Day Trading Indicators what indicators could be used for daily trading?

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Day Trading Indicators what indicators could be used for daily trading?

Many people ask about what technical analysis indicators should they use to get a better result. There are many indicators available, and it would be hard, especially for novice traders, to decide which one to use. Most professional traders believe that using too many indicators may take your focus and distract you, therefore you may lose money. They recommend that to keep your trading system simple and find a maximum of two to three indicators that suits your trading strategy, and you can use them properly.

Indicators provide an insight into the price action and make the prediction easier for a trader.

But yet all the visualized information given by the indicators are already preset on the price chart. As experts have said, it is not mandatory to use an indicator. It has been said that indicators represent the data differently, which can help you spot a subtle move or a pattern. Always remember that using an indicator in neither good nor bad, but they are mere tools. The usefulness of an indicator directly depends on your knowledge and skills.
You should note that many indicators work in a very similar fashion, for example, take MACD, RSI, and Stochastic. However, they are slightly different; their information overlaps in as many cases. Have all these three indicators active is not going to do you any favor. MACD could be replaced entirely by two moving averages. Overlapping indicators cannot be used as a confirmation for each other because they always return similar signals. You should pick one indicator from each category to avoid the clumsiness and self-confirming trading systems.
Oscillators: The indicators that belong to this group fluctuate between two lines, usually with upper and lower boundaries, and these indicators are situated below the price chart. Oscillators include the RSI, Stochastic, Commodity Channel Index (CCI), MACD, and others.
Overlays: Unlike the Oscillators, these indicators are placed directly on the price chart. Bollinger Bands, Parabolic SAR, Moving Averages, Fibonacci Retracements, and many more fall into this category.

Combining indicators

Your trading style, the asset you trade, and your personal preferences are the characteristics on which choosing a proper indicator depends. There are specific rules that can help you create a balanced trading system.
You might consider choosing one indicator from each category to excel in your trading system. For example, you may use MACD to determine the direction and strength of the prevailing trend and then find optimal entry/exit points with the help of Bollinger Bands.
Any oscillator can be combined with any overlay. However, certain combinations work better than others. It is also possible to use more than one overly. As a sample, Parabolic SAR is usually combined with a moving average. Another essential thing which you should always pay attention to is to keep your trading careen clean and tiny since the overusing indicators can result in an overabundance of information, and this is likely to distract you and lower your overall performance. Do not forget that any combination of indicators can and bring you false signals sooner or later. Indicators are tools and cannot trade all by themselves. It is your judgment that should guide you.

To make a long story short, avoid using more than three technical analysis indicators and try to know them thoroughly. To take high signals from an indicator, you should know how it works, what is its purpose and limitations, and how often it may give you false signals.
By noticing the information above, you can choose the best indicators matched with your trading strategy to improve your decision making.

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