Three Day Trading Strategies for Apple Stocks

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Updated: 05 October 2020

The Apple Inc. stock possesses a vast range of appealing qualities that make it highly popular among many traders. These qualities include high liquidity, a market capitalization of one trillion US dollars, and reliable fundamentals. The high liquidity offers tight spreads and fills with better day trading prices. Although this stock is popular among long-term traders, it is also a viable option for intraday traders. By applying the following intraday trading tips, you might be able to improve your benefits from this quality stock.

1. Two-day high/low trading

The two-day high/low method of day trading is ideal for short-term traders and follows the concept of buying the break from the high of the two days or selling at the break from a two-day low. You can plan this strategy before the market opens in order to be fully prepared. During this planning, be sure there are no relevant releases or events due on that day that could cause increased movement. Applying this strategy to the Apple stock allows for a manipulation of the stock, and the fundamentals of this stock could aid in increasing profits.

Your first move will be to identify the high and low from the past two trading days and switch to a five-minute session. Once the first session has posted a close outside of these points, you can initiate a position. Do this according to the low or high, either placing a long or short position, as the next session begins. As a means of risk management, you should place a stop at the low of the previous session. Once this is done, complete a partial close if possible and adjust the remaining position so you break even.

2. Low volatility ranges

Periods of low volatility might mean very little activity on the markets, but they can prove highly beneficial in terms of profits. This often applies to many forms of trading, such as forex, commodities and CFD trading. However, trading during these conditions requires a certain level of training. Because the price action moves to the side more than up or down during these times, shorter time periods work better when analyzing charts.

One technique used within this method is applying an oscillator to monitor price action on short time frames. Your chosen oscillator should be set at a high sensitivity to price action to recognize overbought or oversold levels. This method assists the trader by tracking short-term price fluctuations during low volatility and plotting short or long positions accordingly.

3. Gap fill

This strategy marks the price gaps from the previous trading day session. These gaps are indicated by the closing price of the previous day and the opening price of the current day’s session. A large difference between the two will reveal a gap. For the sake of trading the Apple stock, a simple or common gap strategy can be used. These common gaps are often filled during that same day’s session. You can plan for this strategy by familiarizing yourself with the pre-market prices and preparing your charts half an hour before the market opens.

A horizontal line can be used to mark the gap, followed by placing a long position as the gap is filled and declines. Alternatively, you could place a short position if the price approaches the gap and then reverses.

Experimenting with and testing these strategies is vital before applying them to real-time trades. It takes a reasonable level of experience to master them, but they prove simple enough to apply to your Apple stock day trading. The greatest advantage provided by these strategies is that they pick up patterns quickly and allow for faster trading. The trick is not to overtrade; instead, you want to set a goal for the day and close once you have reached your goal.

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