Day trading is a tough one, with lots of conflicting gurus claiming it is easy when it absolutely is not. I am not an expert at day trading—you have seen my process, which is essentially the opposite of it—but here is some valuable technical analysis knowledge that can make you a more complete trader.
If you start looking at candlestick patterns like head and shoulders that can just change depending on how you present the chart, you might as well be using star signs. Below is what you actually need to be proficient at to be a profitable day trader.
WHAT YOU NEED TO MASTER
Below are the core concepts you should learn and master to become proficient at day trading. These aren't flashy patterns—they're the fundamental mechanics that professional traders use.
1. Support & Resistance
Before anything else, you need to be able to read a chart and identify where price is likely to react. Support and resistance are the foundation of every trade setup—without this skill, nothing else matters.
- Learn to identify key horizontal levels where price has historically bounced or rejected
- Understand how support becomes resistance (and vice versa) after a level breaks
- Spot dynamic support/resistance using moving averages, trendlines, and VWAP
- Recognise how institutional orders cluster around major levels, creating liquidity zones
2. Market Structure & Mechanics
Understand the foundational logic behind how markets actually operate—from auction principles to how liquidity is created, matched, and moved.
- Discover the Liquidity Auction and its effect on price movement
- Understand Matching Algorithms and how trades are filled
- Master Auction Market Theory (AMT) and the role of Lead Market Makers
3. Volume Market Structure
Learn how volume builds market structure and how professional traders use it to spot high-probability setups in both the short and long term.
- Identify Business Zones, Trends, and Long-Term Profiles
- Use Volume Profile to execute day trading setups with precision
- Master the 4 Opening Types: In Value, Out of Value, Break-ins, and Continuations
4. Time-Price Opportunity (TPO) / Market Profile
Master the logic of Market Profile and how the interaction between time and price reveals the intent behind every session.
- Break down key Market Profile elements and structure
- Identify Value Areas, Points of Control (POC), and Range Extensions to uncover high-probability trade locations
- Build real-time execution context using session symmetry and imbalance
5. Order Flow Dynamic Setups
See exactly where large players enter and exit using advanced order flow tools—and execute with professional precision.
- Basics of Footprint Charts
- Learn the main order flow patterns (e.g., absorption, exhaustion, stacked imbalances, delta divergence)
- Adapt order flow into your strategy for confirmation of entries, stops, and profit targets
THE REALITY OF DAY TRADING
These concepts give you the tools to read the market like the institutions do. However, combine them with strong risk management and psychological discipline, because day trading remains one of the hardest ways to make money in the markets.
Most who attempt day trading without mastering these foundations will lose. Use this knowledge to complement longer-term approaches rather than relying on it as your only edge.
KEY TAKEAWAYS
- Candlestick patterns alone won't save you — they change based on timeframe and presentation
- Master market structure first — understand how liquidity and auctions actually work
- Volume tells the real story — learn to read Volume Profile and TPO
- Order flow shows institutional activity — see where the big players are trading
- Day trading is the hardest way to trade — consider longer-term approaches
- Risk management is non-negotiable — even the best setups fail
Unless you have the time, capital, and temperament for intensive screen time and constant decision-making, consider the Vector Ridge approach: set your signals in the morning and let the math work for you. Our methodology is essentially the opposite of day trading—and our results speak for themselves.