Indicators for Intraday Trading

Intraday or day trading is getting very common in the stock market. Yet, without having proper knowledge and tips related to it, intraday trading is not going to be profitable at all for newbies as well as experienced traders.

The crucial thing to understand about intraday trading is that you cannot follow or apply the same strategies every time before starting your trading day. If you want to maximize your gains, you should have every essential information related to the market and its working. To make it a bit easier for traders, there is a set of indicators that can be used by traders to gain higher returns within a day.

Insights a Trader Can Get From Intraday Trading Indicators


Intraday trading indicators can help a lot in making up your mind on which securities one should invest in and when to sell them. Here are some most important benefits of these indicators:

  • Profit potential from securities due to volatile market
  • Path of trend in
  • Momentum prevailing in the market
  • The popularity of securities through their volume estimation

All of the above-mentioned information that a trader can get from indicators of day trading can prove to be very beneficial for them.

These intraday trading indicators are basically tools that can be used with personalized techniques of traders to maximize gains. Let’s have a look at the best indicator for intraday trading.

Best Indicators for Intraday Trading

1.       Moving Averages

Daily moving averages(DMA) are the most popular and commonly used indicators in intraday trading. This indicator tool is a must-have for all traders because this indicator shows the average closing value of stocks over a certain period on stock graphs. Traders try to comprehend the movement of the price using this indicator, as stock prices never go in the same direction. The reliability of this indicator increases with the increase in the period.

2.       Bollinger Bands

Bollinger bands are an advanced version of moving averages. This indicator shows the maximum deviation a stock price can take by considering the past movements. It usually shows three lines on stock charts; the middle one is moving average, the upper one for the highest price deviation, and the lower for the lowest deviation. These Bollinger bands give traders a rough idea of the range of stock prices.

3.       Momentum Oscillators

The stock prices are not constant; they change from time to time. Intraday traders always look for the lowest(to buy) or highest(to sell) value of stocks. But, they may miss it because of the volatile nature of the stock market. Here, momentum oscillators play a very crucial role. It displays the record high and low prices of the stocks. This helps traders in making a quick decision.

4.       Relative Strength Index (RSI)

The relative strength index is one of the best indicators for intraday trading. RSI calculates the actual gain or loss coming from stock and converts it into a more precise and presentable form, i.e., index. This index helps traders formulate their strategies by understanding whether the stock is profitable or not.

The above-mentioned day trading indicators can help traders a lot in the formulation of strategies. Yet many traders don’t know about the best time frame for day trading,and they trade for the whole day and gain nothing or even make losses. To make good returns, you should know about the time when you need to buy and sell stocks. Let’s understand this in brief.

Best Time Frame for Intraday Trading

The market opens every day at 9:15 AM and closes at 3:30 PM. A trader chooses the most suitable and profitable time to enter the market and exit. A trader shouldn’t waste a whole day in it. To make higher gains, traders should take a time frame of 15-30 minutes. However, keeping other factors in mind, this can change as well. Many experts say that as being an intraday trader, one should enter and exit the market as soon as possible to avoid any kind of unpredictable events.


Intraday indicators can assist a lot in forming strategic moves for buying and selling stocks to maximize the gains. However, a trader can not make good profits if they don’t know about the best time frame to trade intraday trading.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.