Top 5 Affordable Trading Indicators for Consistent Returns  

Technical trading involves analyzing trends, price action, and many other data points in detail. Relevant data and easily digestible information are essential for making informed, time-sensitive decisions. That’s where trading indicators come in.

Moving averages (MA), relative strength index (RSI), volume-weighted average price (VWAP), and other single indicators provide the insights you need. Individually analyzing single indicators is outdated, however.

The best trading indicators today draw from multiple datapoints, so you can have more comprehensive information readily available. These give you what’s necessary for trading in today’s information-heavy and fast-paced markets. Here are five of the best affordable trading indicators, to help you trade for consistent returns order after order.

1. Price Action Confluence Indicator

Understanding where price action is heaviest can help predict when markets will be most reactive. A downswing to a price level might result in a sudden upswing, and vice-versa.

The Price Action Confluence Indicator brings together multiple price-action indicators, identifying zones of confluence where market reactions are most likely. The indicator draws on the highs, lows, body highs and body lows, to develop zones where there has been a lot of action. Each zone includes the number of hits at that level, and the last time that level was hit.

Data from the Price Action Confluence Indicator can be customized in several ways: bars enabled, hits enabled, days to load and time filter. Set it up however works best for you.

Who It’s For: Price action is foundational to many technical trading strategies. Most traders would do well to have this information, although some will want the price action combined with other types of signals.

2. Key Levels Confluence Indicator

The Key Levels Confluence Indicator combines price action with other indicators, for a more well-rounded view of where markets may be most active.

The indicator draws on the opens, closes, highs, and lows of previous days, and it also includes Fibonacci levels, whole numbers, current-day levels and pivots. Of course, you can enable or disable indicators as is suitable for your trading strategy.

These data points are specifically drawn from daily charts and numbers, which can then be used for inter-day swing trades or intra-day day trades.

Who It For: The aptly named Key Levels Indicator brings together some of technical trading’s most commonly used data points. For most active technical traders, this is perhaps the most important of the five affordable technical analysis indicators listed here.

3. First Touch Signals Indicator

The First Touch Signals Indicator specifically focuses on moving averages (MA). Unlike the aforementioned two confluence indicators that show you where separate data points converge, this is a signal indicator that alerts you when the price frist touches a specific point — the moving average.

Basing trades off of moving averages is a standard and widely used concept, but everyone has their own version of this that they prefer. You can customize the First Touch Signals Indicator according to your preferences. The moving average period, moving average type, and bar count needed to determine a trend can all be adjusted, along with other settings.

Once the indicator is set up, you’ll get an alert whenever price action first touches the MA after establishing a trend. You can then compare this with other indicators (e.g. the Key Levels Confluence Indicator), or immediately place an order based on touching the MA.

Who It’s For: The First Touch Signals Indicator is most useful to technical traders who base decisions on moving averages. If you day trade or swing trade based on MAs, this indicator is a must-have.

You might also want this if you use a weighted dollar cost average (weighted DCA) strategy based on moving indicators. Alternatively, the signal can help ensure longer-term traders when an equity that’s been held for months or years touches a 200 or 300 MA.

4. Best Stochastics Indicator

According to those who use them, stochastics are one of the more reliable momentum indicators. They’re based on closing price, which is thought to better confirm overbought and oversold trends than what some other momentum indicators use.

There are lots of stochastic indicators available. What makes the Best Stochastics Indicator the best is the level of stochastic-related detail it can provide.

Like standard stochastics, the Best Stochastic Indicator bases its information on the most recent close, lowest and highest recent prices, and the 3-day simple moving average (SMA). You can then customize advanced plotting options, include multiple timeframes, choose your signal types, and set up alerts that you decide. This is far more information than a free stochastics indicator will typically provide, and the Affordable Indicators version is truly affordable starting at $95.

Because it’s based on recent action and the 3-day SMA, stochastics are probably most helpful to short-term swing traders — think those who hold trades between 2 days and 2 weeks.

Who It’s For: If you’re a momentum trader, try using stochastics in your decision-making. If you already understand and use stochastics, see how much easier and more comprehensive the Best Stochastics Indicator is.

5. Support and Resistance Suite

For traders seeking an all-encompassing solution, the Support and Resistance Suite combines several indicators into one suite. The included indicators are:

• Price Action Confluence Indicator
• Key Levels Indicator
• First Touch Signals
• Ichimoku Cloud Signals (uses 5 plots)

With these four indicators in one suite, you have a complete trading system that signals when price reaches areas where a strong reaction could be expected.

Who It’s For: The Support and Resistance Suite is most helpful to technical traders who draw upon multiple data points, and who are experienced with each of these indicators. Consider it if you want more information when making decisions, and want to ensure you’re immediately aware when decisions may need to be made.

Upgrade Your Trading Game

Every technical trader today needs software, but that software doesn’t need to be expensive. Depending on your trading style and level of knowledge, any one of these affordable trading indicators could help you up your trading game. Download one today, and you can be making faster and more informed decisions tomorrow.