When you day trade you need to put your sentiments aside. So to do so you need to find most probable trade and that could be possible only using technical indicator. Now the question is "which technical indicator to choose?". I normally trade using RSI and Candlestick 2 Min. Chart on Nifty Index. I mostly trade options and according to my strategy RSI is best fit to find most probable trade. Keep in mind that no indicator is perfect so you just need to maintain your win/loss ratio around 60% and that would be good enough. Even if you achieve 50% w/l ratio that would also take you in the profit zone.
Now, what about stop loss? Of course, to protect your losses you need to and you have to maintain strict stop loss. It's completely up to you but when I trade options I put 5 rupee stop and profit if I get 10 rupees move.
Now have a look at chart below.
In the chart I have drawn 2 green circles. 1 in the candlestick chart and another circle in RSI indicator. To read single you first have to see that whether RSI is in overbought/oversold position. I normally prefer to trade when RSI go above 80/85 and below 20 for sell and buy respectively. Now, wait for the signal being generated in candlestick chart. If signal already been generated before few minutes then initiate trade and trail your stop loss when you enter in profit zone.
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