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Price Action Guide – Part 9: Fifteen Minute Candle Day-BTST Trading Strategy

price action strategy on 15 minute candles
Price Action Guide – Part 9: Fifteen Minute Candle Day-BTST Trading Strategy
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This strategy actually goes against what the herd is doing.

Any amateur trader knows that a bunch of inexperienced traders jump into stocks at the opening based on news, open =high (or low), TV expert comments, etc.

Amateur traders also know, or should know that the biggies and the professional traders enter the market after 1.30 PM and then dictate the trend from thereon.

This trading will help you hunt the hares (the herd) with the hounds (the biggies).

15 Minute Price Action Trading Strategy

What you need:

15 Minute charts

VWAP

This strategy should only be used on FNO stocks and indices.

How To Play This Strategy at 9.30 AM

As stated earlier, the assumption is that many amateur and new traders enter right at the opening and either buy or sell the stock for whatever reason.

As time goes by, they square  up their positions and some make profits and some lose out.

By the time they get out, a trend gets established.

This is how you play this strategy in the opening:

1. Mark the high and low on the first 15 minute candle body (you can include or exclude the wicks – try both and check anyway). The top line is resistance and the bottom line is the support.

2. Start watching the stock from 9.30 AM on.

3. If the price crosses above the resistance line and the VWAP, it becomes a buy.

If the price crosses below the support line and the VWAP, it becomes a sell.

Let’s take an example:

how to trade 15 minute candles

The highs and lows are marked on the first 15 minute candle. The second candle suggested a sell, which was quickly negated, and may have resulted in a 30 paise loss if it was taken. At 12 PM, things settled down and the noise created by the herd smoothed out. The price crossed above the resistance line and the VWAP at 68, suggesting a buy. And, as you can see it resulted in gains of 4%.

How To Play This Strategy between 3.00 PM and 3.30 PM

The market typically buzzes around with pros between 2 PM till close.

Between 3 PM and 3.30 PM, the amateurs and the revenge traders likely square up their trades.

At this time you should decide whether your position is good enough for BTST, or whether you should square it up intra-day.

This is how you play this strategy between 3 Pm and 3.30 PM (assuming you have not booked profits earlier):

1. Mark the high and low from between 1 Pm and 3 PM if you have decided to go BTST.

2. If the price remains above the VWAP and close to the resistance line, you can carry it forward.

If the price starts dropping towards the VWAP or crosses below the support line, book profits.

(Play the reverse in case you have shorted.)

Let’s take an example:

price action strategy on 15 minute candles

NBCC’s price between 1 PM and 3.15 PM hovered near its highs and above the VWAP. Therefore it could be carried forward. However, know that 4% profits are super and had I traded in NBCC on Friday, I would have booked profits and moved on to another stock. But to each his own.

That’s it. Try it on different charts and check if it works well for you. Let me know on Twitter or here in the comments on how it worked out for you.

52 Comments on "Price Action Guide – Part 9: Fifteen Minute Candle Day-BTST Trading Strategy"

  1. Very nice.

  2. I have tried this but aroun the 4th candle my S.L was triggerd not one time three time

  3. Sir, doubt on 9:30 AM strategy – if we have bought at 68, our stop loss should be low of first 15 min candle body? Or, we should wait and exit if a 15 min candle closes below VWAP?

  4. Dhvanil Choksi | September 9, 2018 at 7:26 am | Reply

    Sir, I guess you’ve marked open and close of 15 min candle in above charts. Please correct me if i am wrong.

  5. Sir, Do you use chartInk to get alerts? Can you please suggest which site/application you use for scanner and alert for intraday trading.
    Thanks.

  6. Which candle stick to use? Normal or heiken aishi? Because

    • Normal. The Heiken Ashi is like a glorified average of the current and past candles OHLC and it can give a false signal, esp in shares that are turning around.

  7. Jitendra behera | September 9, 2018 at 6:48 pm | Reply

    Hello sir,

    Good articles really. One question, may sound silly, do we need to use fibonacci pivot points (continuous or normal) for resistance and support levels?

  8. gopal shrivastava | September 10, 2018 at 2:08 pm | Reply

    Beautiful….thank you sir

  9. Sir ….i am a starter in trading …..
    Guide me frm where i should start learning….

  10. i have found very simple trading tools with thisartcle

  11. Sir, isn’t the big green candle at 11:15 a buy entry, that also VWAP and broke the resistance? Why did u chose to enter at 12:00?

  12. This is doing good Sir…..
    Thank You

  13. ld singh .it was successfull on friday day trading

  14. Hi!
    How do we mention the current price in Streak algo? I was trying to emulate “3. If the price crosses above the resistance line and the VWAP, it becomes a buy.” from your steps in Streak, but, could not find any suitable usage/indicator for mention current price.

    ~Newbie

    • I urge you not to play with static technical formulas in Streak. You’ll end up paying brokerage for trades triggered the time your price is above VWAP after meeting your 1st exit conditions.

  15. Thanks for replying! Since you had mentioned Streak, I too was trying to backtest. It will be great if you could give a snapshot of what you had entered in Streak. I just want Streak to give alerts, because I cannot monitor prices all the time.
    ~Newbie

  16. sir
    today 03.10.2018 i sold 2 lots in M&MFIN @ 404.15 between 11.00-11.15 AM candle when previous candle closed below VWAP and Lower than 9.15-9.30 Candle Lower level.
    i placed an order to buy at 398.15 with the stop loss at 407.55
    but unfortunately it bounced back and hit my SL at VWAP line at 407.55 immediately in the next candle 11.30 AM :((

    kindly advise, do we need to filter more or it was just a matter of chance :((

    i am writing this message at 2.30 PM after waiting for movement since 11.30 am till 2.30 pm

  17. Rajendran Sadanandan Sadanandan | October 3, 2018 at 5:05 pm | Reply

    can I apply this strtegy for cash trading ?

  18. how can i got your prev (1-9) old posted article on Price action.

  19. Thank you Sir. Worked well on Escorts today 05.10.2018 at 1.45 PM. 🙂

  20. Thanks for sharing strategy. Since I trade in Banknifty,the first 15 minute candle is very long and sometimes really long with long wick and sometimes with long body too. how can i trade in such setup

  21. how to find stocks for this strategy?

  22. Sir thanks for sharing this strategy. I wanted to know about the BTST accept of the trade where in we assume that resistance being the low of the 3 pm and support being the high of the 1 pm candle. Is this understanding correct here ?

    • For BTST, you need volume analysis. Ill blog that tomorrow

      • Rajesh Sankaranarayanan | October 17, 2018 at 6:38 pm | Reply

        Sir Did you write anything on volume analysis. If yes, could you please provide me with the key word from that blog I will search the link. Thanks

  23. how to find stocks for this strategy?
    .where can we get the trade set up

  24. Rajesh Sankaranarayanan | October 17, 2018 at 7:52 pm | Reply

    Based on the 1:00 pm to 3:00 pm S/R Line I am trying to do a Chartink screener.
    This should provide me with a list of stocks which fall in the BTST category.
    Below is the screener which I should run at 3.01 pm.

    Latest Close Greater than[-8] 15 minute Open
    Latest Close Greater than[-8] 15 minute Close
    Latest Close Greater than[-1] 15 minute Open
    Latest Close Greater than[-1] 15 minute Close
    Latest Close Greater than Latest VWAP

    This should give me bullish list of stocks. Is this correct?
    Is there anything else I need to consider?

  25. Sir RBL Bank Ltd. it has fallen on 19.10.18. From the OPTION CHAIN, if you were me which CE or PE or Both will you buy on 22.10.18. so that I can clearly understand the theory with this as an example. If you do not mind sir.

    • Markets are too fluid to predict beyond 24 hours. I would watch the price action in the morning and decide which CE or PE to buy. The CE or PE must be within the daily volatility range, once the price action strategy confirms a trend.

  26. is it possible that on any day this set up doesnt actuate?..i tried paper testing on BNF on 06.11.2018..couldnt find any trade..

    • There was a clear sell at 1.30PM. You have not understood the article. I suggest you sharpen your understanding of price action before applying strategies.

  27. no call generating on BNF on 05.11.2018 too

    • The VWAP did at 3 Pm and the price action confirmed at 3.15 PM. You should re-read the article and understand it before applying

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