5 Intraday Trading Indicators That Will Take Your Trading To The Next Level
Do you want to do intraday trading but are afraid of the fluctuations in the market? The price of the stock changes from up to down and down to up in 1 second, and you do not understand how to take entry and exit and make a profit in intraday trading? So, it means you have reached the right article.
Today I am going to tell you the 5 best indicators for intraday trading. This will not only help you in trading but will also keep your mind stable during the fluctuations of the market. Because in volatility most of the decisions go wrong. But today I am going to give you 5 such Brahmastras which will kill the demon named volatility.
What is intraday trading?
Today the whole world knows what intraday trading is, but the whole world does not know how to do intraday trading.
Let me tell you in brief that intraday trading refers to the deals of shares bought and sold within a day.
For example, the stock market opens at 9.15 and closes at 3.30. You bought 100 shares of Reliance at 10 am at the rate of Rs 1000 and sold them at the rate of Rs 1020 before 3.30 pm. You made a profit of 20 (1020-1000)*100 = Rs 2000 from Reliance shares on the same day.
This is called intraday trading and the profit made is called intraday trading profit.
Why are intraday trading indicators important?
Intraday trading indicators are important because with the help of these indicators, it becomes easy to enter and exit a trade. Let me tell you beforehand that I do not claim that there will be 100% profit with the help of these 5 intraday trading indicators, but the accuracy of your profit increases.
Like earlier, you used to take 10 trades in a day, out of which 8 were in loss and 2 in profit, but with the help of indicators, the number of your winning trades can increase. With the help of intraday trading indicators, it becomes easy for you to know when to buy a stock and when to sell a stock.
Intraday trading indicators also help you in placing a stop loss. I will explain to you further with examples on the chart how to place stop loss and target in intraday trading.
Using a stop loss determines your risk capacity, that is, how much maximum loss you can take in a trade.
What Are Intraday Trading Indicators?
Intraday trading indicators try to tell from the current price whether the price of the stock will be more or less in the future. With the help of trading indicators, you can know whether the stock is in an uptrend, a downtrend, or whether the movement in the stock is sideways. The way of using each indicator is different.
There are two types of indicators: 1. Lagging indicators, 2. Leading indicators. Both these indicators are explained in detail in the article below. Trading indicators prevent you from taking the wrong entry and exit in the trade. Trading indicators give you the opportunity to take full advantage of the movement.
Trading indicators protect you from incurring huge losses.
What are the types of intraday trading indicators
- Leading Indicators: These provide early signals, ideal for anticipating reversals.
- Example: Relative Strength Index (RSI) predicts overbought/oversold conditions.
- Lagging Indicators: These confirm trends after they form, reducing false signals.
- Example: Moving Averages (MA) validate trend direction.
Top 5 Intraday Trading Indicators with Examples
Relative Strength Index (RSI)
- Explanation: RSI measures momentum on a 0-100 scale, where >70 indicates overbought and <30 oversold conditions. It’s a leading intraday trading indicator tool.
- Example: On July 25, 2025, Nifty 50’s RSI dropped to 25 (oversold) at 11:00 AM IST. Traders bought at ₹24,800, and the index rose 2% to ₹25,296 by 2:00 PM, yielding a ₹3,840 profit per lot (lot size 75).
- How to Use: Enter at RSI 30, exit at 70. Set a 1% stop-loss below entry.
- Explanation: MA smooths price data (e.g., 50-day, 200-day) to identify trends. It’s a lagging intraday trading indicators tool.
- Example: On July 20, 2025, Bank Nifty’s 50 MA crossed above the 200 MA at ₹50,500 at 10:30 AM IST, signaling a buy. The index rose 1.5% to ₹51,258 by 1:00 PM, earning ₹26,430 per lot (lot size 35).
- How to Use: Buy on a golden cross (50 MA > 200 MA), sell on a death cross.
Bollinger Bands
- Explanation: Bollinger Bands consist of a middle MA and two standard deviation bands, measuring volatility. It’s a leading intraday trading indicator tool.
- Example: On July 22, 2025, Nifty broke above the upper Bollinger Band at ₹25,100 at noon IST, indicating a 3% rally to ₹25,853 by 3:00 PM, yielding ₹57,450 per lot.
- How to Use: Buy when price hits the lower band, sell at the upper band. Use a 0.5% stop-loss.
Volume Weighted Average Price (VWAP)
- Explanation: VWAP calculates the average price weighted by volume, acting as a benchmark. It’s a hybrid intraday trading indicators tool.
- Example: On July 18, 2025, Bank Nifty traded above VWAP at ₹51,000 at 11:30 AM IST, confirming a bullish trend. It rose 2% to ₹52,020 by 2:30 PM, earning ₹35,070 per lot.
- How to Use: Buy above VWAP, sell below. Pair with volume spikes for confirmation.
MACD (Moving Average Convergence Divergence)
- Explanation: MACD tracks momentum with MACD and signal line crossovers. It’s a leading intraday trading indicator tool.
- Example: On July 15, 2025, Nifty’s MACD showed a bullish crossover at 10:00 AM IST at ₹24,700. The index gained 1.5% to ₹25,068 by 1:00 PM, yielding ₹27,450 per lot.
- How to Use: Buy on crossover above signal, sell below. Add a 1% trailing stop.
Comparison of 5 Intraday Trading Indicators
| Indicator | Type | Signal Example | Profit Potential (per lot) | Best Use Case |
|---|---|---|---|---|
| RSI | Leading | Oversold at 25 | ₹3,840 (Nifty) | Reversal trades |
| Moving Averages | Lagging | 50 MA > 200 MA | ₹26,430 (BankNifty) | Trend confirmation |
| Bollinger Bands | Leading | Break above upper band | ₹57,450 (Nifty) | Volatility breakouts |
| VWAP | Hybrid | Price > VWAP | ₹35,070 (BankNifty) | Trend direction |
| MACD | Leading | Bullish crossover | ₹27,450 (Nifty) | Momentum shifts |
How to Use Intraday Trading Indicators Effectively
To maximize intraday trading indicators, combine them for confirmation. For example, use RSI (leading) with Moving Averages (lagging) to validate Nifty trades. Set clear entry/exit rules:
- Entry: RSI < 30 + MA golden cross.
- Exit: RSI > 70 or price hits target (e.g., 2% gain).
- Risk Management: Use a 1% stop-loss and 1:2 risk-reward ratio.
- Practice on Zerodha Kite’s demo account with live charts to master intraday trading indicators.
Common Mistakes to Avoid with Intraday Indicators
- Ignoring News: RBI policy announcements (e.g., July 2025 rate hike) can override RSI signals.
- Overtrading: Acting on every MACD crossover without confirmation.
- Neglecting Volatility: Adjusting Bollinger Bands for Bank Nifty’s 3% swings is crucial.
- No Stop-Loss: A 2% Nifty drop can wipe out gains without protection.
common Mistakes and Solutions
| Mistake | Impact | Solution |
|---|---|---|
| Ignoring News | False Signals | Monitor RBI/NSE updates |
| Overtrading | High Losses | Limit to 2-3 trades/day |
| Neglecting Volatility | Missed Opportunities | Adjust indicator settings |
| No Stop-Loss | Capital Erosion | Set 1% stop-loss |
Tools and Platforms for Intraday Trading Indicators
- Zerodha Kite: Add RSI, MACD, and VWAP with customizable settings.
- TradingView: Offers Bollinger Bands and live Nifty charts.
- Upstox Pro: Real-time data for BankNifty with MA crossovers.
- Free Resources: NSE India, Investopedia.
- Tip: Use demo accounts to test strategies.