Day trading refers to the practice of frequently buying and selling assets to make a profit on intraday (within the same day). Day trading involves predicting the short-term price actions while enabling traders to make a profit out of it.
With a higher risk-reward ratio, there are a plethora of factors that affect the intraday outcome. This includes the price fluctuations that can be hard at times to evaluate. That is why day traders deploy various tools and techniques to find the most favorable trading outcome.
Analyzing the price history backed by chart patterns is a well-known concept in day trading known as technical analysis. Algo trading has gained quite a popularity, where computational power is used to analyze the market and conduct trade accordingly.