Best Indicator for Intraday Trading

4 mins read
by Angel One

If you’re looking for the best indicator for intraday trading, we might have the answers. Intraday trading indicators are tools that traders use along with trading strategies to make the most out of their trade. Every trader uses a different indicator while there are also traders who use none. It all depends on how successful they are when using indicators for trading.

As a common practice, many traders check the indicators before starting the trading day. So, what exactly can these trading indicators help you identify?

  1. The most accurate intraday trading indicators will be able to help you identify the direction of the trend to determine the movement
  2. You can also identify whether there is a lack of momentum or too much of it in the investment market
  3. Trading indicators can tell you your profit potential due to the volatility
  4. They also help you determine the popularity through volume measurements

With these critical pieces of information received from the trading indicators, traders can effectively assess the market conditions and make informed decisions to earn higher profits.

So, which are the most accurate intraday trading indicators?

1. Moving Averages:

This is one of the most common and widely used indicators. It tells traders about daily moving averages (DMA). The moving average is a line on the stock chart a trader refers to, that connects the average closing rates of the shares over a specific period. The longer the time, the more reliable is the information on the moving average. Using this indicator can help traders to identify the underlying movement of the price, as in share market, prices don’t move in just one direction. Share market, and therefore, the stock prices are extremely volatile. The moving average indicator smoothens out this volatility and enables the trader to get a clear understanding of the underlying trend with regards to the price movement.

2. Bollinger Bands:

This is another useful trading indicator. Experts say that this intraday trading indicator is a little more advanced than the moving average. This Bollinger Band refers to three lines on the stock chart —the moving average, an upper limit and a lower one. All these lines represent the deviation happening in the price of the stock, whether it is increasing or decreasing from its average price. This Intraday trading indicator allows traders to have a better understanding of the stock’s trading range.

3. Momentum Oscillators:

In the share market, one constant is the up and down movement of the stock prices. Often, the prices rise and fall so quickly that sometimes traders miss out on these changes. That’s where the Momentum Oscillator is beneficial. It helps traders determine whether the price of the stocks is going to move further up or down the price range

4. Relative Strength Index (RSI):

This is one of the most useful indicators that allows traders to compare the share price’s gains and losses. Once this information has been derived, it is formulated in an index form. The index helps traders narrow down the RSI score ranging between 0 and 100. When the price of the stock rises, the index increases and vice versa. When the RSI increases or decreases to a specified limit, it is an indicator to the trader that he must modify his trading strategy to make the most of the changing market trends.

If you’re an expert investor or have just started in the world of share markets, using Intraday trading indicators can help you avert risk, understand what’s driving the market and make bets that will be to your advantage. At Angel One, we offer detailed charts and reports containing these indicators. Visit our website to know more about these indicators and get started with your trading journey!