I want to day trade, which technical analysis indicators work best.
The choice of the best combination of indicators for intraday trading can vary depending on the individual trader's preferences and the specific market conditions. However, here's a popular combination of indicators that can be used for signal generation and confirmation in intraday trading:
Moving Average (MA):
Use a short-term MA (e.g., 9-period or 20-period) and a longer-term MA (e.g., 50-period or 200-period) to identify trends and potential entry points.
Generate signals when the shorter-term MA crosses above or below the longer-term MA, indicating a change in trend direction.
Relative Strength Index (RSI):
Use the RSI to identify overbought and oversold conditions in the market.
Generate signals when the RSI crosses above or below certain thresholds (e.g., 70 for overbought and 30 for oversold), indicating potential reversal or continuation opportunities.
Volume Weighted Average Price (VWAP):
The VWAP is a popular intraday indicator that calculates the average price weighted by volume.
Use the VWAP to identify the average price at which most trading activity has occurred during the day.
Generate signals when the price crosses above or below the VWAP, indicating a potential change in market sentiment.
Bollinger Bands:
Bollinger Bands consist of a middle band (typically a moving average) and an upper and lower band representing standard deviations.
Use Bollinger Bands to identify periods of low volatility followed by potential breakouts.
Generate signals when the price breaks above the upper band or below the lower band, indicating potential trend reversals or continuation opportunities.
MACD (Moving Average Convergence Divergence):
The MACD combines moving averages with a signal line and a histogram.
Use the MACD line crossing above or below the signal line to generate signals for potential trend reversals or continuations.
Additionally, monitor the MACD histogram for indications of increasing or decreasing momentum.
