Choose reliable technical indicators for intraday algo trading to make buy/sell decisions. Technical indicators transform price and volume data into trade signals. As a day trader, you can generate signals to buy or sell in the market with the MT5 platform. You need to choose the right combination of indicators that align with your trading style. In this post, we have different Intraday technical indicators that you can use in automated algo trading. Read on to learn about the various reliable technical indicators for intraday trading.
Stochastics
First, the Stochastic Oscillator is one of the most reliable indicators for intraday trading. With the stochastic oscillator, compare a specific closing asset price to a range over a specific period of time. Use this indicator to generate overbought and oversold trading signals to determine trends and predict reversals. Stochastic oscillator displays two lines in the chart: The first one reflects the actual value of the oscillator for each session, and the other shows the three-day simple moving average. When these two lines intersect, a reversal may occur with a large shift in momentum from day to day. Surely, leverage the reliable technical indicator, stochastic oscillator, for a better intraday trading.
Aroon Indicator
Aroon is one of the most popular intraday technical indicators for trading. The indicator is a momentum-based oscillator to track price change and trend strength. Over the course of 25 periods, on a daily, hourly, or minute time frame, the Aroon indicator measures time between high points and low points. For example, strong uptrends are depicted with the AroonUp line. Meanwhile, strong downtrends follow the AroonDown line. With these uptrend and downtrend lines, intraday algos can execute trades based on trend changes or continued trending price action. Since the oscillator factors in time and price together, you can identify early emerging trends or warning signals for an upcoming reversal. Consider the Aroon indicator for intraday algo trading based on short term trends within the last 25-periods.
Intraday Volume Profile MT5
Choose volume profile MT5 technical indicators for intraday trading. The intraday Volume Profile indicator analyzes the movement of price and volume. You must use 5-min, 15-min, 30-min, and 60-minute intraday charts for short-term trading. Using this indicator, you can get an excellent picture of supply and demand for each price. This indicator represents two types of profiles that include –
Volumes Profile – This shows how much was traded at each price level.
Price Profile – Shows the price changes from buy/sell transactions.
Understand the steps to set the Volume Profile indicator in MT5 –
1. Download the indicator file.
2. Open the MT5 data folder from the files.
3. Open the MQL5 folder.
4. Copy all the folders from the downloaded file into the MQL5 folder.
5. Restart MetaTrader 5 and Refresh to update the indicators list.
You can even use a volume profile indicator to mark up support and resistance in the charts. The Volume Profile indicator highlights the heavy price action that happened in the past. Surely use Intraday volume profile MT5 Indicator for algo trading.
Intraday Channel Breakout Indicator
Channel breakout is the best indicator for intraday trading on lower time frames. The channel breakout indicator works only with short-term trading strategies. You can use this with the strategies based on length setting ranging from 1 min to 4 hours. The intraday entry is calculated based on the high and the low of the last bar. If the channel band breaks the last bar’s high, then enter long on your strategy. Or enter short if the channel triggers the previous bar’s low. Being an intraday trader, you can use this in a consolidating market to trade breakouts and can always tweak the length setting between 1min to 4 hours. Surely, the intraday channel is the most reliable indicator for your next breakout strategy.
Aggressive Intraday Scalper
The aggressive intraday scalper is another reliable technical indicator for trading. The aggressive Intraday scalper represents trade opening and closing signals arrows on the chart. You can use this indicator for intraday scalping to analyze market fluctuations and volatility. The indicator also sends email and push notifications when the signal emerges. Using the aggressive Intraday scalper indicator, you can even determine the probability of reversal using the statistical data. You can use this indicator in algo trading to get a buy or a sell arrow over the chart. Creating an automated bot using this indicator enables you to analyze the performance and apply signal filters. Definitely, the aggressive Intraday scalper is the most reliable indicator for algo Trading in MT5.
MFI Indicator
Finally, review the reliable MFI indicator to build a solid intraday trading strategy. The Money Flow Index is a technical analysis indicator that allows you to measure the flow of money into and out of a security during a period of time. Determine if there are buying or selling trends in a specific asset so you can monitor divergences of the prices for possible trend reversals. An MFI reading above 80 causes overbought conditions and a reading below 20 denotes oversold conditions. Therefore, look for reversal trends, sell when the indicator shows an overbought condition, and buy when it shows an oversold condition. Additionally, you can also monitor the mid-point 50 level to see when the market shifts from bullish to bearish and vice-versa. Indeed, the MFI indicator allows you to create reliable intraday trading models.