This website or its third-party tools use cookies which are necessary to its functioning and required to improve your experience. By clicking the consent button, you agree to allow the site to use, collect and/or store cookies.
Please click the consent button to view this website.
I accept
Deny cookies Go Back
  • Price Action Trading Course – 50% Off Ends 29 June
  • Trading Setups
  • Topics ↓
    • Price Action Trading
    • Day Trading
    • Trader Development
    • Site Map
  • Trading Resources
    • TSR Trading Guides
    • Trading Journal Software
    • Our Partners
    • Support Us
  • Member Login

Trading Setups Review

Trading Strategies, Guides, and Articles for Active Technical Traders

Forex Tester 5 - Software for traders by traders
You are here: Home / Trading Articles / What is the Best Day Trading Indicator?

What is the Best Day Trading Indicator?

By Galen Woods in Trading Articles on December 19, 2013

Best Day Trading IndicatorIf you are looking for the one Holy Grail day trading indicator in this article, you’re in for a rude shock.

I am not giving you any sure-win “buy when green arrow appears” indicator. But you may get more than that.

Best Day Trading Indicator?

Before you search for the best day trading indicator, answer the following questions.

What do you want to use the indicator for?

The choice of your day trading indicator depends on what you want to do with it.

If you want to find trends and trade them, moving averages are your best bet.

If you want to find momentum that has stalled and an impending reversal, an oscillator will have hints for you.

If you don’t understand what is trend and momentum, you should stop your search for the best day trading indicator, and learn more about technical analysis before continuing.

(Start with Technical Analysis: The Complete Resource for Financial Market Technicians.)

Do you know how to use the indicator?

Most free off-the-shelf trading indicators do not print green and red arrows to tell you when to buy and sell. Before you choose an indicator for day trading, you should learn how to use it.

Although your trading software will draw the indicator for you, learn how to build the indicator. You do not need to memorize the formula, but you need to understand what pieces of data goes inside it and its working logic.

Learn how to interpret the indicator and the impact of different settings.

An indicator is a tool. You must know how to hold it and how to wield it. Don’t hold the knife by its blade without realizing.

Why does the indicator work/fail?

Indicators are fallible.

Actually, that’s an understatement. We don’t really call things that can bankrupt us overnight “fallible”. And indicators will, if you use them mindlessly.

Understand the drawback of your chosen day trading indicator. Moving averages lag and oscillators can stay oversold/overbought for eons.

You will find improved moving averages that cut the lag. You will learn to find bullish divergences instead of just buying when the oscillator is in the oversold region.

However, none of these is the panacea and every indicator has its drawbacks. (Even those that cost $999/year.)

What is the best day trading indicator for you?

The questions above belabor the same point. You decide what is the best day trading indicator.

With your demands, skills, and trading experience, you will find the day trading indicator best suited for you.

Stay open-minded because almost all trading indicators are suitable for day trading with the right settings and trading experience.

You should take a look at Jean Folger’s informative article on using trading indicators effectively.

If you need some suggestions to kick-start your learning process, try these three day trading indicators.

Read more about Day Trading, Trading Indicators

If Trading Setups Review has helped you trade better, please support us on Ko-fi.

Support me on Ko-fi

Thank you for being awesome.

You can also check out other ways to support us here.

Or, please continue exploring what we have to offer…

5 Practical Steps to Become a Price Action Trader

Two-Bar Reversal Pattern Trading Guide

2-Period ADX Trend Trading Strategy

7 Top Audiobooks To Boost Your Trading Mindset (Get Two Audiobooks Free)

10 Quotes to Help You Trade Like Stoics

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Trading Course Banner

Search Trading Setups Review

Recommended For You

What Can Traders Learn From A Swiss Philosopher

How to Keep Trading Records as a Discretionary Price Action Trader

5 TED Talks on Psychology For Traders

Active Trading with the StochRSI Indicator

The Low Volume Hint to Explosive Moves

The 6 Things Traders Need to Make a Living

Bull Flag Price Action Trading Guide

Top Trading Books

Top 10 Volume Trading Books

7 Forex Trading Books To Get You Started

18 Trading Psychology Books To Help You Trade Better

Top 10 Price Action Trading Books

7 Trading Books For Your Library


If Trading Setups Review has helped you trade better, please consider supporting us on Ko-fi.

Support me on Ko-fi

Or, check out other ways to support us here.

Thank you for being awesome.


Get a Free Course Chapter from Galen Woods' Day Trading With Price Action Course [PDF]

Plus, our latest trading guides and tips in right your inbox.

Trading Setups Review

  • Support Us
  • Contact Us
  • About Us
  • Privacy Policy
  • Affiliate Disclaimer
  • Full Risk Disclosure

Learn More

  • Day Trading With Price Action Course
  • TSR Trading Guides
  • Trading Setups
  • Trading Articles
  • Trading Books
  • Site Map

Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.


The website contents are only for educational purposes. All trades are random examples selected to present the trading setups and are not real trades. All trademarks belong to their respective owners. We are not registered with any regulating body that allows us to give financial and investment advice.


Trading Setups Review © 2012–2022

Anti-Climax Pattern - Free Course Chapter

Learn a new powerful price pattern today!

Download for free now.