Becoming a profitable day trader is a dream to many, but the road to become profitable is quite difficult and takes a lot of patience. The reality is the amount of time for a trader to become profitable varies from knowing indicators and handling your own emotions.
Today I will be showing you 5 Day Trading strategies that I used in my forex journey on which I had acquired over $50,000 in profits trading for a local firm.
Key takeaways
- Becoming a profitable day trader takes time and is great as a side hustle while also keeping your current job to increase your overall trading capital.
- Day trading is 20% technical and 80% emotions.
- You can boost your progress by getting funded my prop firms managing large amounts of capital.
- Patience is your best friend on the road to become a profitable trader.
why indicators are crucial for your trading career
Indicators play a crucial role for day traders, assisting them to make informed decisions in their trading journey. By using the resources that are available on trading platforms such as tradingview.com can significantly increase the probability to identify the right direction of the market. The key question remains: Do these indicators increase the probability of winning trades consistently?
Indicators can be a double edged sword in trading, and its important to use the proper ones in the current condition of the market. While indicators have the potential to assist you, it can also give you a false idea. An overload of indicators can sometimes create confusion and often times cause you executing trades that simply don’t make sense. Having a balanced and selecting the best indicators during specific times is crucial and I am excited to show you the indicators that I have used, as someone who have used 10s of indicators.
my top 5 indicators
As we dive into my top five indicators for your day trading, I encourage you to explore and test out other indicators to find the best fit for your trading career some indicators may work better in swing trading as compare to day trading. By testing different indicators and analyzing their performance, you can develop a greater understanding on which indicator aligns with your trading.
Fixed Range Volume Profile
One of my most used Indicators in almost every trade is the Fixed Range Volume Profile. This indicators provides deep insights into trading volume, by identifying areas of high to low volume, it becomes a valuable tool for determining key zones, such as support and resistance lines. Additionally, it aids you in making the right decisions for exiting and potentially closing ur trades early. The fixed Range Volume Profile was a indicator that I 10/10 recommend to test and see how it works out for you.
THe power of EMA's 9/21 levels
Since the beginning of my trading journey in 2018, I have consistently used (EMAs) or also known as Exponential Moving Averages as a fundamental tool. After years of testing from different levels such as 20/50, 10/20 and 5/15 I have found that 9/21 has had the highest accuracy.
But how do EMAs actually work?
These indicators help identify when momentum in the market trends shift. For instance, if a market is currently on a uptrend, the EMA’s will show us when the uptrend is soon to switch to a downtrend. By closely monitoring the EMA’s, traders can know when to enter a trade, exit a trade, or even hold onto the trade until the EMA’s say otherwise.
Relative Strength Index or also known as (RSI)
Another indicator that has earned its place of my list is RSI or also known as Relative Strength Index. RSI is a useful tool but there is a reason it has not made number one in this list, that is because the RSI can occasionally produce false signals. The RSI helps serve to indicate you when the market appears to be overextending and is need of a pullback.
In trading, markets naturally experience pullbacks or also known as retracements. RSI becomes particularly helpful in identifying these retracements and allows us to capture these small moves to make profitable gains. By leveraging this tool traders can strategically make good profits in the lower time frames.
It is important to test out this indicator heavily to find your sweet spot on how you’ll be executing trades with it.
Fibonacci retracement indicator
The Fibonacci tool is an essential tool that I recommend trying out, trades should consider incorporating this into their day trading. This indicator plays a crucial role in identifying the completion of a pullback, as we discussed earlier, this indicator gives you a better understand when that pullback is done and will continue the overall movement. The tool allows traders to trade with the trends and increase the probability of winning the trade.
Tip: when combining the insights of the Fibonacci tool and EMAs and correlate the two, you can achieve a powerful confirmation signal. Personally I correlate these two for most of my trades making me win 70% of my trades. Utilizing both tools will offer a great perspective on the market.
Bollinger bands sign of resistance
Bollinger Bands, a widely popular indicator among the best professional traders, it is a highly effective indicator to identify hidden resistance zones. However, this indicator can be quite challenging and getting used to, solely because you’ll need to test new levels. These bands not only reveal resistance lines but also when the market is in a state of overextension, as shown in the image above.
By carefully using Bollinger Bands, traders can improve their overall skill. Additionally, these bands indicate when the market has become overextended or vise versa, suggesting price reversals or corrective phases.
Correlating this indicator is almost a must because this indicator alone will not bring profits, to get the most out of it, I recommend correlating it with fibonacci or EMA’s.
Full recap and thankyou
In conclusion, we have explored my personal favorite indicators from Fixed Range Volume Profile, EMAs, RSI, Fibonacci tool, and Bollinger Bands. I hope you’ve gained valuable insights to improve your overall trading career.
Remember, indicators alone do not make a trader profitable but incorporating these will drive you closer.
Thank you for joining us on this journey of exploring trading indicators. Happy Trading!
