Intraday trading offers significant profit potential — but success depends heavily on discipline and having a well-defined strategy. One of the most effective approaches traders rely on is breakout trading, particularly after the initial market open. In this blog, we’ll break down a simple yet powerful 15-minute breakout strategy, starting with how to identify the right stocks, especially those showing a gap-up at the open.
Intraday trading is fast-moving and requires sharp decision-making. After the early market volatility settles, breakout setups can provide clear entry points with favorable risk-reward ratios. Let’s explore how this strategy works and how to implement it effectively using a 15-minute chart.
🔹 Strategy Overview
📌 Name: 15-Minute Breakout Strategy (Gap-Up Edition)
This strategy is designed to take advantage of early momentum in stocks that open with a gap-up. Here’s how it works:
Name: Intraday Stock Trading Strategy with Stock Selection
Time Frame: 15-Minute
Best Suited For: NSE stocks with high volume
Goal: Quick profits of 30–40 points per trade
🔹 Time Frame & Setup
- Chart Time Frame: 15-Minute
- Tools Needed:
- Charting platform (e.g., TradingView or Chartink)
- Scanner for gap-up stocks
- Reliable broker with fast execution
🔹 Stock Selection Criteria
Use a stock screener Chartink to filter stocks that show a gap-up opening (i.e., opening price significantly higher than previous day’s close).
Tip: Choose stocks with:
- High volume
- Good liquidity
- Volatility of at least 2%–3% on average
✅ Step 1: Stock Selection (Pre-Market)
- Go to Chartink or any stock scanner platform.
- Filter stocks that show a Gap-Up Opening (price opened significantly higher than yesterday’s close).
- Pick stocks with:
- High Volume
- Good previous day momentum
- Sector strength
Tip: Avoid trading news-based gap-ups — they can be unpredictable.
✅ Step 2: Wait for First 15-Minute Candle
- Open your chart (5Paisa, Zerodha, TradingView, etc.) with a 15-minute time frame.
- Let the first 15-minute candle complete.
- This candle helps you define the initial market range and volatility.
✅ Step 3: Entry Point
- Enter a Buy Tradeonly if:
- The price breaks above the high of the first 15-min candle.
- Preferably on increased volume.
✅ Step 4: Stop Loss (SL)
- Place your Stop Loss just below the low of the first 15-minute candle.
- This keeps your risk defined and controlled.
✅ Step 5: Target (TGT)
- Set a target of 20–30 points.
- Or use Trailing Stop Loss once your trade is in profit — this helps maximize gains during strong moves.
📊 Example (Hypothetical)
Let’s say a stock opened at ₹420 (Gap-Up from ₹400).
First 15-min candle formed a high of ₹428 and a low of ₹417.
- Entry: ₹428 (once candle breaks above)
- SL: ₹417
- TGT: ₹448 (20 points profit)
📌 Tips to Improve Success Rate
- Trade only in stocks with strong news, sectoral support, or FII activity.
- Avoid low volume stocks.
- Don’t chase — wait for the confirmation breakout.
- Stick to your SL and TGT — no emotion trading.
🚫 Common Mistakes to Avoid
- Entering before 15-min candle closes.
- Using tight SLs in volatile stocks.
- Trading too many stocks in one day.
- Ignoring risk-reward ratio (minimum 1:2 is ideal).
🧠 Conclusion
This intraday strategy is simple, effective, and built on structure. By combining gap-up stock selection with a 15-minute breakout rule, you can ride strong morning trends while keeping your risk limited.
The key is not just the strategy, but patience and discipline in execution.
Disclaimer: This analysis is for educational purposes only and not investment advice. I am not a SEBI registered advisor. Please consult your financial advisor before making any investment decisions.
