The Best Apple Stock Simple Day Trading Strategies
Apple Inc, which is listed on the NASDAQ Stock Exchange, is one of the most popular stocks preferred by both intraday traders and long-term investors. Investors flock to APPL shares for a number of reasons ranging from their high liquidity to their market capitalization and solid fundamentals.
Apple Inc. he set a new class record, as he created history with a market capitalization of one trillion US dollars. The only other company that reached a billion market capitalization was PetroChina, which briefly reached the milestone in 2007.
No wonder then that the stock is loved by speculators and short-term traders. There are many reasons, which also include liquidity and volatility of stocks.
A stock with good intraday liquidity has many advantages. On the one hand, the spread, which is the difference between the offer and the sale price is tight, so it is cheaper to speculate or trade on a daily basis. The daily high average volume also means that the fillings are tight.
Very often, one can see that the price you bid for is not always the price you get. However, in the case of Apple shares, you can easily see that the price quotes are much stricter.
With a lot of news keeping the markets busy, trading Apple shares can certainly be a safe bet for intraday traders.
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In this article, we’ll walk you through three simple trading strategies you can employ for Apple stock trading day. The indicators used in the different strategies are also commonly available. This means that you can easily use Apple’s day trading strategies on almost any trading platform.
Negotiate 2 days maximum / minimum
The two-day high low strategy is ideal for short-term speculative trading or day traders. In this trading strategy, the basic premise is to buy the breakdown of the two-day maximum or sell the breakdown of a two-day minimum.
Traders can make quick profits using this strategy, but it requires preparation before the market opens. It is also ideal to use this strategy during days when there are no major news events. This includes any event such as the release of profits or important events in the sector.
The two-day high-low trading strategy for Apple shares is purely a technical game in action. Sometimes, fundamentals could potentially help increase profits as well.
The first step in the two-day maximum low trading method, as the name suggests, is to identify a two-day maximum and a two-day minimum. The easiest way to start is to look for the maximum and minimum of the previous two days, before the opening bell.
It also helps to track open pre-marketing. As long as the stock is not making big moves, it would be safe for trading. After plotting the high and low, switch to a 5-minute chart. Now simply wait for the first 5-minute session to post a close of the two-day maximum or the two-day minimum.
Start a long or short position accordingly at the beginning of the next 5 minute session. To protect your trade, Place the stops at the minimum of the previous 5-minute session. Aim for a partial close based on the risk assumed and move the remaining position to reach breakeven.
For the rest of the trade, look for a 1: 2 risk / reward ratio or look for closing the trade at the nearest round number.
Two days maximum minimum-Business example
The chart below illustrates the two-day low maximum trading strategy. The area of the rectangle marks the high and low levels of two days. Following the high and low that forms, you simply wait for the first 5-minute bullish session to close outside the two-day high or low.
Once you find the settings, either long or short trade with the stops placed at the above minimums.Two-day low maximum trading strategy
While the strategy seems quite simple on paper, in practice the trader is required to continue to view the charts. Sometimes, you can expect price action to continue to vary with the breakout occurring later in the day. On other days, you can expect to see a major move occurring within the first hour of the trading itself.
It is therefore essential to prepare before the opening bell and also to make sure that there are no major events moving from the market.
Trading ranges during low volatility
Trading ranges during periods of low volatility can guarantee steady gains even though stocks are not heading anywhere. However, the disadvantage of this method is that there is a risk of getting caught in false movements. This strategy requires a little practice and skill.
Trading during low volatility means that price action is essentially moving sideways. While long-or even medium-term traders tend to avoid this, reducing to smaller time frame charts can help.
In this trading strategy, you can make use of any oscillator that can help you identify overbought and oversold levels. The settings for the oscillator must also be set in a short-term setting to be very sensitive to price action.
While there are many different oscillators that can be used, the most common ones include the Relative Strength Index (RSI), stochastic, or exchange rate oscillator. Of course, you are free to experiment with other oscillators as well as their settings.
Once you configure the oscillator, the next step is to change the settings so that it is sensitive to price movements. You can adjust the overbought and oversold levels of the oscillator to capture the extremes in price action.
When trading ranges during low volatility, the trader or speculator of the day is simply capturing short-term fluctuations in prices. The risk reward ratio in trading this strategy requires some flexibility and there are cases where you may also face more Lost Trades.
Day traders should practice this trading strategy on a trading simulator or demo trading account before using it in the real markets. Market conditions also play a crucial role. Therefore, this strategy is not advisable during periods of high volatility.
Trading ranges with low volatility-example trading
In the following example, we use the five-minute graph. For the oscillator, we use the standard relative force index. RSI settings are not set in stone. In this example we make use of the RSI with a configuration of 7 periods. While there is no “ideal fit” you can experience. Find a balance between making the RSI not too sensitive and not too lagging.
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For overbought and oversold levels, we use levels 85 and 15. Whenever the RSI reaches a high of 85 or higher, we fall short when the indicator indicates oversold levels. Similarly, when the RSI falls at or below 15, we go a long time when the indicator indicates overbought levels.
You can also plot recent fundamental highs and lows on the chart.
In the following example, you can see how the price registers a fundamental High. At the same time, the RSI 7 Peaks about 85. You can shorten this position at the next open session, pointing to the fundamental or recent minimum.
Trading ranges during volatility trading strategy
Trading ranges during volatility trading strategy
Alternatively, look for the RSI 7 to go down or at 15 and then spend a lot of time on the next open session. You can then aim for the recent maximum to book gains.
You can place the stops at the recent high or the minimum after you start trading.
Space filling strategy
The gap-filling strategy, as the name implies, involves trading the gaps. The gap filling strategy is a very simple approach to trading. In this strategy, day traders look for the price to the previous day’s gap.
A gap is formed in the price of a share when there is a significant difference between the close of the previous day and the opening of the current day. Gaps are formed due to pre-marketing activity and large orders that raise or lower the price creating gaps.
There is a common saying that gaps are meant to be filled. While this may be true, a void is not always filled immediately. Gaps can also serve as support and resistance levels depending on market conditions.
The most common types of loopholes are common loopholes, which is what we are going to use in this day trading strategy for Apple. Other types of gaps include separation gap, continuation gaps, and Exhaustion Gaps.
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Gaps can also be used to understand trends in the price chart.
The common gap is known as such because such gaps tend to fill quickly; in some cases during the intraday session as well.
To trade successfully with gaps, traders must have their charts ready at least 30 minutes before the market opens. It would also help to know the pre-market trading price so you can anticipate whether a gap will form or not.
Gap filling strategy-trading example
The first step is to identify the gap from the previous days and mark the closing price with a horizontal line. The goal of the gap filling strategy is to go a long time when the price fills the gap as it decreases to the gap. For short positions, we look for the price to recover to the gap before it turns around.
Making use of a standard oscillator with intraday settings to adjust the sensitivity can help you choose better operations.
Space fill trading strategy example
Space fill trading strategy example
In the illustration of the graph above, you can see that we identified the gaps of the previous days. Mark the space with a horizontal line. We also use the RSI indicator with a period setting of 7 and 85 and 15 for overbought and oversold levels.
Now, you can see that when the price falls to the previous closing price, the RSI can determine the overbought level. In the first example, the RSI drops to 15 and then reverses. You can start a long position while pointing to the next space.
The price will eventually pick up to this level where you can book gains. Traders need to strategically place the stops because the price can tend to tighten the position before turning around. Therefore, look to the left side of the chart and choose a price level. Alternatively, since the next gap is already known, you can also set your stops based on the risk / reward ratio of 1: 2.
Once the price moves in your favor, cover the stops to reach breakeven so that trading is now risk-free.
For short positions, you can flip the strategy. Look for the price to climb into the gap and watch the RSI become oversold levels. At this point, you can start short positions based on the RSI.
Apple Day trading strategies-recommended strategy
Apple’s day trading strategies described above are easy to use. Because each trader’s personality is unique, it is in their own interest to experiment with strategies to find one that suits them best. Some traders prefer not to spend too much time on the charts, analyzing the indicators. Some traders are absolutely comfortable with observing charts.
Among these, one can choose the gap-filling strategy that is visually easy to identify, or the trading of the volatility breakout method.
One of the things that is common to Apple’s three daily trading strategies is that they are intraday settings. Thus, traders can set the charts and find a trade fairly quickly. The common advantage of all three-day trading strategies is that once you make a profit for the day, you can simply walk away.
About trade, as one might already know comes from greed. Therefore, it is essential for traders to maintain discipline and control when using these simple daily trading strategies.