Best Indicators For Day Trading Stocks And Futures

In this post you will learn: 1) The best markets to trade 2) How to set up your charts 3) The 3 best indicators for day trading stocks and futures 4) How to easily identify the start and end of the trend.

Before I move ahead a small information to share I have over 17 years of trading experience now. I started in NSE stocks and traded NSE / BSE stocks, futures, options, MCX commodities and currency markets. Now I will only show you stocks and futures markets. Let’s keep it simple, No stock filtering or no complex options strategies.

The best markets to trade:

  • Nifty future
  • Crude Oil
  • Gold

Chart setup:
Let’s use a different chart setup
Many traders are losing money
If you use the same chart setup as other traders you will also lose money
The unique chart setup should be the edge

3 Ways to display charts
Most traders are using either time based (5 minutes, 15 minutes etc) OR volume based charts (20 tick or 100 tick etc). 90% of traders are using these kinds of charts. While we will use a third kind of chart called volatility based charts (eg. range bars).

Our range bar charts in Nifty is of fixed points (5 OR 10 points). So if price breaks 5 OR 10 points range then only new candle will form.

So what are the best indicators for day trading stocks and futures? We will use normal indicators, but our settings will be different. So, this is an edge again. We will see what others cant see.

We will use 3 simple indicators and I feel they can be the best indicators for day trading stocks or futures. We will use 1) Bollinger Band (12,2) 2) MACD and 3) RSI 7.
Best Indicators For Day Trading Stocks
The setup:

  • Go long when MACD crosses over signal and MACD should be above zero and MACD histogram should be positive.
  • Ride the trend till the bars touching the upper Bollinger band.
  • Exit long when RSI 7 turns down OR candle closes below Bollinger bands.
  • Vice versa for the short trade setup.
  • These trade setup will work on any market.

You can comment your questions (if any) in the comment section below this post. Your observations and results are welcome. I used Zerodha Pi platform for the charting. To access Zerodha Pi CLICK HERE.

Indrajit is a professional blogger and trading system developer. Amibroker expert, WordPress expert, SEO expert and stock market analyst.Trading since 2002, he has started the journey of on 2008. He follows Indian and world stock markets closely.

Categories: Trading Strategy

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2 replies

  1. hi sir this range bar chart option not available in PI. How to set this now please reply

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