Best volume indicator for day trading
Tick charts display a certain number of trades before printing a new bar and are often used by short term traders. Unlike time based charts, tick charts are based solely on best volume indicator for day trading trading activity of each buy and sell transaction. Tick charts are commonly used by day traders who need to make quick trading decisions and do not have the time to wait for a 3 or a 5 Minute bar to close.
You can decide on your own tick chart according to your method. For example, a Tick chart would create a bar after transactions. Tick bars can be an essential tool in day-trading due to the fact that the number of bars will increase during high volume periods while decreasing during low volume periods. In essence, when volume increases, the activity tells us that there best volume indicator for day trading greater interest versus lack of interest in the underlying best volume indicator for day trading.
This higher activity also tends to give day-traders a better indication of market trend. Here are 3 Trading Indicators that futures traders can use alongside tick charts for short term trading:. Volume Indicators may be essential when trading with Tick Charts to confirm the levels at which buying or selling is taking place.
Large positions professional traders will often be reflected in volume larger bars and confirm a move higher or lower. The RSI Indicator can be a very helpful tool when day-trading during high volume periods. The way we prefer to use it is a little different from the way most traders use it.
If prices suddenly surge higher but momentum remains flat or goes even lower, this may be a warning that this higher surge may not last due to a lack of follow through from buyers. Positive Momentum can also be used as a filter for long trades while negative Momentum as a confirmation for short trades. If we are considering a long position and we notice that Momentum has not yet turned positive, we may consider monitoring the Momentum indicator to turn positive as well for added confirmation of an uptrend.
Many short term traders interpret indicators the wrong way. As a result, it is essential to identify how indicators behave through different periods of time. However, you will soon discover that with real screen time experience, you can find the tick period suitable for you.
Please keep in mind that short term trading requires an enormous amount of discipline and the ability to make quick decisions and exercise patience while waiting for trading signals. Trading futures and options involves substantial risk of loss, and is best volume indicator for day trading suitable for all investors. Past performance in not necessarily indicative of future results VFM Optimus Futures is a leading online futures broker that caters to traders best volume indicator for day trading fast execution and stable data feeds combined with aggressive margins and deep discount commissions.
About Optimus Futures Optimus Futures is a leading online futures broker that caters to traders seeking fast execution and stable data feeds combined with aggressive margins and deep discount commissions.
By assessing time, price, volume and momentum with best volume indicator for day trading indicators, the Nasdaq futures contract NQ can be analyzed for potential trade opportunities. Insights from technical analysis could provide buy or sell signals or an indication of potential trend reversals or market moves.
The Parabolic SAR Stop and Reversal indicator can be a helpful tool for traders to determine the end point of a current trend. Dots are placed above or below a price trend to show bullish below or bearish above buy or sell signals. The chart below of the Nasdaq futures contract NQ during October — August of is an example of using the Parabolic SAR day trading indicator to spot market changes:.
The Volume Indicator VOL displays the number of financial instruments traded during a specific period of time. Volume spikes signal surges in buy or sell activity and often act as a prelude to potential market reversals or large price action moves.
The chart below of the Nasdaq futures contract NQ during October — August of is an example using the VOL Indicator to spot a sudden increase in buying or selling activity:. The Momentum Oscillator can be used by traders to show potentially overbought or oversold market conditions. Displayed below, as a second chart panel, the Momentum Oscillator represents the speed and strength best volume indicator for day trading a trend over time.
The greater the value above the horizontal signal line, the greater the probability is of increased price movement and vice versa. The following chart featuring the daily Nasdaq futures contract NQ from October — August of is an example of the momentum oscillator increasing ahead of moves within the market:. As always, remember past performance is not indicative of future results and you should always trade within your risk tolerance levels.
As an award-wining futures brokerNinjaTrader provides deep discount commissions and unmatched support. Download NinjaTrader free today and explore over free pre-built indicators! The following 3 technical indicators are frequently used when analyzing futures markets: The chart below of the Nasdaq futures contract NQ during October — August of is best volume indicator for day trading example of using the Parabolic SAR day trading indicator to spot market changes: The chart best volume indicator for day trading of the Nasdaq futures contract NQ during October — August of is an example using the VOL Indicator to spot a sudden increase in buying or selling activity: Momentum Oscillator The Momentum Oscillator can be used by traders to show potentially overbought or oversold market conditions.
The following chart featuring the daily Nasdaq futures contract NQ from October — August of is an example of the momentum oscillator increasing ahead of moves within the market: A Bearish Technical Trading Indicator.
In this article I am going to continue with the volume and price action combination with some good examples and some explanation about volume indicators and the volume indicator which I use.
First of all, I use a VSA indicator for reading the volume. If you remember, in the previous article I talked about buying and selling climax. As you can see in the chart there are some colors in volumes.
The white color means selling climax. The red color means buying climax. The yellow color means low volume and last but not least the green color means that there is a small movement with high volume. Look at the first blue box. The yellow horizontal lines are whole numbers which they act many times as natural support and resistance levels. In the first blue box you can see that we best volume indicator for day trading an increasing volume and there are two selling climax white bars.
The best volume indicator for day trading is moving down with solid negative candles. This means that the investors are selling heavily. But look the price hit a whole number our support in this case. After the two white bars it appears a red bar which is a buying climax. This is a good signal that the mini-down trend is at the end. The two white bars, the red bar after them and the whole number as a support are our signals for buying the asset right now.
Look, it begins a new up- trend. In the second blue box, you can see that we have again a selling climax but the price stop moving down and makes a reversal.
This is our Price Action Signal. We have higher- lows a signal of an up- trend. We can re- enter with a call in this spot. In this chart we have a different case. The red horizontal line is a previous resistance and a whole number, too.
We have an up trend and after that as you can see in the blue box a consolidation period with low volume near to the resistance. Notice that when the price hit the resistance it appears a big white bar which is a selling volume.
Finally this is true and in next 45 minutes and more the price is moving down. There are many ways to read the volume. I best volume indicator for day trading longer expiry. Good Day Traders, In this article I am going to continue with the volume and price action combination with some good examples and some explanation about volume indicators and the volume indicator which I use.