Traders who have knowledge of technical’s pattern, price action, for them Intraday trading is the single alternative allowing them to actively trade the stock market. Intraday trading requires specific software that may be used to undertake technical analysis to determine the best prices for buying and selling stocks. TradingView is the only charting platform that can be used for both intraday and short term trading.
TradingView houses variety of technical indicators that might assist a trader make decisions with proper basis in intraday trading. These indications will not only assist in determining whether the security is prices at the appropriate levels to purchase, where to begin the trade position, and when to sell and book gains. Today we'll talk about the finest indicators for intraday trading in TradingView.
Also Read: How to Do Intraday Trading: Best Stocks, Charts & Strategies
Top 5 Best TradingView Indicators for Day Trading
To get the true depiction of price action, traders usually use candlestick chart. There are number of technical indicators that a trader can apply on charts with complement to candlesticks in TradingView to get better vision of movement. Though trader can use other types of charts in TradingView, the most popular technical indicators work best on candlestick charts.
There are beyond your imagination technical indicators in TradingView. Some are available to everyone and others are reserved for specific members, but below mentioned are you can find the best indicators for day trading in TradingView that are not only easy to apply, accessible to all but also give the most accurate indication if applied and interpreted correctly. So, let's find out what the top indicators are that you can use for intraday trading in TradingView.
#1 RSI in TradingView for Intraday Trading
RSI or Relative Strength Index is one of the best and widely used technical indicators in the TradingView that you can use for intraday trading or any other time frame. RSI can show you the current strength or magnitude of recent changes in the prices of the stock. The index number swings between 0 to 100 levels, and when it moves under 30, it shows the stock price is trading in the overselling zone. On the other hand, when the RSI is moving above the 70, it means the security price is trading in the overbought zone.
If you want to use this indicator for intraday trading, you can see the trend reversal or a pullback from the overselling zone. You can create a long position or see some profit booking to occur in the stock. For short-selling or booking your profit in already-bought stock, you can consider the RSI moving above 70 levels.
For intraday trading, you can use the RSI as a buying opportunity when it breaks the overselling zone and that 30 from where there is a possibility of a rebound in the stock price movement. On the other hand, the overbought opportunity is visible when RSI trades above 70 giving the signal of the trend reversal to a downtrend from an uptrend.
#2 MACD in TradingView for Intraday Trading
MACD of Moving Average Convergence Divergence is another technical indicator that trader can use for intraday trading. When you apply MACD indicator, you will notice that it is a kind of oscillator that have three lines; the MACD line, the signal line and the histogram and the interaction of these lines gives the signal of buying and selling opportunity with the strength of the signal.
The MACD line is based on the exponential moving average that can give more insight into the upcoming expected movement in the market or in the stock price. The MACD line moves around the centre line and the convergence of these lines gives the signal of buying and selling. And because of this, this indicator is called the convergence and divergence of the moving averages.
To use the MACD in day trading keep an eye on these lines and when MACD lines go above the zero line that shows the price is on a downward trend and at this level, you can sell the stock. However, the buy signal happens when the MACD line crosses the signal line and the sell signal is evident when the MACD line crosses below the signal line. And to get better use of MACD in day trading also apply the other popular indicators on TradingView.
Also Read: How to Use Moving Averages in Trading & Convergence Divergence
#3 Volume Indicators in TradingView for Intraday Trading
In TradingView you can use various volume indicators that can give you useful signals for creating the trade positions in the stock as per the favourable and unfavourable activities in the volume of trades.The Volume-Weighted Average Price (VWAP), is one of the best volume indicators that determine the average price of stock over some time while giving the weightage against the cumulative volume of the stock price throughout the phase.
Also Read: Importance of Volume in Technical Analysis: Use & Role in Trading
To calculate the VWAP you can add the total value of trades during that period and divide the same by the total number of shares traded. The accuracy of data is high here compared to the regular average price. In algo-trading, VWAP works as an execution strategy that helps traders achieve a better average pricing of the stock with substantial share volume during the specific duration.
Also Read: Best Volume Indicators for Day Trading & How to Use for Intraday
Overall the main purpose of using the VWAPfor intraday trading is to evaluate the liquidity in the market with higher values signifying higher activity in buying and selling in the stock, while lower value in the VWAP means the liquidity is low in the market or the individual stock price.
Also Read: How to Add, Read & Use Best Volume Indicator in TradingView
When the current price of the stock is trading below the VWAP line it gives a positive signal to buy the stock, while you can get better results than the average price. On the other hand, when the stock price is above the VWAP line, you can consider this the right signal to sell the stock because the stock price might be greater than the average price. You can get more accurate results if you use the VWAP signals with the MACD line to get better results.
#4 Bollinger Bands in TradingView for Intraday Trading
Bollinger Bands is one of the very useful indicators for day trading that helps to know the level of volatility and in accordance with the same using the bands to judge the potential shift in the market. The Bollinger bands are flexible bands that keep itself adjusting as per the volatility in the market. The band expands when volatility in the market or stock price trading is high, while contracts when the volatility is less in the underlying security.
Also Read: Bollinger Bands: Indicator, Strategy, Settings& Analysis
The Bollinger band consists of three key elements a 20-day simple moving average that is also called the central moving average, secondly an upper band that you can calculate by adding twice the standard deviation of stock price to the moving average. And finally, the lower band is computed by deducting twice the standard deviation of the price from the moving average.
Also Read: 7 Biggest Mistakes To Avoid While Doing Intraday Trading
To benefit from the Bollinger band for intraday trading in TradingView, you must first monitor market volatility. When Bollinger bands move in a small range, it indicates little market volatility and generates a buy and sell signal. You may exit the stock or underlying security when the price reverses and crosses the middle line, also known as dynamic resistance, making it simpler to trade in a variety of market volatility situations.
#5 Supertrend in TradingView for Intraday Trading
Supertrend is one of most powerful indicators for intraday trading in TradingView's , allowing traders to identify market trends and set entry and exit points for intraday or short-term trading in combination to other indicator. Virtual representation of supertrend indicator is like a staircase shape pattern above or below the price of security, which is plotted depending upon market volatility of security. When the price crosses above or below the indicator line,, the trend may change.
Keep an eye on the supertrend line while using it for intraday trading. If the price of a stock or market index rises above the supertrend line, it is a buy signal, indicating an upward trend. On the other hand, if the stock price goes below the super trend line, it may represent a chance to sell the underlying assets, as the downtrend indication is visible there. You may also use this indicator to establish a stop loss.
Also Read: How to Use Supertrend Indicator in TradingView: Settings & Strategy
One of the best things with the spuertrend is it can adjust line as per the market conditions giving an active view of the latest trend in the market. If you are looking for straightforward trend insights supertrend could be one of the best indicators for intraday trading. But keep one thing in mind, as per the market experts supertrend indicator works best when the market moves at a fast pace or in a particular direction, it is not suitable for sideways or slow-moving market conditions.
Summing-up
Apart from these top technical indicators, there are various other popular technical indicators you can use for intraday trading. But these are one of the best ones that you can easily find and plot in the TradingView with options to customize the chart and indicators as per the needs.
Also Read: Top 5 Best Technical Indicators for Intraday or Day Trading
However, intraday trading could be risky, especially for beginners or new traders, hence it is highly recommended to use the combination of various other indicators to identify the exact trend and buying or selling signal in the underlying security. For intraday trading not only the technical indicators but also need to pick the right stock and create the position with the right strategy.
Also Read: How to Select Stocks for Intraday: 10 Tips to Pick Best Stocks
To make your intraday trading successful you need to set up TradingView chartssettings with technical analysis of the stock price or market index.And to utilize the TradingView you need market experts who can help you to execute the trade with the right strategy. Moneysukh can provide you such facilities with the right trading platform for intraday trading at reasonable charges.
Also Read: How to Add or Remove, Hide & Save Indicators in TradingView
Moneysukh is one of the best discount brokers in India and offers the best trading platform for trading and investing in equities, commodities and currency markets.It also provides an online trading application with web page accessibility to trade using various algorithms like Traderadar and TradingView charting system. To enjoy such facilities apply here and open a trading account and demat account with the best features at the lowest brokerage charges in India.
Also Read: Key Points to Consider While Opening a Trading Account Online
