Traders will frequently use a combination of fundamental, technical analysis when evaluating the direction a company’s stock price might take.
There is typically greater reliance on technical analysis when traders are interested in short term trading. Technical analysis looks at the price movement using charts in combination with technical indicators to attempt to predict future price movements.
TradingView has thousands of built-in indicators that can help you trade instruments of all kinds. Today's article will focus on fast reliable indicators that are best for trading stocks.
1. One of the most used technical indicators used in stock trading is the Fixed Range Volume Profile Indicator
This volume profile tool lets you analyse volume levels at specific price levels at specific times.
The Fixed Range Volume Profile Indicators is one of the best available because you can use it on both long-term and short-term trades, as the histogram that is overlaid on the chart signifies significant price levels based on the volume of trade. This indicator helps reveal what is happening with the stock and how its price could evolve in the future.
This indicator is essential for understanding supply, demand, and overall liquidity of stocks.
2. The Coral Trend Indicator is a famous trend indicator from the MetaTrader 4 platform, that was ported to TradingView.
The Coral Trend Indicator can be used as a replacement for a Simple Moving Average and best used in combination with a Regression Channel Indicator.
You can think of the Coral Trend Indicator as a filter. If the slope trend is up, it might be best to filter out any short entry positions, and vice-versa. If the slope is flat, both long and short scenarios might still be in play.
3. Another useful indicators when trading stocks are trend quality indicators. One of best in this category is the Trend Quality (QIndicator and BIndicator) Indicator which can help traders understand a particular stocks unique behaviors.
This Trend Quality Indicator is made up of two components; the QIndicator and BIndicator.
The QInidicator is a histogram plot graph that visualises the potential quality of a trend. The higher the green histogram bars, the more likely a positive trend will continue, and vice-versa with the red bars.
The BIndicator is the multicolored plot line above the histogram. the BIndicator ranges from 0 to 100 and indicates the strength of a trend without regard to the direction.