Day Trading Indicators: The Basics

Facebook
Twitter
LinkedIn
Reddit
StumbleUpon

When just getting started with day trading, interpreting what an indicator means and which ones to utilize could quickly become overwhelming. To help, here is a brief look at the basics of some of the best indicators for day trading.

First, one of the most commonly seen indicators on a professional trader’s chart is moving average. This indicator assesses overall trend direction, which provides a foundation for the analysis. It can be used to evaluate potential support and resistance levels. There are two types of moving averages to utilize: the simple moving average (SMA) and exponential moving average (EMA).

Another frequently utilized indicator is the OBV, or on-balance volume indicator. It is used to measure the flow of volume — both positive and negative — in a security over time. Doing so helps verify the strength of the trend. It also serves to validate potential breakouts and breakdowns.

Last on our list is the very useful relative strength index, or RSI. Used to help gauge momentum and trend strength, this indicator plots recent price gains versus recent price losses in a range between zero and 100. Its most basic use is to signify an overbought or oversold condition for an asset.

These examples merely scratch the surface of the top indicators that traders should have in their toolkits. If you want to learn more, please see the accompanying resource From NinjaTrader for further information.

Top Trading Indicators Toolkit from NinjaTrader, a futures broker

Facebook
Twitter
LinkedIn
Reddit
StumbleUpon

Recent Posts

Advice

Three personal details you should never give over the phone

It’s becoming increasingly popular (and often necessary) to conduct important financial affairs over the phone in our fast-paced and ever-evolving society. While this offers plenty …

Read More →
The Future of Remote Work and Its Impact on Business
Business

The Future of Remote Work and Its Impact on Business

The COVID-19 pandemic accelerated a trend that was already gaining momentum—remote work. As businesses adapted to lockdowns and social distancing measures, remote work became a …

Read More →
Transforming Ideas into Successful Business Ventures
Business

Transforming Ideas into Successful Business Ventures

Every great business starts with a spark—an idea. This idea is often a solution to a common problem or a way to fulfill a need …

Read More →
The Intricacies of the Business Landscape
Business

The Intricacies of the Business Landscape

Business is the engine that drives the world’s economy, fostering innovation, creating jobs, and shaping societies. It encompasses a vast array of industries, from small …

Read More →
Business

Addressing Energy Waste In Commercial Buildings

As the energy shortage intensifies, prices will continue to rise and impact the bottom line of organizations large and small. To avoid financial setbacks — …

Read More →
Business

Tax-Reducing Tips For Medical Professionals

Working in healthcare can be very lucrative. Physicians especially have the potential to come into a lot of money as they work to save and …

Read More →