What are the best technical indicators to daytrade YM?

[sudha78]

Folks

I am a newbie.There are many technical indicators like RSI, MACD , sma, ema , Williamson% R, Arms indicator, TRIN etc., All of these may not be good for day trading. May be good for swing trading. What are the best indicators to learn for day trading to find oversold/overbought conditions, trend etc?

thanks.

[wsam29]

in my opinion, price, volume and TICKs.

I'll also compare all 4 markets with each other to see who is leading and lagging for the day. Along with VIX index.

TRIN and put/call, I have it up but they are always in conflict with me, so I just use what best suits me even though they offer clues on its own, I just cannot interpret it to make it profitable for me.

everything else lags because its a mathematical calculation.

I'd suggest understanding the psychology of trading first because no amount of indicators will help if you don't understand yourself and how you'll fit into the trading environment.

Not to be discouraging but its taken me 8 years to understand myself and the trading environment. A whole wack of money along with pain and emotional suffering.

The size of your account helps to survive but it is a right of passage to make it in this type of business. If you give up, you'll never succeed at this business.

Once you get that, its just a matter of working out the kinks to come up with a trading plan that fits your temperment and personality. You might not even be suited to intraday trade .

[Kiwi]

Price and a couple of moving averages. Learn to observe price and how it acts at support and resistance (prior highs and lows, well chosen moving averages or keltners).

You can use volume if you trade something where it works (it doesn't work so well in heavily manipulated or very thin markets).

Also you could add the behaviour in support and resistance created by action and volume at price levels (aka Market Profile).

[sudha78]

Thanks for the vauable replies. Now I trade continuation and trend reversal but not not looking at technical indicators. I heard that too much of technical indicators is a overkill.

[Soultrader]

	Quote:	sudha78
	Folks I am a newbie.There are many technical indicators like RSI, MACD , sma, ema , Williamson% R, Arms indicator, TRIN etc., All of these may not be good for day trading. May be good for swing trading. What are the best indicators to learn for day trading to find oversold/overbought conditions, trend etc? thanks.

Hello sudha78,

Its very interesting you mention oversold/overbought conditions. I had a post with Pivotprofiler indicating the same thing: there is no oversold/overbought condition. My advice for you is to study price action. Market internals will help you significantly such as: TICK, TRIN, PC Ratio, and Prem. But as a new trader you should not enter the wrong path as everyone else does by studying every indicator known to mankind. If you are working on reversal points, identify support and resistance. No need to complicate things, trading is fairly simple. (simple but not easy)

[trader273]

I personally think price action ( I use candle patterns as I dont know or how to read tape) along with moving average. I try to go with the trend, the path of least resistance is where I want to be.

[wsam29]

oh the dreaded stage of learning about every indicator out there to find the one that is perfect, winner everytime.

I remember those times, then you go from 2 indicators to 10, then you try 5, then none at all, then back to 1, all on the same screen to the point its a indicator sandwich with a pickle on top...oh wait, price chart on top.

If and when that does happen, its time to look in the mirror and address the real problem.

Any trader out there denying they never went through that phase I would say are lying or have never traded before in their life.

I'm guilty of the offense.

[Soultrader]

	Quote:	wsam29
	oh the dreaded stage of learning about every indicator out there to find the one that is perfect, winner everytime. I remember those times, then you go from 2 indicators to 10, then you try 5, then none at all, then back to 1. If and when that does happen, its time to look in the mirror and address the real problem.

hahaha... been there myself. Even bought a book called The Encyclopedia Of Technical Market Indicators my first year in trading. lol Oh man.. how useless it has turned out to be.

I use market internals, market profile, and tape. But on my price chart, I have nothing. Just simple pivot and MP levels

[wsam29]

I hope you're using that book for something good then, door stop maybe?

[Soultrader]

I slap roaches with it. And sometimes calve raises.