Day traders always seek to make profits by leveraging large amounts of capital to take advantage of small price movements in highly liquid stocks or indexes. A typical day trader looks for two things in a stock i.e, liquidity and volatility. Liquidity allows you to enter and exit a stock at a good price . Volatility is simply a measure of the expected daily price range - the range in which a day trader operates.Technical analysis is the study of market action primarily through the use of charts, for the purpose of forecasting future price trends. It assumes three things:
1. Market action discounts everything.
2. Price moves in trends.
3. History repeats itself.
