Technical indicators are mathematical equations that use price data, including the opening price, closing price, price highs and price lows (OHLC). They are displayed either on top of price, known as overlays or beneath the candlestick chart, known as underlays.

Technical indicators can be used in day trading any market. Popular short-term trading markets, where technical indicators can be used include forex trading, commodity trading, indices trading and are very popular with crypto traders.

As a day trader, your career revolves around making short term trades and taking some quick gains.

This can be very profitable for experienced traders and a nightmare for inexperienced traders.

The difference between experienced day traders with the inexperienced ones is that the former have mastered key strategies of trading. Some have expertise in fundamental trading while others are experts in technical analysis.

Here is the list of best day trading indicators:

1. Relative Strength Index

The relative strength index (RSI) can suggest overbought or oversold conditions by measuring the price momentum of an asset. The indicator was created by J. Welles Wilder Jr., who suggested that the momentum reaching 30 (on a scale of zero to 100) was a sign of an asset being oversold—and so a buying opportunity—and a 70% level was a sign of an asset being overbought—and so a selling or short-selling opportunity. Constance Brown, CMT, refined the use of the index and said the oversold level in an upward-trending market was actually much higher than 30 and the overbought level in a downward-trending market was much lower than 70.

2. Moving Averages

What is the moving average indicator? Anybody who has looked at a price chart will know that prices fluctuate wildly. The moving average attempts to smooth out this price action by taking the average price over a rolling number of periods. The result is smooth line that tracks behind the candlesticks or price bars, overlayed on your chart.

3. AVERAGE DIRECTIONAL INDEX (ADX)

The Average Directional Index (ADX) is a very important indicator used by traders to identify a trend. The Average Directional Index is derived from the plus directional movement (+) and the minus directional index.

4. Average True Range (ATR)

What is the ATR indicator? The Average True Range can be written as a single number or presented on the chart as an underlay, tracking how the figure has changed over time. It shows the average number of points a market has moved over a certain time period. The typical setting is 14, meaning it measures over 14 periods.