Intraday Trading Indicators: Reddit's 4-Indicator Framework vs. Traditional Approaches

The Reddit post presents a systematic 7-step framework for evaluating intraday indicators, emphasizing that effective indicators must reduce noise rather than add complexity to charts[1]. The author recommends maintaining only four core indicators:

1. Structure
   - for market geometry and swing analysis
2. Trend Strength
   - measuring conviction and directional bias
3. Volatility Filter
   - managing market noise and identifying optimal conditions
4. Momentum Shift
   - detecting directional changes and potential reversals

The framework stresses that ICT (Inner Circle Trader) concepts are only valuable when paired with simple filters and clear bias[1]. Community discussion reveals several key perspectives:

• CatsOnARollercoaster
  provided a comprehensive Medium guide with screenshots for practical implementation
• grimmjoww1983
  raised concerns about potential commercial bias, accusing the author of selling indicators
• hundredbagger
  argued strongly that VWAP (Volume Weighted Average Price) is the single most important indicator
• Trust_da_Candle
  shared a profitable setup using MA 20/200, volume analysis, and price context
• uppinthepunx
  sought clarification on the specific momentum shift indicator implementation[1]

TradingView’s indicator ecosystem supports the 4-indicator framework with sophisticated tools:

: Automated identification of swing highs/lows, Break of Structure (BOS), and Change of Character (CHOCH) in real-time[2]. These provide the foundational market geometry analysis essential for intraday decision-making.

: ADX (Average Directional Index) serves as the primary trend strength filter, often combined with other indicators for confirmation[3]. Modern implementations integrate multiple timeframes and dynamic thresholds.

: Bollinger Bands and Keltner Channels work effectively to identify squeeze patterns and breakout opportunities[4]. These tools help traders avoid choppy market conditions and focus on high-probability setups.

: RSI and MACD divergence detection systems identify momentum shifts and potential reversals[5]. Contemporary indicators incorporate volume confirmation to validate signals across all categories.

Modern TradingView indicators increasingly integrate multiple components into single tools, providing comprehensive analysis while maintaining chart clarity[6]. This trend aligns with the Reddit framework’s emphasis on noise reduction.

The Reddit framework and TradingView capabilities show strong alignment in principle but differ in implementation emphasis:

• Both approaches prioritize noise reduction and signal clarity
• Structure analysis forms the foundation in both frameworks
• Volume confirmation is recognized as essential across indicator types
• Multi-timeframe analysis is implicitly supported in both approaches

• Reddit community debate between single-indicator (VWAP) vs. multi-indicator approaches
• Traditional reliance on moving averages vs. framework’s emphasis on structure and momentum
• Commercial concerns raised by community members regarding indicator promotion

The framework’s emphasis on pre-entry utility and regime performance addresses common trader pitfalls of over-optimization and indicator redundancy. The community’s VWAP advocacy highlights the ongoing tension between simplicity and comprehensiveness in trading system design.

• Over-reliance on any single indicator (including VWAP) without proper risk management
• Commercial bias in indicator recommendations may lead to suboptimal tool selection
• Framework complexity may overwhelm novice traders despite its simplification goals

• Modern integrated indicators can implement the 4-indicator framework efficiently
• Volume-weighted approaches can enhance traditional momentum and volatility indicators
• Multi-timeframe structure analysis provides robust foundation for intraday strategies
• The 7-step evaluation criteria can be applied to assess new indicator developments

The framework’s emphasis on emotional clarity and risk sizing addresses psychological aspects often overlooked in purely technical approaches, potentially providing a more holistic trading methodology.