Day trading demands a lot from traders to be successful. Fortunately, several trading tools can facilitate the process. Discover the top three here now.
Table of Contents
1. Introduction
Day-trading, aiming to capitalize off short-term market moves, demands quick decision-making, risk control, and proper time management. Fortunately, several tools are available to facilitate the process uniquely.
This article shares three TradingView options every technical day trader must consider to bolster the odds in one’s favor. As a perk, interested readers will receive exclusive access to the most unique one to stay ahead of the competition.
2. Logic Day Trading: A Day Trader's Most Trusted Companion
The Logic Day Trading indicator is a technical tool that utilizes the power of Donchian Channels and price action to reveal hidden intraday trading opportunities.
Technical analysis with Donchian Channels typically involves seeking a breakout. Bullish runs are imminent when the market price hits the upper channel, and most anticipate bearish moves when it hits the lower one.
As for price action, classical chart patterns and candlestick patterns provide invaluable forecast data. Examples include the pennant, doji, ascending & descending triangle, and hammer.
Fortunately, the Logic Day Trading tool saves users the hassle of combining both theories manually through its comprehensive strategy. After all the calculations behind the scenes for potentially profitable trades, signals quickly appear.
Owing to the indicator’s system of featuring price action for setups, it has the fastest reaction time to the markets. It doesn’t utilize any lagging system.
Hence, each trader can rest assured of entering profitable trades the earliest to make as much profit as possible.
The Logic Day Trading indicator works mainly in three ways:
- Revealing trend continuation opportunities (through an ‘underlying trend’ filter)
- Detecting impending breakouts
- Catching tops and bottoms
Therefore, it satisfies every potential user due to its high accuracy in any use case.
Moreover, this nearly-automated trading system suggests the maximum profit from every potential trade. It is essential for risk management, which is paramount for success.
Overall, day traders can’t go wrong with this indicator as their first choice.
3. Range Box: Intraday Trading With an Unprecedented Approach
Range Box trading involves obtaining forecasts from a sideways trend (range) in which a rectangle (box) has been drawn to contain the period.
For example, while trading on the 5-minute chart, the market may switch between uptrends and downtrends for a sustained period. At some point, it begins consolidating (ranging), where the equal buying and selling pressure keeps it from bullish or bearish runs.
Day traders can use range boxes (drawn) over such periods in effective & proven ways.
Proponents of this strategy believe a bullish trend that the market price closing above the box is a bullish signal, and a candle closing below it is bearish.
A Range Box indicator on TradingView can include settings to adjust the following based as desired:
- Number of candles per box
- Data source for calculation
- Percentage difference between the high and low in the box
- Box projection range
Owing to its nature, the tool works best in low volatile markets or conditions (e.g., during Asian or Sydney sessions), where ranges frequently occur.
Like the Logic Day Trading, users can customize the Range Box’s colors and shades to their tastes. It only depends on the trading platform and developers.
Newbies and experienced day traders seeking a unique approach may explore this indicator.
4. Average Daily Range (ADR): The Tested and Trusted Technical Tool
A more popular approach (within and outside TradingView) involves the Average Daily Range (ADR) indicator.
It depends on the average daily price ranges – a much-welcomed data source due to the erratic nature of day-trading.
In technical analysis, the daily price range is the difference between a trading day’s highest and lowest prices.
Admittedly, the Average Daily Range has a few pros and cons.
The main advantage lies in its ability to measure volatility, which guides traders’ risk management decisions in many ways.
For example, a low or high volatile market (revealed by the ADR) will prompt traders to adjust their position sizes based on the desired risk.
Traders can also set stop-loss and take-profit orders after understanding the ADR value, which saves profits and prevents losses.
That said, the cons of the ADR are note-worthy.
It does not indicate the direction of an impending price move but only the extent. Thus, traders cannot use it for buy or sell signals.
Moreover, veterans consider the indicator lagging, as it depends on historical price data. Such indicators take too long to respond to recent price moves, a significant setback in rapidly changing markets.
Understanding these limitations, the ADR can be a good resource for navigating intraday trading.
5. Surmounting Every Challenge With the Logic Day Trading Indicator for TradingView
The fast-paced nature of day-trading benefits traders who enjoy compounding profits in the shortest time. Executions, from entries to exits, occur on lower timeframes, and every trade closes before the end of the trading day.
However, several challenges affect many traders, from high volatility to emotional stress. High cost, discipline, and consistency are also problems worth noting.
Luckily, the Logic Day Trading indicator aims to mitigate these setbacks through several inventive means.
It combines the power of Donchian Breakouts with price action, presenting a semi-automated application.
Succinctly, below are some benefits users already boast:
- First-hand knowledge of potential bullish or bearish breakouts
- Awareness of imminent tops and bottoms
- Understanding of the best chart levels for take-profit and stop-loss orders
- Ability to trade solely based on the underlying trend
Sounds too good to be true? Click here to join the exclusive group relishing these and more perks today.
6. Conclusion
Day-trading can be made much more effortless by choosing the right indicators.
The Range Box and Average Daily Range are notable options to explore on TradingView. However, neither comes close to the Logic Day Trading indicator in efficiency.
As discussed, its algorithm is designed for highly supportive assistance, regardless of the period, timeframe, or financial market.
Please share this article with friends, acquaintances, and any ambitious trader. Also, remember to leave feedback in the Comment Section for enlightening discussions.
