Simple Indicators and Oscillators used in Intraday trading

Stock market price prediction on a stock and to catch the right price in intraday trading to do a trade is not an simple task as considered. But now a days there are many simple software’s and many easy techniques are there which can be followed. But all is many, means really in hundreds of strategies are there and also learning all those gives very big headache and for the whole life time we can only learn, but we cannot succeed from intraday trading. The simple thing is to use the pre-designed simple indicators and oscillators which gives results after several years of trading. In this article we are going to see about the Oscillators, Indicators, and some useful strategies which gives profit. Here we have given very simple steps which are key points to be noted, this article can give an basic idea to the technical charts in stock market tips analyzing.

1. MACD Oscillator

2.Stochastic Oscillator

3.Bollinger bands

4.Relative Strength Index

5.Volume Analysis

MACD Oscillator : Moving Average Convergence and Divergence oscillator is mostly used and very easy to understadable than any others.

  • MACD is an oscillator and consists of base line in nifty chart.
  • The base line has a value of zero and the oscillator swings above and below the base line on nifty live chart.
  • The reading value on Y axis for MACD changes from time interval as per the current value of the stock.
  • The difference between the two moving averages EMA (Exponential Moving Average) is the MACD oscillator.
  • For instance, on a nifty intraday charts, if the value of nifty 10 SMA is 5050 and 20 SMA is 5080, the difference of SMA 20 and SMA 10 is 30 which makes the oscillator to swing below the base line
  • At this point, 10 SMA is below 20 SMA line and the value of the oscillator will be 30 below the zero line which is -30 on a live nifty chart
  • If nifty 10 SMA is 5080 and 20 SMA is 5050, then the value of oscillator is +30 making it to stand above the base line
  • Three applications are majorly used with moving average convergence divergence indicator to trade in stocks and nifty intraday.

Stochastic Oscillator :

It is an oscillator that gives the closing price to its price range over a given time period. The oscillator’s can be  adjusted to the market movements by reducing and  adjusting the time period or by calculating the average of the result which is shown in charts.

Bollinger Bands :

For measuring price volatility, Bollinger Bands are used and they adjust themselves to market conditions. They can find almost all of the price data needed between the two bands. There are three bands (curves) which is drawn in between the candles of the chart and the middle band gives the simple moving average and other two adjust themselves according to the middle which gives the price volatility.

Relative Strength Index : (RSI)

RSI is highly used by all technical persons which is used to check whether the stock is over sold or over bought. RSI is valued by 0 to 100 with high and low levels are marked with 70 and 30 respectively. RSI will give 70% accuracy result which should also be considered while picking the stock for trading.

Volume Analysis :

By analyzing the volume in conjunction with price movements, investors can determine the changes in a  stock price. Volume typically increases as price increases and vice versa. This will work out and gives result above 80% accuracy and break outs are very popular which is related to Volume Analysis.

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