Day Trading Strategy Cheat Sheet
How to use it: pick one strategy, ideally a Beginner one, and learn it until you can spot it without thinking. Every row answers the same four questions: where's the level, what's the trigger (the confirmation, always on a closed candle), where is it wrong (the stop), and where does it end (the target). Then size it so a losing streak can't end your account: how to size from your stop.
Trend (13)
Join a move that is already under way, entering on a pause rather than chasing.
| Strategy | Where's the level | Trigger (confirmation) | Stop | Target | It fails when |
|---|---|---|---|---|---|
| 9/21 EMA crossover | The 9 EMA and 21 EMA. | A candle closes with the 9 EMA above the 21 EMA after the previous closed candle had it below (and the reverse for shorts). | Below the lowest low of the last 5 closed candles. | 2R, or earlier when the opposite crossover closes. | Price chops sideways and the averages cross back and forth. Works poorly in ranges. |
| Bull and bear flags | The top of the flag: its highest high (the lowest low for bear flags), after a pole of at least 3 ATRs. | A candle closes outside the flag in the direction of the pole. | Just beyond the opposite side of the flag. | The height of the pole, projected from the breakout close. | The flag retraces more than half of the pole, or the breakout candle closes back inside the flag. |
| EMA ribbon pullback | The ribbon between the 9 and 21 EMAs, while the 9 is above the 21 and the 21 above the 50 (the reverse for shorts). | The previous candle dipped into the 21 EMA, and this candle closes above the previous high and above the 9 EMA. | Below the lowest low of the last 5 closed candles, or below the 50 EMA if that is lower. | 2 times the risk. | The EMAs flatten and twist together. A close through the 50 EMA means the trend is no longer clean. |
| Golden and death cross | The 50 and 200 exponential moving averages. | A candle closes with the 50 crossing the 200. | 2 times the average true range from entry. | 2R, or earlier when the opposite cross closes. | Choppy markets, where the averages cross several times in a short span. |
| MACD crossover | The MACD line (12, 26) and its 9-period signal line. | A candle closes with MACD crossing above the signal line while both are below zero (the reverse for shorts). | Beyond the extreme of the last 5 closed candles. | 2 times the risk. | Flat markets, where MACD hugs zero and crosses back and forth. |
| MACD zero line cross | The zero line of the MACD (12, 26, 9). | A candle closes with the MACD line crossing above zero while it is also above its signal line (below zero and below the signal for shorts). | Beyond the extreme of the last 6 closed candles. | 2 times the risk. | Choppy, sideways markets where MACD hovers around zero and crosses back and forth. |
| Parabolic SAR flip | The Parabolic SAR dots (0.02 step, 0.2 max). | The dots flip from above price to below it (or the reverse) on a closed candle. | The new SAR dot. | 2 times the risk. | Sideways markets, where the dots flip back and forth. |
| Pullback to the 20 EMA | The 20 EMA, in a trend where the 20 EMA is above the 50 EMA and both have risen over the last 10 candles (reverse everything for downtrends). | A candle's low touches the 20 EMA, then the next candle closes above that candle's high and above the 20 EMA. | Just below the lowest low of the last 5 closed candles. | 2 times the risk, or the most recent swing high, whichever comes first. | Price closes through the 50 EMA, the moving averages flatten and cross, or pullbacks get deeper each time. |
| Supertrend follow | The Supertrend line (ATR 10, multiplier 3). | A candle closes on the other side of the line, flipping it. | The Supertrend line's value on the flip candle, fixed there. | 2R, or earlier when the line flips back on a closed candle. | Frequent flips in a sideways market. |
| 200 EMA bounce | A rising 200 EMA, with the 50 EMA above it (falling 200 with the 50 below it for shorts). | A candle tags the 200 EMA, and the next candle closes green above that candle's high (red below its low for shorts). One setup per test: price must move away from the line before the next one counts. | Below the lowest low of the last 5 closed candles. | 2 times the risk. | Price closes well through the 200 EMA and stays there, or the 200 EMA has gone flat. |
| Donchian 20-bar breakout | The 20-candle high and low channel. | A candle closes above the prior 20-candle high (or below the 20-candle low). | 2 times ATR(14) from entry. | 2R, or earlier when a candle closes beyond the opposite 10-candle channel. | Breakouts that immediately reverse back into the channel, common in quiet markets. |
| Higher-low continuation | The most recent confirmed higher low. | A candle closes above the high of the candle that made the higher low. | Just below the higher low. | The previous swing high if it is at least 1R away, otherwise 2R. | A candle closes below the last higher low, which breaks the structure. |
| Ichimoku cloud breakout | The cloud (spans A and B) and the conversion and base lines (9, 26, 52). | A candle closes above the cloud while the conversion line is above the base line (the reverse for shorts). | The far side of the cloud or the base line, whichever is further. | 2 times the risk. | Thin clouds and flat lines, where price drifts through without commitment. |
Breakout (11)
Wait for price to leave a defined area, then follow it out.
| Strategy | Where's the level | Trigger (confirmation) | Stop | Target | It fails when |
|---|---|---|---|---|---|
| Break and retest | The high or low of the 30 candles before the last 3. | A candle closes beyond the level. Within 12 candles price comes back to it and a candle closes back in the breakout direction while holding it. | Beyond the lowest low (highest high for shorts) since the break. | 2R. | The retest candle closes back through the level by more than a few ticks. |
| Inside bar breakout | The high and low of the mother candle. | A later candle closes above the mother candle high or below its low. | The opposite side of the mother candle. | 2R. | Several breaks in both directions; the pattern is unreliable in chop. |
| Opening range breakout | The high and low of the first 15 minutes after 9:30 ET (5 and 30 minutes are common variations). | Between 9:45 and 11:30 ET, a candle closes above the range high (long) or below the range low (short). Two attempts per day at most. | The opposite side of the range, or the middle of the range if the range is wide. | 2R, and flat at 11:30 ET if neither the target nor the stop is hit. | Price closes back inside the range, or the range is unusually wide compared with recent days. |
| Outside bar breakout | The high and low of the outside bar. | Within the next 3 candles, a candle closes beyond the outside bar's high (long) or low (short). | The middle of the outside bar. | 2 times the risk. | Price closes back inside the outside bar right after the break. |
| Previous day high and low break | The previous session's high and low. | A candle closes beyond the previous day high or low, ideally with above-average volume. | Back inside, beyond the breakout candle's opposite end. | 2R. | A quick close back inside yesterday's range, which turns it into a failed breakout. |
| Bollinger band breakout | The upper and lower Bollinger bands (20, 2), after a period when the bands were narrower than usual. | A candle closes outside a band for the first time, while the bands are widening. | The middle band (the 20-period average). | 2 times the risk. | The close outside the band is a single spike in a wide, noisy market. Without a prior squeeze, band breaks often snap back. |
| Keltner channel breakout | Keltner channel: 20 EMA ± 2 ATR. | A candle closes outside the channel after the prior candle closed inside it. | The middle line (20 EMA). | 2 times the risk. | A close straight back inside the channel. |
| NR7 breakout | The high and low of the NR7 candle: the narrowest of the last 7 candles (the daily candle in the classic version; the live chart uses its own candles). | Within the next 5 candles, a candle closes beyond the NR7 high or low. | The opposite side of the NR7 candle. | 2R. | Both sides break the same day. |
| Three-bar play | The high of the ignition candle (the low for shorts). | After one or two small pause candles that stay in the top half of the ignition candle, a candle closes above the ignition high. | Below the low of the pause candles. | 2 times the risk. | The pause gives back more than half of the ignition candle. That is no longer a pause, it is a reversal. |
| Triangle breakout | The flat side of the triangle, tested at least twice. | A candle closes beyond the flat side. | Beyond the last swing inside the triangle. | The triangle's widest height projected from the breakout. | Breakout late in the apex (the tip of the triangle), where moves tend to fizzle. |
| Volatility squeeze breakout | The squeeze: Bollinger bands inside Keltner channels. | The squeeze ends on a closed candle and momentum closes in one direction. | The opposite side of the squeeze range. | 2R. | False starts in both directions. |
Reversal (15)
Spot the moment a move runs out of fuel and turns.
| Strategy | Where's the level | Trigger (confirmation) | Stop | Target | It fails when |
|---|---|---|---|---|---|
| Double bottom and top | The neckline: the highest point between the two lows. | A candle closes above the neckline. | Below the lower of the two bottoms. | The pattern's height projected above the neckline. | The second bottom closes well below the first, or price stalls under the neckline. |
| Engulfing candle at a key level | A known level: yesterday's high or low, VWAP, or the latest confirmed swing high or low. | At the level, a candle closes with its body fully engulfing the previous candle's body in the opposite direction. | Beyond the engulfing candle's extreme. | 2R. | The engulfing candle appears in the middle of nowhere, away from any level. |
| Morning and evening star | The three-candle pattern itself. | The third candle closes beyond the midpoint of the first candle's body. | Beyond the pattern's extreme. | 2 times the risk. | The next candles close back beyond the pattern's extreme. |
| Pin bar rejection | A key support or resistance level. | A closed candle with a wick at least twice the body, pointing into the level, closing back away from it. | Beyond the wick tip. | 2R. | The next candle closes beyond the wick tip. |
| Round number rejection | The nearest round number, sized to the market's recent volatility. | A candle opens on one side of the round number, wicks through it and closes back on the side it came from. | Beyond the wick. | 2 times the risk. | Price closes beyond the round number and keeps going. |
| RSI overbought and oversold | RSI(14) at 30 and 70. | RSI closes back above 30 after being below it (or back below 70 after being above it). | Beyond the extreme of the last 6 closed candles. | 2 times the risk. | Strong trends, where RSI can stay overbought or oversold for a long time. |
| Three soldiers and three crows | The start of the three-candle run. | The third strong candle closes, completing the pattern. | Beyond the first candle's extreme. | 2 times the risk. | A deep pullback right after the third candle, which often happens when the run is already stretched. |
| Tweezer tops and bottoms | The matching lows of two candles, at the lowest point of the last 15 candles (matching highs at the highest point for tops). | A red candle followed by a green candle with almost the same low, the green candle closing above the middle of the red one (the reverse for tops). | Just below the shared low. | 2 times the risk. | The next candle closes below the shared low. The level that held twice did not hold a third time. |
| Failed breakout | The high or low of the 30 candles before the last 4. | Within 3 candles of a close beyond the level, a candle closes back inside the range. | Beyond the extreme of the failed breakout. | The middle of the range. | Price re-breaks and closes beyond the extreme. |
| Head and shoulders | The neckline: the lowest low between the two shoulders, drawn flat (the highest high for an inverse pattern). | A candle closes beyond the neckline. | Beyond the right shoulder. | The distance from the head to the neckline, projected down from the neckline. | The right shoulder rises above the head. |
| Key reversal bar | The lowest low of the previous 10 candles (highest high for shorts). | A candle trades below that low, then closes above the previous candle's high (above that high, then below the previous low, for shorts). | Just below the reversal candle's low. | 2 times the risk. | The next candles fall back below the middle of the reversal candle. |
| Liquidity sweep | Equal highs or lows: two confirmed swing points within a small distance of each other in the last 90 candles. | A candle wicks through the level and closes back on the original side of it. | Beyond the tip of the sweep wick. | 2R. | The next candle closes beyond the level again, turning the sweep into a real breakout. |
| RSI divergence | Two confirmed swing lows (or highs) on price and RSI(14). | After the divergence is confirmed, a candle closes above the high of the second swing candle. | Below the second swing low. | The last swing high (low for shorts) if it is at least 1R away, otherwise 2R. | A third lower low with weaker RSI. Divergence can repeat several times in strong trends. |
| MACD divergence | The last two confirmed swing lows (swing highs for shorts). | Price's second swing low is lower, MACD at that low is higher, and a candle then closes above the high of the second swing low's candle. | Just below the second swing low. | 2 times the risk. | Strong trends, where divergence can repeat several times before price actually turns. |
| Three pushes | The third push's extreme. | A candle closes beyond the low between the second and third pushes. | Beyond the third push. | The start of the pattern (the swing before the first push) if it is at least 1R away, otherwise 2R. | A fourth push to a new extreme. |
Mean reversion (8)
Bet on price snapping back toward an average after stretching too far.
| Strategy | Where's the level | Trigger (confirmation) | Stop | Target | It fails when |
|---|---|---|---|---|---|
| Stochastic crossover | Stochastic (14, 3, 3) with zones at 20 and 80. | %K crosses above %D while %D is below 20 (or below %D while %D is above 80), on a closed candle. | Beyond the extreme of the last 5 closed candles. | 2 times the risk. | Trending markets, where the oscillator stays pinned at one extreme. |
| VWAP reclaim | Session VWAP. | After at least 8 of 10 candles close below VWAP, a candle closes back above it after dipping to it, and the next candle closes above that candle's high. | Below the low of the last 3 candles, and at least a little under VWAP. | VWAP plus one standard deviation if that is at least 1R away, otherwise 2R. | Price closes back below VWAP. |
| 20 EMA snapback | The 20 EMA, and price more than 3 ATRs away from it. | After the stretch, a candle closes back past the previous candle's low (after a run up) or high (after a run down). | Beyond the extreme of the last 4 closed candles. | The 20 EMA. | News-driven moves that keep going. Stretched can get more stretched. |
| Bollinger band fade | The upper and lower Bollinger bands (20, 2). | A candle closes back inside the band after a close outside it. | Beyond the extreme outside the band. | The middle band. | Band walks in strong trends. |
| Gap fill | The previous session's closing price. | Between 9:35 and 11:00 ET, after a gap of at least 1.5 ATR, a candle closes below the first 5-minute low (after a gap up) or above the first 5-minute high (after a gap down). Once a day. | Beyond the opening extreme. | The previous close. | Large gaps on major news, which often keep running. |
| Keltner channel fade | The upper and lower Keltner channel (20 EMA, 2 ATR). | A candle closes outside the channel, and the next candle closes back inside it in the opposite colour. | Beyond the extreme of the last 4 closed candles. | The 20 EMA, the middle of the channel. | Breakouts with momentum, where price walks along the outside of the channel. |
| RSI(2) pullback | Price above its 200 moving average (the 200-day in the classic daily version; the 200 EMA on the live chart). | RSI(2) closes below 10. | The classic daily version exits on time (after 5 days) or uses a fixed percentage. The live chart uses 1.5 ATR from entry. | A close back above the 5 moving average (the 5 EMA on the live chart), capped at 2R. | Bear markets, where oversold gets more oversold. |
| VWAP band fade | The ±2 standard-deviation VWAP band. | A candle closes back inside the band after closing outside it. | Beyond the extreme outside the band. | VWAP. | Trend days, where price rides the band instead of returning. |
Smart money (8)
Read where large orders and resting stops sit, ICT-style.
| Strategy | Where's the level | Trigger (confirmation) | Stop | Target | It fails when |
|---|---|---|---|---|---|
| Break of structure continuation | The prior confirmed swing high. | A candle closes above it; enter when the following pullback holds and a candle closes higher. | Below the pullback low. | 2R. | The pullback closes below the swing low that led to the break. |
| Fair value gap fill | The gap between candle 1's high and candle 3's low (for a bullish gap). | Price returns into the gap and a candle closes back in the original direction. | Beyond the far side of the gap. | 2R. | A candle closes completely through the gap. |
| Inverse fair value gap | A fair value gap that a candle has closed through (the inverse gap). | Price comes back into the inverse gap and a candle closes back out of it, in the new direction. | Just beyond the far side of the gap. | 2 times the risk. | Price closes back through the gap the other way. The flip did not hold. |
| Judas swing | The Asian session high or low, 6:00 PM to 3:00 AM ET. | Between 3:00 and 5:00 ET, price sweeps the Asian high or low and, within 3 candles, a candle closes back inside the Asian range. Once a day. | Beyond the sweep's extreme. | The opposite side of the Asian range if it is at least 1R away, otherwise 2R. | Price keeps extending after the sweep. |
| Market structure shift | The last confirmed lower high in a downtrend of lower highs and lower lows (the last higher low in an uptrend for shorts). | A candle closes above it. Within 20 candles price pulls back to half of the shift move and a candle closes higher. | Below the low of the shift move. | 2R. | Price makes a new low after the shift. |
| Optimal trade entry | 62%–79% retracement of the last confirmed swing. | The whole pullback stays inside the 62%–79% zone (never past 79%), and a candle closes back in the trend direction beyond the prior candle. | Beyond 100% of the swing. | The swing extreme. | A close beyond the swing's start. |
| Order block retest | The high and low of the last down candle before a strong up move that broke a prior high. | Price returns into the block and a candle closes up out of it. | Below the order block. | The high that was broken if it is at least 1R away, otherwise 2R. | A close through the block. |
| Silver Bullet | A fair value gap formed inside the 10:00–11:00 ET window. | Price returns into the gap and a candle closes in the gap's direction, still inside the 10:00–11:00 ET window. | Beyond the candle that created the gap. | 2R. | No sweep of liquidity before the gap forms. |
Futures sessions (6)
Strategies built around the clock: the Asian, London and New York sessions.
| Strategy | Where's the level | Trigger (confirmation) | Stop | Target | It fails when |
|---|---|---|---|---|---|
| Asia range breakout | The high and low of the Asia session, 18:00 to 3:00 New York time. | Between 3:00 and 8:00 ET, a candle closes above the Asia high (long) or below the Asia low (short). Two attempts per day at most. | The other side of the range, or its middle if the range is wide. | 2 times the risk. | A very wide Asia range, which leaves little room, and London opens that fake one way and reverse. |
| Gap and go | The high of the first 5-minute candle. | A candle closes above the first 5-minute high. | Below the first 5-minute low. | 2R. | The gap begins to fill. |
| London open breakout | The Asian session high and low, 6:00 PM to 3:00 AM ET. | Between 3:00 and 6:00 ET, a candle closes outside the Asian range. Two attempts per day at most. | The other side of the range, or its middle if the range is wide. | 2R. | A close back inside the Asian range. |
| New York open drive | The opening price. | The first 5 minutes after 9:30 ET move more than 1.5 ATR and close beyond the overnight range. Enter when the first pullback turns: a candle closes beyond the pullback candle in the drive direction, before 10:30 ET. | Beyond the pullback's extreme. | 2R. | The opening price is revisited. |
| Overnight high and low test | The overnight (6:00 p.m.–9:30 a.m. ET) high and low. | Between 9:30 and 11:00 ET, a candle trades beyond the overnight high or low and closes back inside. Once per side per day. | Beyond the rejection wick. | VWAP if it is at least 1R away, otherwise 2R. | Repeated tests that weaken the level. |
| Initial balance break | The high and low of 9:30–10:30 ET. | Between 10:30 ET and noon, a candle closes beyond the initial balance. Once a day. | The other side of the range, or its middle if the range is wide. | A 100% extension: the range's height projected from the break. | Price closes back inside and travels to the other side. |
Volume and value (5)
Use where the most volume traded to find fair price and its edges.
| Strategy | Where's the level | Trigger (confirmation) | Stop | Target | It fails when |
|---|---|---|---|---|---|
| Anchored VWAP bounce | VWAP anchored to the most recent major swing in the last 240 candles: the lowest low for longs, the highest high for shorts. | Price tags the anchored VWAP and a candle closes back away from it (higher for longs, lower for shorts). | 1 ATR beyond the anchored VWAP. | 2R. | Closes below the anchored VWAP. |
| Point of control retest | A previous session's point of control. | Price reaches the level and a candle closes rejecting it. | Beyond the rejection extreme. | 2R. | Price slices through with volume. |
| The 80% rule | Yesterday's value area. | After an open outside it, two 30-minute candles in a row (counted from 9:30 ET) close inside value, before 3:00 PM ET. | Just outside value, beyond the edge price came back through. | The far edge of the value area. | A close back outside value. |
| Value area rejection | Yesterday's value area high and low. | Price tests the edge and a candle closes back inside value. | Beyond the test extreme. | Yesterday's point of control. | Acceptance outside value: several closes beyond the edge. |
| Volume climax reversal | The low of a climax candle: at least 2.5 times the average volume of the last 20 candles, at the lowest point of those 20 candles (the high for shorts). | The climax candle closes in the upper half of its range, and the next candle closes green above the climax candle's close (the reverse for shorts). | Just below the climax candle's low. | 2 times the risk. | Heavy volume that keeps coming on the next candles. One big candle is not always the last one. |
The rules every setup follows
- Every rule is checked only when a candle has closed. Nothing is decided on a candle that is still forming.
- A level is final only after the candles that define it have closed (an opening range is final when its last candle closes; a swing high or low is final only after the candles to its right have closed).
- Higher-timeframe values come from the last closed higher-timeframe candle, never the one still forming.
- Once a setup is confirmed, its level, entry, stop and target are locked. They are never moved, redrawn or deleted, win or lose.
- Every setup is logged with the time it was confirmed and the time it finished, so the record can be checked against the chart.
Watch any of these play out on a live chart in Trade with a plan, then practice on paper first with the Paper Route.
Education only, not advice. These are common definitions, not signals or anyone's results. No strategy works every time. Most people who day trade lose money.