A:

Several momentum oscillators that are effective in daily or weekly trading are also effective in intraday trading, though not all. Most momentum oscillators have adjustable time-period inputs, but their interpretation remains the same whether you are measuring hours or months at a time.

Stochastic oscillators are very popular among day traders because they are built to safeguard against false signals. False signals are damaging to any trading strategy, but day traders are perhaps most susceptible. Stochastic oscillators measure a price's relative position to recent highs and lows, assuming that trading occurs near the recent high during an uptrend and near the recent low during a downtrend. If you are concerned about false signals, a slow stochastic could be an effective tool.

The volume oscillator can also be used in day trading, but it may be limited based on your trading software because it relies so heavily on continuous inputs.

The ultimate oscillator was designed by Larry Williams to address problems with using an oscillator over different periods of time. The three cycles of the Ultimate Oscillator can be adjusted for intraday use, and trading signals can be generated based on the divergences between the oscillator line and the price action.

There is some danger in treating day trading as though it were fundamentally different than more traditional trading – indeed, the proliferation of get-rich-quick schemes centered around day trading prey on such a concept. Day trading may be more complex and more volatile than traditional trading and investing, but its characteristic liquidity and arbitrage-heavy activity is just located on an extreme end of the same spectrum.

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