Everything you need to know about the financial world, the history, the workings and the latest developments made available at one stop

An all-inclusive

Guide to


On latest


To advanced

Best Indicators for Day Trading

Numerous indicators are available in technical analysis, however, not all of them are appropriate for day trading. Some technical indicators are better suited for traders who want to close their positions in a single day. Here are a few indicators that could be best suited for day traders.

  • Average Directional Index

The ADX indicator aids in identifying the strength of a trend. The ADX indicator indicates if the current trend has the ability to continue upwards or downwards. In most cases, an ADX number of less than 25 suggests a very weak trend, while a value of more than 75 indicates a very significant trend. For filtering spurious signals, ADX is typically used in conjunction with other trend-following indicators such as SuperTrend.

  • Stochastics

Stochastic is a popular momentum indicator that may be used for both intraday and swing trading. When undertaking intraday trading, it’s critical to consider the currency’s momentum.

  • Donchian Channel

During day trading, it’s also important to look at volatility indicators to see if the volatility is high or low. In day trading, the Donchian channel could be used for this. It’s mainly composed of the Highest High and Lowest Low for a specific period of time.

  • SuperTrend

The SuperTrend indicator can be used as a trading indicator for intraday trading. This indicator is drawn on a price chart, and its position in relation to price could be used to identify the current trend. It’s a pretty straightforward indicator with only two parameters: period and multiplier.

  • On-Balance Volume

On Balance Volume (OBV) is a common volume indicator for predicting price movement that monitors the absolute volume change in forex trading. Because of institutional investors’ active trades, most traders assume volume drives pricing. As a result, the On Balance Volume indicator aids in the tracking of smart money into the market while also indicating future price direction.

Risk Warning

 This material is considered a marketing communication and does not contain, and should not be construed as containing, investment advice or an investment recommendation or, an offer of or solicitation for any transactions in financial instruments. Past performance is not a guarantee of or prediction of future performance. Trust Capital TC Ltd does not take into account your personal investment objectives or financial situation. Trust Capital TC Ltd makes no representation and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast, or other information supplied by an employee of Trust Capital TC Ltd, a third party or otherwise.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 83.33% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Trust Capital TC does not offer Contracts for Difference to residents of certain jurisdictions including the USA, Iran, and North Korea. Please consider our “Risk Disclosure“.