10 Best Indicators for intraday Trading


Trading in Stock market is based on analyzing different charts and with different techniques using only reliable indicators. Making decisions regarding any trade is fully based on patterns and indicators. For every trader whether he/she is new to the market or an experienced, indicators play an important role in market analysis. The stock market is very dynamic and least predictable. Current affairs and concurrent events also heavily influence the market situation.

Indicators provide useful information and ideas to predict about market trends and behavior. These can be helpful in making your trade profitable and maximize your returns. Read this article to know about top 10 best indicators for intraday trading and their significance in decision making.

Why Intraday Indicators???

Indicators are based on historical data. These Indicators provides the important information regarding the market move and behavior in past trading sessions. This may be an useful Intraday instrument to keep third eye on the market trend by following intraday indicators. Basically, intraday indicators are overlays on charts that provide crucial information through mathematical calculations. As the name suggests, the indicators indicate the directional ideas where the price will go. Here is some information about some Intraday Indicators types.

Types of Intraday Indicators

01. Trend indicators

Some particular indicators indicate the trend of the market or the stock. In other words these indicators tell about in which direction the market is actually inclined. Actually these are oscillators that tends to move between high and low.

02. Momentum indicators

Momentum indicators like Relative Strength Index (RSI) indicate the strength in the market or stock. This tell about whether there is strength in the movement or not. They also give the signal of reversal of the market by moving between top to bottom.

03. Volume

Volume indicators indicate how the volume changes during the trading sessions. Typically it indicates the number of stocks that are being bought and sold over the time. When the price changes, volume indicates how strongly buyers and sellers get active. So we can add the volume as important indicator to maximize return in intraday trading.

04. Volatility Indicator

Volatility indicator presents the quickness of the move or how much price is changing in the given period. It indicates how the prices are changing and with what speed. So we can understand higher the volatility bigger price moves and vice versa lower volatility indicates high big moves. Here you can find top 10 indicators used by most of the intraday traders.

10 Best Indicators for Intraday Trading

01. Volume

Volume is one of the very important indicators. It shows the number of stocks being bought or sold at any particular price. By focusing on volume you can guess whether the move in the market is genuine or fake outs.


02. VWAP (Volume weighted Price)

VWAP stands for Volume weighted Price. As name indicates this is a volume weighted price indicator and shows the movement of the price in consistence with volume. Traders assume if price is above the VWAP the buyers are active and prices will go up. If it is below then there is probability to go down.

03. RSI (Relative Strength Index)

RSI or (Relative Strength Index) is use to understand the momentum. So it is a momentum indicator. Ranging from 0 to 100 it indicates whether the stock is overbought or oversold in the market. Generally it is assumed that if the RSI line is above 70 it indicates overbought market. If it runs below 30, then it will indicate as oversold market. Relative Strength Index (RSI) is also used by traders to estimate the trend of the market. If RSI is above 50 then it will be assumed that market in uptrend and if below 50 then it will be the sign of down trend.


04. Moving averages

Moving averages is one of the frequently used indicators particularly for intraday trading. Typically this indicator is used to It provides information about the trend of the market. This is also used for trend reversal trading and sting up the stop losses. Swing traders also use this indicator as cross over analysis of two or more moving averages. Frequent used moving averages are 20 DMA, 50 DMA , 100 DMA and 200 DMA.

05. Pivot Points

Pivot Points are used for support and resistance analysis. Breakdown of one point means downward move for next support point. Outbreak of one resistance indicates upward move for next resistance.

06.  Super Trend

Super Trend is also one of the very much used indicators. This show clear indication of buy or sell on the basis of some mathematical calculation.

Super Trend

07. Bollinger Bands

Bollinger bands show the volatility in the market. It has 3 parts i) a middle part which is a 20-day simple moving average, a +2 standard deviation upper bang and a -2 lower deviation lower band. The price ranges between the upper and the lower band. When there is higher volatility in the stock or market and it moves in any direction. When the band widens and this situation is called band blast. It helps traders to identify the volatile stocks to trade in intraday. So this is also one of the best indicators used in intraday trading.

08. MACD

MACD stands for Moving Average Convergence Divergence. It helps the traders to understand the direction and trend of the market and momentum also. It is assumed that if MACD is above zero the price is in upward direction. If below zero that will show the downward moment.

09. Stochastic Oscillator

The stochastic oscillator is actually a momentum indicator. The oscillator compares the closing price of a stock to a range of prices over a number of periods plotted between 0 (zero) and 100 (hundred). The movement in uptrend will show that the stock may make new high and if in down trend then there may be new lows.

10. ADX (Average Directional Index)

ADX (Average Directional Index) measures the trend, momentum as well as strength of stocks. It shows high strength if above 40 either in upward or downward trend depending upon the direction of the price and movement. If  moving below at 20 or below 20 then the trend is considered to be week.

So these were some important indicator used in intraday trading. trading in stocks and derivatives involve high risk so use these indicators with your analysis.

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2 thoughts on “10 Best Indicators for intraday Trading”

  1. Pingback: 10 day trading strategies for beginners | How to become a successful day trader - Mudra Money

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