How to choose stocks for Intraday Trading?

When it comes to variations and movements in intraday trading, the most helpful tools are the daily charts. These can provide all the necessary information about the stocks with indicators that show the trend of any particular stock over a definite period of time. They convey the movement of the prices from the start to the close of market. Time analysis becomes a useful tool for intraday trading as the momentum tends to shift quickly. You won't be able to comprehend the charts before the stock you put your money in goes down steeply or shoots right up. Hence, it becomes necessary for day traders to look for such charts that would help you understand the flow better - we’ve covered these concepts extensively in things to know while investing in Intraday Trading.

Moving Average

Most traders rely on the daily moving average (DMA) of the stocks. The moving average is a line on the charts that show the behavior of a stock over a period of time. These charts show the opening and closing rates of the stock. The minimum average line shows the average closing rates of that particular stock in the given interval and helps you comprehend the ups and downs in the price and determine the flow of the stock.

Bollinger Bands

These are bands that show the standard deviation of the stock. It consists of three lines - the moving average, the upper limit and the lower limit. If you seek the trading ranger of a particular stock, these help you locate the price variation of the stock over a period of time, hence, you can put your money around the observations.

Momentum Oscillators

The stock prices are highly volatile. Such variations largely depend on market situations. If a trader wants to know whether a stock would rise or fall, this is where the momentum oscillator is beneficial. It is depicted in a range of 1 to 100 and shows whether a stock would further rise or fall, helping you in determining when to buy a particular stock. It shows the right time to trade, not making you lose your chances.