28/01/2023
Interested in day-trading but don't know what indicators to use? Our short guide of our favorite day trading indicators might help!
Before we get into the meat of our list, here is a quick spiritual thought, as per tradition. Spiritual Thought:
We all love indicators. They give us guidance during our trades, and valuable insights into the landscape of the market. Many people, however, do not realize that God provides us with the ability to access similar guidance — almost like an indicator for your life. However, the indicator he gives us access to — the Holy Ghost — does not face the same limitations that trading indicators do. We can use the Holy Ghost in all aspects of our life to help us navigate difficult times, provide us with peace and comfort, and also help us gain an eternal perspective of our lives that allows us to lead a more joyful life — even if you have a bad trading day. If you want to learn more about how to access the Holy Ghost in your life, shoot any of the admins a message and we can help!
Now onto our top 3 indicators!
1. SMI (Stochastic Momentum Index)
The Stochastic Momentum Index is the more reliable, older brother of the Stochastic Ocscillator. It married at 26, asked the Father for his daughter's hand in marriage, has a credit score of 720, and takes the kids to their football games every Saturday. Essentially, it takes a significant amount of the guesswork out of momentum based trades, without the unpredictibility of other similar indicators. The SMI index gives early indications of possible momentum shifts at critical points so that you can make your trades with clear entry and exit points.
2. TTM Squeeze
Although the TMM Squeeze indicator is not the simplest addition to a begginer day-trader's tool box, it certainly is a valuable one. It combines aspects of both volatility and momentum indicators, providing a clear squeeze marker that fires when volatility increases and the Bollinger Bands expand until they are outside of the Keltner Channels. This indicator provides clear entry and exit points for long and short positions, and can be used in wide variety of time frames.
3. VWAP (Volume Weighted Average Price).
Being able to quickly evaluate whether a ticker is trading outside of typical intraday market value is extremely important. The VWAP indicator allows you to do this by letting you know whether a security is undervalued or overvalued based of trading volume, price-action, and total-dollar value of trades within a given period of time. It acts as a great tool to quickly confirm your decision to go long or short on a position.