Technical Indicators : Intraday

Technical indicators DO NOT tell you what to do. They supplement your decision-making by revealing trends within the data

To be consistently profitable, you need an EDGE. I've developed my edge by learning to identify and align multiple variables, to supplement my swing and intraday trading.The Intraday Technical Indicators I use

VWAP : Volume Weighted Average
EMA : Exponential Moving Average (21& 9)
PDC : Previous Day Close
RSI : Relative Strength Index
Ultimate Volume Indicator

Looks confusing huh? Don't worry I'll break it all down, but first lets start with timeframes.

Time Frames: Intraday

The 1-minute, 5-minute, and 30-minute time frames identify in-the-moment opportunities for scalping, intraday swing trades or entering a multiday swing trade. Combining bigger and smaller time frames creates layers of context to enrich decision-making. These signals are not meant to tell traders precisely what to do but instead exist as bullish, bearish, or neutral signals. Although indicators supplement trading, too many signals can become unreadable, chaotic, and noisy. The key is understanding how each indicator can work in your favor and adopting the ones that make the most sense for your trading style.Intraday Timeframes

1min
5min
30min

VWAP

Volume Weighted Average VWAP stands for Volume-Weighted Average Price, a technical indicator used to determine the average price at which a particular asset has traded throughout the day, taking into account both the price and volume of each transaction.

VWAP is often used by institutional traders as a benchmark for executing large orders.

VWAP is also used as potential support and resistance levels. If the price of an asset is consistently trading above its VWAP, it may be considered to be in an uptrend, while if it is trading below its VWAP, it may be considered to be in a downtrend.Institutional trend confirmationLarge institutional buyers use VWAP to move in and out of stock with as little impact as possible. Institutional traders are incentivized to buy or sell as close to VWAP as possible. With VWAP, traders gain an edge by confirming a new trend before it plays out. The higher the institutional ownership, the more likely a trend will emerge in the price action. Holding above VWAP is a signal of strength. Holding below VWAP is a signal of weakness.

VWAP Support below

VWAP Resistance

Overall, VWAP is a useful tool for traders who want to better understand an asset's average price over a given period and how it trades relative to that average.

The 9 & 21 EMA

Exponential Moving Average

An Exponential Moving Average (EMA) is similar to an SMA but places more weight on recent data points. The calculation for an EMA gives more weight to the most recent prices and less weight to older prices. As a result, the EMA is more responsive to price changes than the SMA. I use a combination of the 9 & 21 ema strictly for intraday trading.

EMA support

EMA resistanceIn summary, the EMA places more weight on recent data points. Both can be useful in identifying potential buy or sell signals.

PDC

Previous Day ClosePDC Script
Previous Day Close (PDC) is a technical indicator that shows the closing price of an asset on the previous trading day. This value is often used as a reference point for traders to compare the current day's price action and make trading decisions.For example, if an asset's price is trading above the PDC, it can be considered a bullish signal, as it indicates that the buyers are in control and the price may continue to rise. Conversely, if an asset's price is trading below the PDC, it can be considered a bearish signal, as it indicates that the sellers are in control and the price may continue to fall.

Support & ResistanceTraders may also use the PDC as a support or resistance level.PDC support If an asset's price is approaching the PDC from above, it may find support as traders who missed out on buying at the previous day's close may be looking to buy in at that level.

PDC Resistance If an asset's price approaches the PDC from below, it may encounter resistance as traders who bought at the previous day's close may be looking to break even.

Using PDC to Identify Gaps

PDC is also used to measure the size of a gap at the open. When the price of a stock opens higher than the previous day's close (PDC), we know the stock is gapping up. When the stock price opens lower than PDC, the stock is gapping down.

Gaps are created in Pre-market.

RSI

Relative Strength IndexRSI stands for Relative Strength Index, a popular technical indicator traders use to identify potential buy or sell signals. The RSI measures the strength of an asset's price action by comparing the average gains and losses over a specified period of time.RSI is plotted on a scale of 0 to 100. If the RSI is above 70, it is considered overbought, which means the asset's price may be due for a correction. Conversely, if the RSI is below 30, it is considered oversold, which means the asset's price may be due for a rebound.

RSI Divergence

Traders can use the RSI to identify potential buy or sell signals by looking for divergences between the RSI and the asset's price action. If the price of an asset is making higher highs, but the RSI is making lower highs, it could be a sign of a potential trend reversal. Similarly, if the price of an asset is making lower lows, but the RSI is making higher lows, it could be a sign of a potential trend reversal in the other direction.Bullish Divergence - Class A

Price decreases while RSI increases within the same timeframe.

Bullish Divergence - Class B

Price remains flat while RSI increases within the same timeframe.

SEE IT

Now let's combine all of my technical indicators into one chart.

We SEE a class A bullish divergence from the RSI
We SEE the 9ema cross above VWAP & the 21EMA
We SEE VWAP support
We SEE 21ema support
We SEE the break of PDC resistance.

Thanks for reading, If this brought you value, leave a comment, I'd appreciate your feedback!
Jeremy Fielder