Intraday Trading Indicators: Choosing the Right Tools for Success

Tips for Successful Trading

A trading indicator provides you with the expected future price of a given stock or index. They appear as overlays or extensions to the price chart, offering further details about the price. You should combine a candlestick with at least two or three indicators for day trading. This is because several technical indicators suggest distinct things.

To make a successful trade, your objective should be to spot trends, breakouts, or mean reversion. This article outlines the most effective indicators for spotting these trading opportunities. However, let’s first understand what is intraday trading.

What is Intraday Trading

Day trading, or intraday trading, is the practice of buying and selling equities on the same day. The stock market is prone to volatility, which causes daily stock price fluctuations.. The idea here is to profit from these price differences. The price variations may be small. However, traders can generate profits if they trade effectively. You must take advantage of shifting prices and complete a trade before the market closes if you want to engage in intraday trading.

Best Indicators for Intraday Trading

Here are the useful indicators for day trading.

Bollinger Bands

Bollinger bands draw attention to a region surrounding a stock’s average price. The area is the range within which the prices are predicted to fluctuate based on current and historical volatility. The top, middle, and lower bands of the Bollinger Bands represent the predicted range of price movement. The price crosses the middle band from below, indicating a buy signal. This region is the “buy zone”.

The “sale zone” is the region between the middle and lower bands. A price crossing above the average indicates a sell signal. When there is more volatility, the bars are wider. When there is less volatility, the bars are narrower. The price is usually anticipated to return in the other direction from the margins of the upper and lower bands, but occasionally, it may break out or fall from these points too.

Volume Bars

The quantity of shares traded within the specified time frame is the volume. Every candle, for instance, on a 15-minute chart indicates a price change over that duration. Each associated volume bar represents the number of shares traded within a 15-minute interval. A volume bar’s height that is higher than usual suggests that there has been an unexpected interest in the stock. This might have led to a price increase or decrease.

There may be a significant move if there is substantial price movement. Unusual price surges accompanied by low volume indicate unstable trends. When spotting trading opportunities, a single high-volume bar amidst low-volume bars might not be significant for any meaningful analysis. However, a collection of bars with significant volume would indicate intense interest in the stock and perhaps the beginning of a major trend.

Relative Strength Index (RSI)

Relative Strength Index (RSI) is an indicator that gauges the strength of both recent and past price moves. The RSI aids in determining whether the market is overbought or oversold. When the RSI exceeds 70, the market is overbought and a price decline may be imminent. Similarly, an RSI reading below 30 indicates an oversold market and a likely price increase.

When the RSI and price are moving against each other, this is known as divergence and suggests that the price will soon start to move in the RSI’s direction again.

In intraday trading, the RSI may be in an oversold zone, and a bullish price bar may be building. This might be a good entry point for a long trade (buy). When the RSI produces a bearish price bar and is in an overbought zone, it might be a good time to enter a short trade. RSI should, however, be used in conjunction with other indicators, such as moving averages or MACD. It is not a stand-alone indicator.

Average Directional Index  (ADX)

One of the most used momentum indicators for determining a trend’s strength is the Average Directional Index (ADX). If you believe a stock is trending, you may select the movement using the ADX indicator. A trend is present when the ADX number is over 25 and absent when it is below 25.

For instance, you can short the stock if the trend is strengthening and is in a downward direction. Waiting for price reversal indications if the ADX is less than 25 is advisable.

Relative Volatility Index (RVI)

The Relative Volatility Index (RVI) shows the direction of price volatility by calculating the standard deviation of high and low prices over a specific period. An RVI above 50 suggests a possible sell signal, while one below 50 indicates a potential buy signal. Moreover, RVI readings between 30 and 20 are considered oversold, indicating buy signals. In contrast, readings between 70 and 80 are considered overbought, meaning sell signals.


The most accurate intraday trading indicators include RSI, Moving Averages, Volumes, and Oscillators. Additionally, you may combine several indicators to increase the precision and accuracy of your research. However, charting, understanding, and analysing the technical indications is not simple. You must understand the parameters employed in these specialized tools and know how to create or plot them on a stock price chart or trend line.

You may get assistance from specialists who are experienced in using technical indicators. Moreover, you should trade on a good trading app like BlinkX, which offers detailed analysis reports and trading indicators. Trading on such platforms can assist you a lot.

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