The Best Indicators For Day Trading Stocks, Crypto & Forex

best day trading indicators

Trading indicators are meant to help you understand the markets and make better trading decisions. But which indicators give the best results? Well, there are free indicators as well as paid ones, so we made a list of our favorites for both types. All of the listed indicators work for stocks, options, crypto, futures and forex. These technical indicators are used for various styles of trading such as trend following, scalping, swing trading, range trading, news trading and various other styles of day trading.

The Best Premium Indicators For Day Trading

Supply And Demand

Knowing where price will reverse is extremely valuable in trading. It helps you time your entries better, find very likely take profit targets and have more confidence in your trades. Supply And Demand indicator is an incredible tool that marks out these supply and demand levels for you, without lifting a finger. It uses volume spikes, country trading sessions, higher timeframe price action candles and previous VWAP close values to mark out these important levels. Wait for price to struggle at these levels by looking for big wicks and reversal candles and then take your position. You can increase your confluence even more by waiting for a signal from the Buy Sell Indicator near the supply and demand levels.

Buy Sell Indicator

Price action is king in trading and 90% of indicators are just different calculations of price movement. This buy sell indicator uses price action as a filter by comparing the current candlestick patterns to the previous candle patterns and then uses a combination of many different custom calculations and parameters to decide if the movement is strong enough to give a buy or sell signal. It paints the candles according to the price action and then shows arrows for signals. The candle coloring helps you stay in positions longer and reduces anxiety while watching the candles bounce back and forth. This is the best day trading indicator that I have ever used and gives incredibly accurate trading signals on every market and time frame. It includes and automatic trailing stop loss and 3 take profit levels for a truly all in one buy sell indicator.

Buy Sell Signal Scanner

Buy sell signal scanner uses the same awesome formula from the buy sell indicator listed above, but instead of giving signals on the chart, it scans higher timeframes or other markets and tells you if they are currently in a long or short signal. This is a great way to see what multiple higher timeframes are doing so you can trade with the trend, or you can set it to scan other markets and only trade the direction that the entire market sector is trending. Confluence is how you are going to up your win rate and this buy sell signal scanner is the perfect way to add some extra confluence to your trading decisions.

Auto Support & Resistance Volume Based + Scanner

Volume spikes show you where the market makers are placing their orders, but having to do that manually by checking your volume profile is very time consuming and doesn’t happen automatically. This volume based support & resistance tracks the closing price on the candle where the volume spike came in and marks it on the chart for you. Then you have automatically generated lines on your chart where price will likely bounce. The lines will paint red if above the price, meaning it is resistance currently and paint green as support when price is above the level. When price action has made an extended move in one direction and then the support & resistance lines change to the current candle, look for price to react to that level and trade in that direction. These are excellent ways to identify great trading opportunities where high volume is confirming the reversal.

Trend Friend Swing Trade & Scalp Signals

Trend Friend Swing Trade & Scalp Signals uses a massive amount of calculations and parameters to determine if a bullish signal or bearish signal should be given on any market and timeframe. It also includes a trend indicator that determines the trend direction using the VWMA 100 and VWMA 500 so you can identify strong trends and trade in the direction of the trend or trade bounces off of those moving averages. It also includes low volume warnings, choppy price action warnings and a risk level detector for each signals, letting your know if the current signal is low, medium or high risk according to whether the signal is in the direction of the trend or not. It is also fully customizable so you can tailor it to your specific style of trading.

Scalper Ribbon

Scalper ribbon is a combination of all the best trading oscillators with a little special sauce to make it perform better. Trading oscillators are some of the most commonly used indicators, but everyone uses a different one, so the goal with this indicator is to combine all of those oscillators into one master oscillator that signals price swings early. It paints red or green depending on whether the price action should move up or down. It reacts quickly, holds positions until they are exhausted and can be customized to work with your specific trading style. Use this scalper ribbon for extra confluence when deciding to take a trade or not. It is a perfect compliment to the buy sell indicator posted above.

The Best Free Indicators For Day Trading

Auto Support & Resistance With Wick Signals & Percentage Gaps

Support & Resistance is one of the best ways to find highly probable reversal areas so you can place your entries and exits at those levels. But finding these areas can be tough for a new trader. So this auto support & resistance indicator does all of the heavy lifting for you! All you need to do is figure out the normal percentage deviations of the ticker you are trading and set that number in the percentage deviation setting. Then it will populate all of the levels for you as well as other important levels such as the daily high & low, previous day’s open, high, low & close, the average price zone and the control zone. When a candle produces a wick off of these levels, an arrow will be shown, giving you the signal to enter that trade.

RSI Scalping & Swing Signals With Alerts

Relative Strength Index is a calculation that compares the candles over a certain length of time(as defined in your settings) and gives you a line that oscillates from 0 to 100. When the RSI is trending above 50, the market is bullish and should go up. When the RSI is trending below 50, the market is bearish and should go down. It will also show you oversold levels and overbought levels, which are above 80 for overbought and below 20 for oversold. This RSI scalping & swing signals smooths the RSI out using an SMA and RMA to form a ribbon. This ribbon will paint green when it is trending upwards and red when trending downwards, quickly showing you the direction you should be trading. It also includes a long moving average to help you spot major reversals for those of you that aren’t scalping. It will also show red or green dots when the RSI ribbon crosses the long moving average for signals. Trade these signals when the rest of your technical analysis lines up.

Volume Spikes & Growing Volume Signals With Alerts & Scanner

Volume spikes are a crucial part of day trading because they show you where the market makers are placing their bets. When high volume comes in, you can expect price to reverse shortly after that. This volume spike indicator shows you volume spikes by coloring the background of the chart in green or red depending on whether the buy or sell pressure is stronger. When the volume SMA is growing over a period of time, it will also paint the background green or red so you can identify what the big players are doing. It also includes a scanner that will find and notify you of volume spikes and growing volume on markets other than the one you are watching on your chart so you know when to take a look at other potential trades. Use the volume signals as confirmation for your trades when they line up with your support & resistance levels.

Auto Fibonacci From Previous High & Low With Percentages & Alerts

Fibonacci retracements and extensions are a great way to find potential reversal areas. This indicator automatically draws fibonacci levels on your chart based off of the previous session’s high and low. You can set it to use the previous daily, weekly, monthly or even yearly high and low for extra levels if you choose. Using these retracement levels also gives you an idea of how strong a continuation move might be by looking at the percentage level that it bounces off of. For instance in an uptrend, if the price stays above the 50% retracement level, then it is still bullish and will likely see another move up. This indicator also tells you how far of a percentage gap there is between the current price and then next fibonacci level so you can gauge if it is a big enough reward for your risk.

Market Sector Scanner/Screener With MOM + RSI + MFI + DMI + MACD

Market scanners are amazing tools that show you what multiple markets are currently doing without switching charts. This scanner analyzes momentum, relative strength index, money flow index, directional movement index and moving average convergence/divergence. When each indicator is bullish or bearish, the color of the indicator will change so you can quickly see if all 5 indicators are bullish or bearish at a glance. This scanner is very useful because you can set up to 8 tickers in the scanner. If you set these to other markets that move very similarly to the ticker you are trading or set half to tickers that move the opposite of what you are trading, then you can get extra confirmation that an entire sector is moving up or down and trade in that direction.

Benefits Of Using Intraday Trading Indicators

In trading, you need an edge to be profitable and indicators are what give you that edge(when done right). A good combination of leading indicators can help you understand the markets better, find areas where price will likely bounce and help you make much better trading decisions. Making better trades mean making more profits and less losses, which is always the goal. We recommend using a combination of indicators for the best results. Here is what we think is your best setup: Buy Sell Indicator for signals, Buy Sell Signal Scanner for trend identification & confluence, and Auto Support & Resistance Volume Based for finding reversal areas. Stick to taking trades at your support & resistance levels and use the buy sell indicator for confirming signals.

Frequently Asked Questions

What Is Day Trading?

Day trading is a form of investing where traders make multiple trades within a single day using various types of indicators to make decisions about when to buy and sell stocks, options, futures contracts, cryptocurrency or foreign exchange.

What Are Technical Indicators?

Technical indicators are mathematical calculations based on price, trading volume, and other market data. They help traders identify the current trends, predict future prices, and determine the current market sentiment. Technical indicators can be used in a variety of ways by day traders. Some use them to identify entry and exit points for trades, while others rely on them to determine which assets are most likely to move in a certain direction. Technical indicators are used to analyze stock markets, crypto markets, futures markets and forex markets because they all use the same type of data which is volume, open price, close price, high price and low price, but each indicator calculates this data differently. Some of the most popular indicators used by day traders include moving averages, MACD (Moving Average Convergence Divergence), RSI (Relative Strength Index), Momentum Indicators, Bollinger Bands, Stochastic Oscillator, On-Balance Volume, Standard Deviations, Volume Indicators, Volatility Indicators and Fibonacci Retracements.

What's The Difference Between Scalping And Swing Trading?

Scalping is a trading technique where you get in and out of positions quickly, typically using the 1 minute chart. Scalpers usually take profit as soon as a move starts to show signs of reversal, instead of waiting for patterns to form and risking the trade turning around. Swing trading can be done on any chart timeframe, but is typically done with the 15 minute to 1 day chart timeframes. This type of trading usually consists of taking trades that last for hours to days and sometimes longer.

Can I Use The Same Indicators For Trading Stocks, Crypto & Forex?

In most instances, yes you can use the same indicators for trading stocks, crypto and forex. But there are some indicators that are designed to be used on specific markets because they use data that is specific to that type of market. To avoid misusing these types of indicators, make sure you fully read the description of any indicator you plan on using before you implement it into your day trading strategy. Our technical indicators are designed to work with specifically with the following markets:

  • Stock Market Spot & Margin Trading
  • Foreign Exchange Market Contract Trading
  • Futures Exchange Market Trading
  • Option Trading
  • Cryptocurrency Spot & Margin Trading

How Do I Avoid False Signals When Using Indicators?

False signals are going to happen with every indicator, no matter what. There is no 100% correct trading system because there are people and algorithms trading on every market and no indicator can perfectly predict what these traders are going to do correctly all the time, indicators can only make educated guesses based on the code they run on. So to avoid false signals when engaging with electronic trading platforms, you need a lot of time studying the price charts and understanding market structure before you’ll be able to fully avoid false signals, and even then you will still take bad signals every now and then. That’s just part of trading. Even the hedge funds don’t have great win rates and they have way more resources available to them than us retail traders.

How Can I Backtest My Trading Strategy?

You can backtest your strategy for free on Tradingview using their strategy tester. However, unless you are using a very common investment strategy or know how to write pine script, you will be limited to backtesting the strategies that are available to the public on Tradingview. You can backtest a simple MACD, RSI, MFI or Stochastic RSI strategy for free with our 3Commas Bot DCA Backtester. Otherwise, you’ll need to learn how to write pine script if you want to code up your own strategy with custom parameters.

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