Best TradingView Indicators For Scalping and Day Trading

Listing Down Some Top-Rated TradingView Indicators

In brief, the following as some of the leading TradingView indicators on the markets.

• Volume Profile HD Indicator
• RSI Indicator
• Ichimoku Clouds
• Anchored VWAP
• Auto Fib Retracement
• Footprint Charts
• Bollinger Bands
• SuperTrend Indicator

An advanced version of the popular Volume Profile tool, Volume Profile HD is an indicator meant to provide details pertaining to trading volumes at different price levels. This indicator provides you with a visual representation of the market by volume at different price levels – and within your preferred time frame. Most traders turn to this indicator to identify notable resistance levels and key support points in a bid to make informed moves.

How It Works

This TradingView indicator works by calculating the volume created by different trading activities at different trading hours and different trading circumstances. Through this information, the tool then creates a visual representation on the price chart normally providing you with an idea of where most traders in the markets are concentrating their efforts on. Using this data, it is possible to identify key support and resistance points.

The indicator boasts a myriad of features including Value Area and Point of Control both which come in handy in helping you identify reversal points among other areas of high significance.

Some traders often use the Volume Profile HD indicator alongside other indicators such as Fibonacci Levels and Moving Averages. When used in combination with Fibonacci Levels, the indicator can help in the identification of key levels in the market. And when used with the latter, it helps in the identification of crucial entry/exit points in the markets.

Known in full as the Relative Strength Index indicator, this tool is often used to identify oversold or overbought stocks. As a momentum oscillator, it measures the speed (velocity) of momentum and rates it on a scale of 0 to 100.

Normally, when an asset has an RSI of over 70 it tends to be overvalued. On the contrary, stocks rated under 30 tend to be undervalued.

How it Works

The RSI indicator is used by both day traders and swing traders. Swing traders often use it along with a daily time frame while day traders use it on the 30-minute or 5-minute time frames.

Once applied to the TradingView charts, this indicator creates a purple box spanning the 30 to 70 range (on a scale appearing to your right). If the RSI rises above the purple box, it means that the asset is oversold – and the opposite is true for underbought assets.

This indicator also has a moving average line plotted with it. This comes in handy in helping you identify various trend shifts. This gives you a feel of the momentum and lets you know when a shift in the momentum is about to take place.

The RSI Indicator is often used in combination with other indicators such as the Fibonacci retracements, volume profile, and Ichimoku clouds among others.

This is yet another one of the popular indicators on the TradingView line up. In fact, this is not a single indicator but rather a collection of various technical indicators that work together to help you identify trend direction and support/resistance levels. The tool accomplishes this by capturing multiple averages and using them to plot on a chart.

The indicator gets the name “cloud” from the fact that it uses various market dynamics to create clouds of data in an attempt to predict where the stock may hit a support or resistance point in the immediate future.

How it Works

The Ichimoku Clouds is a trend-following indicator that relies on multiple moving averages and a “cloud” of data. Whenever a green cloud forms, it suggests that an uptrend is about to kick in. On the contrary, a red cloud suggests it’s time for a downtrend.

The indicator also comes with baseline and conversion lines whose crossovers can be used to identify potential entry and exit points. These lines bear a close resemblance to the lines you would find on the 26EMA or 9EMA, which are other indicators commonly used by traders.

Originally, this indicator was created by Goichi Hosoda, a Japanese newspaperman. It stands out thanks to its ease of use and the fact that it provides numerous data points compared to the typical candlestick chart.

Timing is everything in the world of trading especially if you are a day trader. And what better way to take advantage of market timings than through the Anchored VWAP indicator? This technical analysis tool calculates the average price of an asset and weighs it against its trading volume over a given period of time.

In particular, the Anchored VWAP indicator allows you to anchor it to a specific point in time such as the low, high, or opening period of the day. This enables you to get precise analytics along with actionable data.

How it Works

In a nutshell, the anchored VWAP technical indicator gives you a comprehensive look at the markets with regard to its time frame and volumes. As a trader, all you'll need to do is set this indicator to a specific anchor point e.g., at a swing low or a swing high.

One point worth noting is that, when choosing an anchor point, it is crucial to find a level that’s relevant to your style of trading and also gives you a good reference point for your price action. You can also adjust the point in line with the changing market conditions ensuring that it remains aligned with the prevailing price action.

If you have been trading for long enough chances are that you're familiar with the Fibonacci retracements tool that is commonly used to determine support and resistance points. The Auto Fib Retracement indicator, or simply Auto Fib, is just an advanced version of the original Fibonacci retracement instrument. The major difference is that Auto Fib does everything for you, you need not explicitly set the peak and minimum points for it to work.

The built-in indicator is really easy to use and makes good use of the ratios and retracements that the original Fibonacci is known for to help you identify trading opportunities within long-term trends.

How It Works

This indicator works by automatically plotting Fibonacci levels on the TradingView charts. This comes in handy in helping you identify some of the major support and resistance zones to watch out for based on various Fibonacci ratios.

In the conventional world, traders have to draw their own Fib lines manually – an art that takes time to master. With the Auto Fib indicator, you get to save time and also enjoy the flexibility of viewing your retracement levels on multiple time frames.

What’s more, the indicator gives you the flexibility to your depth to accommodate larger numbers especially if you notice the tool is drawing the lines too close to the prevailing price points. Other than TradingView, this indicator is also available on TrendSpider.

This is yet another volume-based indicator that is known to cater to the volume of market orders implemented on the buy and sell sides of the order book. What's more, this indicator contextualizes the individual volume of each bar thereby helping you visualize the market conditions.

One side of the candle on the footprint chart shows you the number of shares sold at a given moment and the price point in red. The other side shows the number of shares bought within that particular candle as well as the price in green.

How It Works

This indicator works by calculating orders executed by assessing changes in volume against price movement. The orders are then pooled into their corresponding category also known as the "tick bucket."  Each asset is placed to the nearest "tick".

For example, volume changes on a price of 9.3 will be recorded as belonging to a tick of the nearest whole number (in this case, 9).

Generally, the footprint chart depicts the depth of the market helping traders visualize how specific stocks are performing. This also helps one understand the order flow and this in turn helps you understand the market in unique ways. The built-in "order flow imbalance" functionality comes in handy in helping you pinpoint aggressive order imbalances. Which, in turn, provides you with a clear picture of how the markets are being executed on the order book.

The Bollinger Bands technical analysis tool or simply BB was created in 1980 and is mainly used to visualize volatility changes in the stock markets. The indicator uses three bands namely the lower band, middle, and upper bands. The parameters of these three bands are a 20-day SMA with a standard deviation of 2 for the upper and lower bands.

As volatility increases, these bands tend to become wider – and likewise, a decrease in volatility is characterized by a narrower gap between the bands.

The bands adjust automatically thereby helping traders understand market volatility in real time and also identify any potential extremes.

How It Works

This is a relatively straightforward indicator that folks on TradingView can use. Basically, when the market price breaks through or moves toward the upper band, it creates the impression that the stock is overbought. 

As such, this would be a nice time to sell the security – of course, vice versa also applies. That is, if the price advances downward or even breaks through the lower SMA band, that particular stock is oversold and, therefore, this might be the right time to buy.

When used judiciously, the Bollinger Bands can provide you with great insights regarding the shifts in volatility especially if frequently traded securities. However, for best outcomes, the indicator should be used in conjunction with other indicators and analyses for a greater degree of accuracy.

Based on the Average True Range (ATR) market volatility indicator, the SuperTrend is a trend-follower. It combines the volatility-detecting benefits of an ATR with its built-in, advanced trend-detection capabilities. As such, it can be relied upon to keep tabs on notable changes in trends and also as a way to place stops in choppy markets.

This indicator is normally overlaid on the conventional TradingView chart with its plots indicating the current trend. What's more, this indicator can be used on different time frames – intraday, daily, weekly, etc.

How It Works

This technical indicator assesses the price range of a security over a period of time in order to understand its volatility. This way, it helps you easily take note of bullish/bearish market trends which can be crucial for making decisions in the fast-paced world of day trading.

The tool also comes in handy as a risk management tool thanks to the fact that it combines trend analysis with volatility analysis. One can use its signals to manage their open positions effectively or to set stop-loss orders.

Overall, SuperTrend is designed to help you make firm decisions. And although there are times when it may generate false signals, it’s ideal to use it in combination with other indicators such as the RSI, Parabolic SAR, and MACD.

Conclusion

TradingView is home to a wide range of indicators – both free and paid. Selecting the perfect one should entirely be based on your trading style, risk appetite, and individual preferences.

It is also important to consider your preferred market conditions, time frames, and the kind of data you expect from your chosen indicator. Sometimes, you need to experiment with different ones to determine which one works best for you.