Checklist Point | How to Analyze | Trade Action |
|---|---|---|---|
| 1 | Previous Day OHLC | Mark previous day’s Open, High, Low, and Close on chart. | Use as key Support/Resistance zones. Breakout/Breakdown gives direction. |
| 2 | India VIX | Check volatility trend – rising or falling. |
|
| 3 | IV Percentile (IVP) |
|
|
| 4 | 5-Day COI Change | Find strikes with highest COI on CE/PE side. |
|
| 5 | 3-Min Live COI Change | Monitor CE/PE COI changes live in 3-min interval. |
|
| 6 | Market Profile (POC, VAH, VAL) | Check if price is above/below POC or inside value area. |
|
| 7 | Chart Setup (Indicators) |
|
|
✅ Pro Tip: Wait for 3 or more confirmations from the table above before entering a trade. The more confluence, the higher the success rate.
🛡️ Risk Management – Protecting Your Capital
Even with the best analysis, no setup is 100% guaranteed. That’s why smart intraday traders always follow strict risk management rules. Here’s how to do it:
| Risk Rule | How to Apply | Why It Matters |
|---|---|---|
| 1% Rule | Risk only 1% of your total capital per trade. | Protects your account from large losses. Even after 5 losses, you're still in the game. |
| Pre-defined Stop Loss | Set your stop before entering the trade (based on POC, VWAP, swing level, etc.) | Prevents emotional decisions and protects capital. |
| Fixed Risk-Reward Ratio | Use at least 1:2 RR (risk ₹500 to gain ₹1,000) | You can win only 4 out of 10 trades and still be profitable. |
| Maximum 3 Trades a Day | Set a daily trade limit to avoid overtrading. | Keeps your mind focused and reduces revenge trading. |
| Daily Loss Limit | Stop trading if total loss hits 2–3% of capital in a day. | Protects mental capital and avoids digging deeper into losses. |
Pro Tip: Use smaller quantity at first. Only increase lot size when you are consistently profitable for at least 1 month.
Disclaimer: This content is for educational and informational purposes only. It does not constitute financial, investment, or trading advice. Trading in the stock market and derivatives involves substantial risk and may not be suitable for all investors. Always consult with a SEBI-registered financial advisor before making any investment decisions. The author or publisher is not responsible for any profit or loss resulting from trading activities based on this content.
Remember: In intraday trading, survival is more important than speed. Your first job is to protect your capital – profits will follow.
#IntradayTrading #StockMarketIndia #Nifty50 #OptionsTrading #MarketProfile #OpenInterest #TradingChecklist #IndiaVIX #TechnicalAnalysis #RSI #VWAP #ADX #21EMA #FNOTrading #IntradayStrategy