Day Trading Indicators are the most confusing thing about the entire day trading industry. Many people, including day trading companies, try to confuse newbies with fancy colors and supposed “patented” indicators that claim to be the holy grail. As I talked about in my “truth about day trading companies” post, that could be farther from the truth. Every day trading indicator out there is a simple indicator you can find for free on the internet.
You don’t need any fancy colors or a ton of indicators to make money
If you don’t believe me have a look at my day trading strategy and the income statements from my group of traders on the site. Pictures are worth a thousand words. The problem with day trading isn’t indicators, its finding someone who is honest and trustworthy that won’t charge you $5,000 for training. Below is a list of the most popular indicators that people use to make money in the stock market.
Day Trading Charts
There are a ton of different kinds of charts that you can use and choosing the right one is difficult. With so many options how are you possibly supposed to know what to use? I only use three indicators in my day trading strategy and I make it a point to keep it simple. I prefer to use tick charts.
Click here to learn about different kinds of charts
You need something to put your indicators on, in my industry the two options are either NinjaTrader or Tradestation. When I first started day trading the only real option was Tradestation, now NinjaTrader is the clear leader. Click on the link below to see a comparison of the two platforms:
MACD BB Lines
The are different versions of the MACD BB lines indicator but the basic premise is to identify momentum behind the market. You can also use the MACD BB’s as support and resistance to identify potential pivot points in the market. This helps with both getting in and out of the market.
Click here for more information on MACD BB’s
macd lines
Keltner Channel Bands
The Keltner Channel Bands allow a trade to “frame price”. The reason why you see this specific indicator to to be able to know where the market is heading. It puts visual picture of where we can get in and out of the market.
Click here for more information on Keltner Channel Bands
Fibonacci Indicators (Fibonacci Day Trading Software)
There is a lot of information on the internet about Fibonacci Indicators and how Fibonacci principles are applied to the stock market. These techniques can be incredibly effective when applied correctly. There are also a slew of misconceptions that to be clarified, the first would be you don’t have to pay for any Fibonacci Indicators.
Click here for more information about Fibonacci Indicators
Fibonacci indicators
Bar Patterns
We can identify momentum in the stock market in many different ways. Using the actual bar themselves is a very effective way of being able to identify strength, reversals, and even slowdowns. I used to be a big proponent of using bar patterns heavily for entries into trades but found other techniques to be more effective.
More coming soon on bar patterns!
Moving Averages
Moving averages seem to be in every single day trader’s arsenal. If there is one way to tell the momentum of the market, moving averages tell the whole story. Any trader that has used technical analysis to make money in the market uses some kind of moving average. They can call it a unique name but more likely than not what you are looking at is a moving average.