Short-term day traders need to have a quick, reliable method for tracking the intraday pulse of the market. There are many times when a widely watched index like the Dow Jones Industrial Average, the S&P 500, or the NASDAQ Composite could show a large gain or loss in one direction, when in reality some important market internals are telling a different story. When the panic reaches an extreme, it is usually a sign that the end of the move is at hand, and the market should do just the opposite. When a short-term trader knows what to look at, you will be able to use other people's panic as an opportunity to cash in.
There are a handful of market gauges that will tell you which direction the intraday market sentiment is pointing in and when it is about to change. When these internal market measures are used in conjunction with charting, you will be able to judge quickly on which side of the market your best risk-reward ratio lies. These intraday timing tools provide the first green lights for entry and exit.
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