Heckyl Alpha Pulse

15-Minutes Built-up screen: Why day traders should use it?

Posted on March 29, 2017 Updated on March 30, 2017

To spot opportunities in the today’s fast-paced stock markets, day traders need access to advanced trading tools such as 15-minutes built up screen. It detects intra-day bullish/ bearish trend for a stock or an index futures by monitoring open interest (OI), price and volume every 15-minutes. By using 15-minutes built up screen, traders can identify where the short or long positions are created in real-time. It can help traders to make timely entry and exit from long or short positions.  

Let us see how traders can use 15-minutes built up screen.

Petronet LNG:
On March 27, 2017, Petronet LNG witnessed a series of long built ups signaling a bullish bias for the day. Out of 25 intervals of 15 minutes in a day, the stock recorded long built up for 16 intervals. The stock maintained upward momentum as long built ups have dominated day’s trade (See image 1 and 2 below). The stock surged nearly 3 percent to close at Rs 408 on Monday.

(Image 1: Petronet LNG 15-minutes built up screen for March 27)

A trader could have created a long position in the stock futures around 10:45 am after noticing long built-ups with high volumes for preceding three intervals. He could have made profit by initiating long position around Rs 400 and then covering it around Rs 407, netting a profit of Rs 7 per unit, or Rs 10,500 on one lot of 1,500 units of underlying stock.

(Image 2: Petronet LNG price chart for March 27)

Tata Steel:
On March 27, Tata Steel witnessed a series of short built ups indicating a bearish bias for the day. Out of the 25 intervals, Tata Steel recorded short built-up for 15 intervals. Share price of Tata Steel was under pressure as short built ups have dominated day’s trade (See image 3 and 4 below). The stock dropped 3.4 percent to close at Rs 477.35 on Monday.

(Image 3: Tata Steel 15-minutes built up screen for March 27)

After seeing first three zones of short built-ups between 9.15 am to 10 am, a trader could have shorted the stock around Rs 482 immediately after 10 am. He could have made profit by covering the short position around Rs 477, netting a profit of Rs 5 per unit, or Rs 10,000 on one lot of 2,000 units of underlying stock.

(Image 4: Tata Steel price chart for March 27)

Bottom-line:
Heckyl’s 15-Minutes Built-up is a powerful screen for day traders. This screen not only helps in finding trading opportunities, but also helps in deciding when to exit or close position. However, one must not forgot that the futures market is highly leveraged. A minor price change, could result in huge losses. So if you are new to the trading world, it is advisable to first understand how futures market works as there are no short cuts for becoming a successful trader.

To know more about our FNO Analytics Platform, mail us at info@heckyl.com