5 Most Used Intraday Trading Indicators

Updated: Feb 12

Buying and selling stocks on the same day is referred to as intraday trading. Intraday Trading is trading with rapid gains as part of a short-term plan. The goal is to benefit from market indexes moving up and down. It is also referred to as Day Trading in many instances.

As the shares are bought and sold on the same day there are no ownership shares changes as a result of the trades.

Intraday Indicators

While Stock market trading entails a great deal of chart analysis and decision-making based on patterns and indications, price changes are typically used to make intraday trading choices.


The stock market is quite dynamic, and current events and other events have a big impact on the market, so to be lucrative, intraday trading necessitates accurate timing of sell/buy choices. In such a situation, Indicators give valuable insight into industry trends.


Few of the important Intraday Indicators include

  1. Trend

  2. Volatility

  3. Overlays

  4. Breadth Indicators

  5. Volume

  6. Moving Average

  7. Bollinger Bands

  8. Momentum Oscillators

  9. Relative Strength Index ( RSI )

  10. Super Trend

  11. Stochastic Oscillator

  12. Average Directional Index


Intraday Trading is a vast topic among itself and hence this list continues. We are going to discuss some of them in this blog so your Intraday trading journey becomes the fruitful one.


1. TREND



Trend indicators assist in capturing profits from an asset's movement in a certain direction. These indicators show which way the market is changing. Trend indicators are Oscillators that tend to oscillate between high and low levels. In intraday trading, the most frequent approach to detect the trend is to use a trend line. A simple yet one of the basic indicators of Intraday Trading.


2. VOLATILITY


In order to make money, intraday traders need price movement. Stocks that move a lot are generally be chosen by intraday traders i.e Stocks with medium to high Volatility. If you are wondering, Volatility is a metric measuring how much a financial instrument's price changes over time. Usually, the Volatility Calculator uses volatility to construct an intraday trading method and buy-sell levels.


3. BOLLINGER BANDS



The indicator depicting stock's standard deviation The moving average, upper limit, and lower limit are the three lines that make up this graph. This graph proves to be a boon for intraday trading helping traders to find the stock's price variance over a period of time. In simpler words, it indicates the volatility in the market.

It also assists traders in determining the price range of a specific stock.


4. RELATIVE STRENGTH INDEX ( RSI )



A tool used to determine the trend of the market. It is sometimes also referred to as one of the indicators of momentum.

Generally used to determine whether a stock or other asset's price is overbought or oversold, it is a scale from 1 to 100 that graphically depicts when a stock is sold or acquired at its highest point. When the RSI exceeds 70, it is regarded as overbought, and when it falls below 30, it is deemed oversold.


5. STOCHASTIC OSCILLATOR



Another momentum indicator is the stochastic oscillator. The oscillator compares a stock's closing price to a range of price points over a given time period. The stochastic oscillator is scope-bound, which means it always oscillates between zero and one hundred. An indicator that compares a security's most recent closing price to its highest and lowest prices over a certain time period. It is also a very good indicator for anticipating reversals of trends.

 

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