Best Technical Indicator for Day Trading? 👊

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What is the best indicator for day trading? PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE! Best indicator for intraday trading? Is it moving averages, stochastics, RSI…? This is my opinion of course and I will select just one indicator. For me it is the VWAP – volume weight average price. I think this is the best indicator for day trading. The VWAP is like a moving average but it is based on the volume traded. A regular moving average doesn’t take into account the volume. But if there is more volume done at a specific price level we need to give it more weighting…
Why is it the best indicator for day trading? On a trending day you are likely to get a trending VWAP… assuming a strong uptrend day as price starts to come down the very first touch (test) of the VWAP you will get a bounce. In other words it acts as support in an uptrend and the reason for this is that many algos are looking at this and this is considered a value area. I’ve made some good trades basing myself on this.
Another way to use VWAP – if a market is swing trading the VWAP will look a bit like a straight line. What you can do is to market the distance between the high and the VWAP – very often if we are in a rotation environment we can do 75 pips to the downside… I don’t know exactly why but I suspect its again these mean reversion algos.

Related videos:
How to Use Volume (VWAP) to Improve your Trading 📈
https://www.youtube.com/watch?v=Bun01FUhDS4
Reversion Trading Strategy: Using VWAP to Guide Trade Entries in Range Bound Markets
https://www.youtube.com/watch?v=tgjoqK4DlFc

14 COMMENTS

  1. Hello! My question is: What do you think the best technical indicator for swing trading is? Cheers!

  2. looking at it, seems to me vwma is better, but only just started to have a look, so… Anyway interesting, thanks..

  3. If you look at this chart, you will certainly know which are the best indicators to make money. In fact, there are many! The price patterns indicate three bottoms! Buyers accumulate strengths at the bottom, RSI and MACD bottom out and rise. Volume of trading of yesterday is very big. The price has a big sunlight candle, and breaks above the Bollinger Band. You need to look at many indicators. There is also one thing which causes the sudden surge, which is not revealed by the technical indicators, i.e. the big I Banks released reports to buy this stock! In conclusion,
    the traders will need to look at too many things before making money (http://www.aastocks.com/tc/stock/DetailChart.aspx?&symbol=01972)

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