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Intraday trading is based on the price fluctuations due to that particular day’s global market trend, FII activity, market sentiment etc…
Whereas positional trading requires analysis of previous price movements of a stock ranging from a few days to weeks or even months. Hence, it is not recommended to apply positional analysis methods in intraday trading.
Positional analysis is used to predict the price movements based on historical data and charts and come to a buy/ sell decision and for the target to be achieved it takes a specific period of time. But in intraday, a lot of activities comes into play during the trading like FII and DII activity, sectoral movement, global market, political activity and so on.
Positional analytical methods cannot be followed because of the following factors, Global Markets, FIA, political activity, market sentiment.
and Time factor, where the Buy & Sell has to be done the between 10.00am to 3.15pm as the Stock price are fluctuating and every moment.
positional analysis based on past performance which cannot be used in intra day as it is affected by today market sentiment and present day factors
Intraday prices are based on market sentiments so you should use charts and indicators which help you make a decision based on that.
Whereas positional analysis is based on the previous day’s, week’s, months’s or even year’s price and volume data.
As both have different criteria we cannot use the same methods to trade.
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