The Fifteen Minute Rule & Lessons in Technical Trading. – Sudarshan Sukhani Blog (2024)

Intra day traders / Swing Traders often face difficulties in entering the market when there is a gap open. But the gap need not destroy your trading plan. You can do a quick analysis, adjust your trading strategy and get into a good position well after the crowd pulls the trigger on a gap play. Here is how.

Let the index/stock trade for the first fifteen minutes and then use the high and low of this “fifteen minute range” as support and resistance levels. A buy signal is given when price exceeds the high of the 15 minute range after an up gap. A sell signal is given when price moves below the low of the 15 minute range after a down gap. It’s a simple technique that works like a charm in many cases.

If you use this technique, though, a few caveats are in order to avoid whipsaws and other market traps. The most common whipsaw is a trading range that lasts longer than 15 minutes. If an obvious range builds in 20, 25 or even 30 minutes , use those to define your support and resistance levels. Also consider the higher noise level in the morning. A breakout that extends only a tick or two can be easily reversed and trap you in a sudden loss. So let others take the bait at these levels, while you find pullbacks and narrow range bars for trade execution.

Lessons in Technical Trading.

thekirkreport.comtalks about mistakes in trading.
The report asked a question from its subscribers: “what is the most important thing you’ve learned about investing, trading, and/or the markets?”
Some of the lessons learned were:

  • Success takes longer than expected
  • That you must learn to trade and trust yourself and not to become so dependent on the opinions of others, which ultimately keeps you from becoming the best you can be
  • The very best profit opportunities occur in the midst of extreme emotional sentiment
  • Persistence and dedication to a daily routine is key
  • Developing an edge is the first step for trading successfully. Without that, disciplined trading will only make sure you gradually losing money
  • You have to respect the market even if you think it is under some kind of manipulation
  • Anything can happen. Trading is all about probabilities

There is more in the report which was mentioned earlier.
Dennis Gartmangives a set of trading rules. The basic themes are:

  • Capital comes in two varieties: Mental and that which is in your pocket or account. Of the two types of capital, the mental is the more important and expensive of the two. Holding to losing positions costs measurable sums of actual capital, but it costs immeasurable sums of mental capital.
  • In bull markets we can only be long or neutral, and in bear markets we can only be short or neutral. That may seem self-evident; it is not, and it is a lesson learned too late by far too many.
  • Try to trade the first day of a gap, for gaps usually indicate violent new action. We have come to respect “gaps” in our nearly thirty years of watching markets; when they happen (especially in stocks) they are usually very important.
  • Trading runs in cycles: some good; most bad. Trade large and aggressively when trading well; trade small and modestly when trading poorly. In “good times,” even errors are profitable; in “bad times” even the most well researched trades go awry. This is the nature of trading; accept it.
  • Keep your technical systems simple. Complicated systems breed confusion; simplicity breeds elegance.

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The Fifteen Minute Rule & Lessons in Technical Trading. – Sudarshan Sukhani Blog (2024)


What is the 15 minute rule in trading? ›

A buy signal is given when price exceeds the high of the 15 minute range after an up gap. A sell signal is given when price moves below the low of the 15 minute range after a down gap. It's a simple technique that works like a charm in many cases.

What is the 15 minute strategy? ›

A 15-minute trading strategy provides a structured approach to identifying and executing profitable trades within a short time frame. By focusing on short-term price movements, traders can minimize their risk exposure while potentially maximizing their profits.

What is No 1 rule of trading? ›

Rule 1: Always Use a Trading Plan

You need a trading plan because it can assist you with making coherent trading decisions and define the boundaries of your optimal trade. A decent trading plan will assist you with avoiding making passionate decisions without giving it much thought.

What is the 90 rule in trading? ›

It is a high-stakes game where many are lured by the promise of quick riches but ultimately face harsh realities. One of the harsh realities of trading is the “Rule of 90,” which suggests that 90% of new traders lose 90% of their starting capital within 90 days of their first trade.

Is 15 min time frame good for trading? ›

A 10- or 15-minute chart time frame is for someone who wants to see the major trends and movements throughout the trading day, not each little gyration (like the 1- or 5-minute). If you want to trade on a 15-minute chart, build and test the strategy on a 15-minute chart.

What is the 80% rule in day trading? ›

Definition of '80% Rule'

The 80% Rule is a Market Profile concept and strategy. If the market opens (or moves outside of the value area ) and then moves back into the value area for two consecutive 30-min-bars, then the 80% rule states that there is a high probability of completely filling the value area.

Is the 15 minute rule real? ›

But where did this “rule” come from, and is it even a rule to begin with? Mr. James Stanley, Dean of Students, revealed the truth regarding the 15-Minute Rule: “It doesn't exist. Total student myth.

What is the 15 minute rule for solving problems? ›

In brief, it's where we advise you to drop everything, become 100% focused on the problem and try to come up with a solution. If, after 15 minutes, you can't solve the problem, then it's time to ask someone for help. Your time is valuable (particularly if you are paid to work on a project).

What is the 1 3 2 strategy? ›

The 1-3-2 structure supposedly appears as a tree. The strategy profits from a small increase in the price of the underlying asset and maxes when the underlying closes at the middle option strike price at options expiration. Maximum profit equals middle strike minus lower strike minus the premium.

What is the golden rule for traders? ›

One of the golden rules of trading is to always prioritize risk management. This means determining how much you are willing to risk on each trade and setting appropriate stop-loss orders to limit potential losses.

What are the three golden rules of trading? ›

Always have a stop loss- before entering the trade always decide on the stop loss. If your stop loss got hit then close your position immediately. Never convert investment by carrying the trading positions. Trade less-You are a fresher in the stock market & you don't have experience then don't take risks.

What is the 5-3-1 rule in trading? ›

The numbers five, three, and one stand for: Five currency pairs to learn and trade. Three strategies to become an expert on and use with your trades. One time to trade, the same time every day.

Why do 90% of traders lose money? ›

One of the biggest reasons traders lose money is a lack of knowledge and education. Many people are drawn to trading because they believe it's a way to make quick money without investing much time or effort. However, this is a dangerous misconception that often leads to losses.

What is the 3 5 7 rule in trading? ›

What is the 3 5 7 rule in trading? A risk management principle known as the “3-5-7” rule in trading advises diversifying one's financial holdings to reduce risk. The 3% rule states that you should never risk more than 3% of your whole trading capital on a single deal.

Why 90 people fail in trading? ›

The reason why 90% of retail traders fail is that they ALL think, trade, and gamble the same way. It is a harsh statistic but is very very true. Not many retail traders last longer than 6 months as they do not understand this game at all.

What is the 5 3 1 rule in trading? ›

Clear guidelines: The 5-3-1 strategy provides clear and straightforward guidelines for traders. The principles of choosing five currency pairs, developing three trading strategies, and selecting one specific time of day offer a structured approach, reducing ambiguity and enhancing decision-making.

What is the 11am rule in trading? ›

It is not a hard and fast rule, but rather a guideline that has been observed by many traders over the years. The logic behind this rule is that if the market has not reversed by 11 am EST, it is less likely to experience a significant trend reversal during the remainder of the trading day.

What is the 3 30 rule in trading? ›

The 3-30 Rule: One interpretation of the "3.30 formula" could be related to the 3-30 rule in the stock market. This rule suggests that a stock's price tends to move in cycles, with the first 3 days after a major event often showing the most significant price change.


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