7 Essentials for Intraday Traders: Mastering the Art of Market Reading

business man confident with market reading tips

Snippet Highlights

  • Identify Trends
  • Use multiple time frames
  • Use Technical Indicators (RSI, MACD, Bolinger Band)
  • Consider RSI When Below 30 (Oversold) & Above 70 (Overbought)
  • Consider Market Sentiments

In the ever-changing world of intraday trading, mastering the market reading is vital for profitable trades. There are multiple factors influencing the market, but at the very heart of it are the trading strategies. We will delve into understanding market trends and try exploring workable strategies to master intraday trading.

So, let’s do it together.

Understand the Trends  

When it comes to intraday trading, one factor stands out, and that is TREND. The direction of the trends plays a vital role in guiding traders to capitalize on short-term or long-term price movements, whether it be a bullish or bearish trend. Without a grasp on prevailing trends, traders would make decisions that may cause huge losses.

trends and market reading candles

We suggest a 5-minute(5m) or 15-minute (15m) chart to identify trends, it is paramount for short-term price movements. Following upward or downward bars will never help to make informed trading decisions. Additional considerations are also necessary to determine the validity of the trend and to see its strength.

How To Better Make Entry Decisions

To enhance trading decisions and to increase the accuracy of intraday trades, follow proven techniques.

Stay Aware of News & The Economic Environment

Your underlying asset is important, so stay informed about economic data, and news releases. Sometimes, there are sudden reversals in the market, so avoid the immediate entries when there is some significant news around, by doing so, you may mitigate the risks involved.

Watch For Time Windows For Market Reading

Session openings and closings are vital enough to influence market sentiment. For instance, the London Fix at a sharp 4 p.m. for GBP currencies can trigger volatility and affect the trends in the market.


Stay cautious when there are convergences between the indicators like RSI or Stochastic and trend. Converging signals may indicate a major trend reversal or weakening momentum.

Pro Tip: Consider RSI When Below 30 (Oversold, as a buy signal) & Above 70 (Overbought, as a sell signal).

rsi indicator for market reading

Ichimoku Signals 

Forget not to add classical Ichimoku signals and other necessary indicators to confirm necessary entry points. Go with the signals that best align with your overall trading strategy.

Resistance and Support Zones 

To boost your market reading strategies, you must follow the proven techniques.

Keeping the higher time frames on, jot down the support and resistance levels, especially when they coincide with the direction of your intraday trend. Why these are important? 

These zones act as potential reversal points, and they signal the barriers to further price movement.

resistance and support for market reading

Reversal Candles and Their Role in Market Reading 

Closely watch significant reversal candles that suggest a shift in the market sentiment or trend exhaustion. This helps a lot in market reading.

Below Are A Few Reversal Candles

Hmmer: A single candlestick pattern having a small body with a long lower shadow, it indicates a potential bullish reversal after a downtrend.

Shooting Star: It is a single candlestick pattern having a small body with a long upper shadow, signaling potential bearish reversal after an uprend.

Doji: It’s a candlestick pattern having a small body, Doji indicated market indecision and potential trend reversal.

Engulfing Pattern: These are two-candle reversal pattern, here the second candle’s body fully engulfs the previous candle’s body, it signals a shift in the market sentiment.

Dark Cloud Cover: It’s a two-candle bearish reversal pattern where a down candle is there and it follow an up candle, suggesting potential downside momentum.

Piercing Pattern: This is a two-candle bullish reversal pattern where an up candle follows a down candle, this indicates potential upward movement.

How to read the market and master it is a continuous learning process that needs patience, adaptability, and discipline. By following these tips and strategies, you enhance your skill to identify trends accurately and make well-informed decisions. Staying vigilant and informed adds up to healthy trading, and prioritizing risk management can save you from losses. 

In summary, the fundamental price metrics, highs, lows, opens, and closes, help master the art of interpreting stocks. Analytical capabilities are polished When a trader comprehends important indicators like dividend yield and price to earnings (PE). A systematic approach towards enhancing these strategies will make you a pro and strengthen your analytical skills to make informed decisions. 

I hope this discussion helps a lot to our readers. We will always keep you updated. If you know how to read market and got some tips, do share them with us.

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