Core Guide to Intraday Trend Positioning

I. Fundamental Understanding of Intraday Trend Determination
Intraday trend refers to the continuous directional movement of prices within a trading day. It is the core basis for short-term trading strategies, reflecting the balance of bullish and bearish forces and serving as a key risk control anchor. Intraday trading has particular characteristics: requires rapid decision-making at the second/minute level; high liquidity during opening and closing periods; increased volatility in after-hours trading; sensitivity to unexpected events; frequent trading necessitates cost control; and extreme reliance on technical tools and trader discipline.
II. Four Key Tools for Trend Determination
1. K-Line Pattern Positioning
Trend Judgment: Higher highs and higher lows (HH/HL) indicate an uptrend, suitable for buying on dips; lower lows and lower highs (LL/LH) indicate a downtrend, suitable for shorting on rebounds; structural breaks may signal reversals or acceleration.
Key Patterns: Hammer at the end of a decline, bullish engulfing pattern, hanging man, dark cloud cover, and three black crows are important reversal signals.
Risk Avoidance: Beware of false breakouts, verify with subsequent K-lines and volume; assess trend strength through changes in trendline slope.
2. Moving Average System Confirmation
Trend Signals: Short, medium, and long-term moving averages trending in the same direction (slope >30° indicates strong trend, <15° suggests consolidation/reversal); formation of bullish or bearish alignments; golden cross signals bullish, death cross signals bearish.
Effective Breakouts: Price breaking above moving averages must exceed 3% amplitude, stabilize above 2 consecutive K-lines, and volume must increase to at least 1.5 times the 5-day average volume.
Practical Application: Use 5/15-minute moving averages for intraday trading; 20/60-minute for swing trading; enables tiered position building and dynamic profit-taking.
3. Multi-Timeframe Resonance Verification
Logic: Main cycle (e.g., 1-hour chart) determines direction; subordinate cycles (e.g., 15/5-minute charts) identify buy/sell points; subordinate cycles must follow the main cycle trend.
Resonance Signals: Same direction of moving averages and MACD across multiple timeframes significantly increases success rate (e.g., MACD above zero on three cycles yields a 78% probability of bullish success).
Response Strategies: Reduce positions on divergence in subordinate cycles; multi-timeframe divergence can be used to reverse position.
4. Volume and Price Coordination Verification
Effective Trends: Increasing volume with rising prices (strong upward momentum), decreasing volume with falling prices (exhausted selling pressure) are healthy signals; flat volume with stagnant prices warrants caution.
Divergence Warnings: Price making new highs/lows without volume confirmation may indicate trend exhaustion.
Anomaly Alerts: Extreme volume peaks at tops, wash trading, sudden volume surges at the end of trading—these are often traps for false signals; require confirmation from subsequent price action.
III. Practical Strategy Integration
1. Triple Filtering Mechanism
Combine K-line patterns (structural judgment), moving average system (trend confirmation), multi-timeframe resonance (signal verification), supplemented by volume analysis to filter false breakouts and improve trading success rate.
2. Risk Control and Position Management
Stop-loss Setting: Limit maximum loss per trade to 2% of total capital; dynamically adjust stop-loss based on volatility.
Position Strategy: Initiate with 30% upon breakout; add 50% on pullback confirmation; close 50% on short-term moving average cross; exit all if price breaks below trendline.
3. Discipline Requirements
Standardized Signals: Quantify trading conditions to reduce subjective judgment.
Review and Optimization: Record daily trading rationale and deviations for targeted improvements.
Emotional Control: Set maximum daily loss limits to prevent revenge trading; distinguish between expected and actual market conditions; strictly adhere to strategies.