7 Popular Indicators for Intraday Trading [Guide for Beginners]

1. Volume Weighted Average Price (VWAP)

The volume-weighted average price, or VWAP, is a crucial instrument for intraday traders who want to forecast stock price movement. VWAP is the weighted average of the stock price over a specific time, as the name implies. The volume for that specific price candle is used to weigh the stock price.

It aids in the purchase of low-cost assets and the sale of high-cost assets. A price that is less than VWAP is regarded as undervalued, whereas a price that is more than VWAP is considered overvalued. Prices crossing above or below the VWAP line in the chart signal a trend change or momentum shift.

The VWAP serves as a price benchmark for a single day. As a result, it's perfect for intraday analysis. Chartists can establish the intraday trend by comparing current prices to VWAP readings. During a sideways market, the VWAP indicator can also be utilized as a dynamic support/resistance line.

2. EMA (Exponential Moving Average)

Moving averages are one of the most widely used technical indicators by traders all around the world. There are several different forms of moving averages, and for intraday trading, we recommend the exponential moving average (EMA).

Moving averages show the stock's average price over a certain period. When calculating the average with the EMA, all of the price points are not given equal weightage; instead, the closest ones are given more weight than the far ones.

Crossovers are the greatest intraday trading method based on EMA. Take a BUY position when a short period EMA crosses above the long period EMA, and a SELL position when a short period EMA crosses below the long period EMA. Short and long durations should have ideal values of 5 and 20, respectively.

Using moving averages to trade can be tremendously successful in a trending market, but it can cause whipsaws in a sideways market.

3. SuperTrend Indicator

Supertrend is a well-known trend-following indicator that excels at the intraday timeframe. It's also a trend-following indicator with a reputation for precision and accuracy.

Supertrend applies to all instruments, including equities, commodities, and forex. The Average True Range (ATR) and a multiplier number are used to calculate it. The ATR (Average True Range) is a technical indicator that indicates how volatile a market is.

When the Supertrend indicator closes above the closing price, a buy signal is generated, and when it closes below the closing price, a sell signal is issued.

4. ADX (Average Directional Index)

We believe that trend is every intraday trader's closest buddy and that the ADX indicator aids in evaluating the strength of the trend.

The ADX is a trend strength indicator that is non-directional. Its values range from 0 to 100, with the higher the value, the stronger the trend. The default look-back duration for ADX is 14 periods, however, this can vary depending on the stock or index's relative volatility. It's frequently combined with two other indicators, the +DI and -DI, to establish the trend's direction.

A number of less than 25 suggests a weak trend, while a value of more than 75 shows a significant trend. To filter out spurious signals, ADX is usually used in conjunction with other trend-following indicators such as EMA or Supertrend.

5. OBV (On Balance Volume)

On Balance Volume (OBV) is a popular momentum indicator that uses the change in absolute volume to predict price movement. Because of aggressive trading by institutional investors, there is a widespread notion that volume determines the price. The On Balance Volume indicator effectively tracks this smart money flow into the market and predicts price direction in the future.

The following are some examples of how OBV can be interpreted:

• If the change in OBV value is greater than the change in price over a certain period, the price may go sharply higher or down shortly.


• OBV Divergences can be very useful and dependable. When OBV makes a higher high and lowers low while price makes a lower low, this is called bullish divergence. A bearish divergence occurs when the OBV makes lower highs and lower lows while the price makes higher highs.

6. Donchian Channel

The Donchian Channel is a powerful trend-following indicator that can be used on both the intraday and daily timeframes. It's calculated by adding the Highest High and Lowest Low for a given period.

Any break of the upper or lower band of the Donchian channel is considered the commencement of a new trend. The Donchian channel can also be used to analyze price volatility. The Donchian channel will be rather narrow if the price remains constant. The Donchian channel will be wider if the price varies frequently.

7. CPR (Central Pivot Range)

CPR is a versatile intraday trading technical indicator. It has three levels: a pivot point (pivot), a top central level (TC), and a bottom central level (BCL) (BC). The CPR levels for the current day are calculated using the previous day's high, low, and close prices. Throughout the day, their levels remain steady.

Any breakthrough above or below the TC and BC lines suggests that the trend will likely continue. Furthermore, if the breakout candle has a bigger volume than the preceding candles, it serves as an additional confirmation.

Support and resistance can be provided through CPR lines. When used correctly, it can assist you in determining your stop loss level. This can be done with any of the three CPR lines.

In the intraday timeframe, we found the CPR indicator to be extremely accurate. For high beta equities or indices, it's best to utilize it on a 5-minute chart.