Indicator is one of the most important words in the day trading vocabulary, The easy way to say it – indicators literally indicate when we get in and out of trades.
The hard way to say it – there are thousands of indicators that are out there. And on top of that, thousands more that are made into software and sold by experts, academies and software companies. They all claim they have the fountain of riches if you simply get their indicator(s).
One thing for sure, once you have found the indicators that work for you – remember if they aren’t free there is always a catch.
So how does one decide on which indicators to work with.
In my experience, the less, the better.
There are very few pro traders that actually trade strictly on price action. It’s difficult to fully understand, mainly due to ‘where to enter’. They also started with indicators.
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The most popular and widely used are moving average indicators. And even these come in all shapes and sizes.
MACD’s (moving average convergence divergence) slightly different from the moving average (it’s on a separate part of the chart), these show the strength in markets if they are going up or down (this is the super easy layman explanation).
Since day trading is a skill, a profession, I do not recommend simply jumping in. To be good at it, you will need to take classes. Find the right academy to work with.
Once you have chosen a reputable academy, they will show you the indicators they use. Again, if they charge you for them or say that once you are done with their classes have to continue paying for the indicators, that is a scammy place, and you need to beware.
However, there are many good academies that are truly there to teach, and they will always have their method.
Remember this, you will not be able to trade without indicators, so my strong suggestion to research the best ones for you, but truly going with a school or mentoring someone’s style is really one of the few ways to become successful at it.
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If you want to learn more about my journey and how I started day trading you can read it here or you can watch on my YouTube channel.
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So if you have any questions you can always ask me at traderchick.com and if you want to learn day trading basics – check out MY Courses.