What Are The Technical Analyses For KLSE Intraday Trading? 

Intraday trading is a form of structured trading in which traders profit from price fluctuations in the stock market.

However, investors must analyze the technical charts incorporating price behavior and intraday trading indicators to profit from this trading technique.

Many indicators are available to help investors with technical analysis, but not all are suitable for intraday trading!

Yes, some technical indicators are particularly fit for KLSE Intraday traders who aim to balance off their investment within a day.

Let’s get started.

Technical Analyses For KLSE Intraday Trading

The most frequent technical analyses that traders may use for KLSE Intraday trading are as follows:

1. SuperTrend

This indicator is shown on the price chart, and the current trend may be identified directly by its position on the price. It is a clear indicator designed with only two parameters-period and multiplier.

So, when we create the SuperTrend indicator, we usually utilize the standard parameters. In addition, for the Average True Range, 10 is used, and for its multiplier, 3 is used. The true average range (ATR) plays a significant part in SuperTrend as it employs ATR to determine its value and signifies degrees of price volatility.

2. Volume Weighted Average Price

When trading intraday, investors need to watch the volume of the stock. Volume Weighted Average Price (VWAP) is a quantity indicator that measures the ratio of the price of the stock exchanged at a specific period to the overall volume traded at that stock.

This indicator signals a bullish trend when the stock price exceeds the VWAP. It indicates that the price is higher than the average volume and that the trend is positive. Conversely, a bearish trend is established when the price falls below the VWAP line. Traders can trade at the VWAP in the direction of the movement.

3. Average Directional Index

The Average Directional Index (ADX) indicator aids investors in evaluating the strength of a trend. The ADX indicator clearly shows traders whether the current trend has the power to continue rising or falling. Its values range from 0 to 100, and it is essential to note that the greater the number, the stronger the trend.

The ADX default look-back time is 14 periods, although this may be adjusted depending on the volatility of the stock or index. An ADX value of less than 25 suggests a weak trend, while a greater than 75 implies a significant trend.

4. On-Balance Volume

Indicators such as Balance Volume (OBV) are used to predict price movements based on changes in absolute volume. Because institutional investors are generally active, volume influences price. The On Balance Volume indicator assists traders in tracking the smart flow of money into the market and forecasting future price direction. Traders may predict a significant price increase or decrease if there is a substantial movement in OBV value.

These technical analyses can be utilized for KLSE intraday trading; however, traders should not rely just on one intraday technical indicator. Set up an intraday trading strategy that includes a mix of these indicators. Also, follow expert Bursa stock recommendations, and avoid losses in the beginning. The Learning Art provides bursa Malaysia stock tips and recommendations to aid traders with practical KLSE stock tips for their investments.