Useful Intraday Trading Indicators
- Moving Averages: Traders often hear about daily moving averages (DMA), which is the most common and widely used indicator.
- Bollinger Bands: This intraday trading indicator is one step ahead of the moving average.
- Momentum Oscillators:
- Relative Strength Index (RSI):
So, what is the best indicator for stock trading?
There are many technical indicators for doing technical analysis, but few indicators are widely used by the traders in the share market.
- Moving average convergence and Divergence,
- Bollinger Bands,
- Moving Averages (Simple and Exponential)
- Relative Strength Index ,
- Fibonacci Retracements.
- Stochastic Oscillators,
How do stochastic indicators work?
The stochastic oscillator is a momentum indicator comparing the closing price of a security to the range of its prices over a certain period of time. The sensitivity of the oscillator to market movements is reducible by adjusting that time period or by taking a moving average of the result.
What are trend indicators?
Trading in the direction of a strong trend reduces risk and increases profit potential. The average directional index (ADX) is used to determine when the price is trending strongly. In many cases, it is the ultimate trend indicator.