One of the best strategies for day trading on the ASX is momentum trading. This approach focuses on stocks that are moving significantly in price with high trading volume, often triggered by news, earnings announcements, or sector-wide movements. Traders identify these stocks early in the session, use technical indicators like moving averages and volume spikes, and aim to enter trades in the direction of the momentum, exiting quickly as the trend shows signs of slowing.

Momentum Trading is one of the most effective day trading strategies on the ASX. It focuses on stocks showing strong price movements with high volume during the trading session. Traders monitor news releases, earnings updates, or sector-wide developments that can trigger significant intraday price swings. Entry is usually timed when the stock breaks a key level with volume confirmation, and trades are exited once the momentum slows.