Do you know that intraday trading time is very important part for intraday trading? Intraday trading time analysis is the study of understanding the intraday trading time frame and then working out on how to place intraday trades accordingly.
Daily charts are the most commonly used charts which represent the price movement for one day interval. It is beneficial for analysing short and medium-term time periods; for Intraday trading, most of traders prefer hourly, 15-minute, 2- minute, 5-minute and tick -trade charts. Here we will briefly discuss on this time frame which is powerful technical analysis tool for intraday trading.
Intraday Trading Charts Time Frame
These charts are popular among intraday trader, they help to understand the movement of the prices between the opening and closing bell of the daily trading session. Here are the very common charts.
#1 Intraday Hourly Charts:
Hourly intraday charts depict price movement of a certain time duration. These reflects detailed information within the confines of a single trading day. Each candle represents the opening, closing, high, and low of every hourly interval for the time period being analysed. Each of the hourly candles indicates the price movement noted at every hourly interval.
#2 15- minute charts:
The 15-minute charts are useful for an hour or few sessions of trading. This chart shows open, high, low, close of price movement of stocks for 15- minutes intervals. These charts are beneficial for identifying short-term trends in the market.
#3 Two-minute and Five- minute charts:
The time frame for analysis can range from few trading minutes to few trading hours, which is the interval of price that are considered, for example the 2-minut chart plots the open/high/low of the stock price at 2-minute intervals. 2 – minute and 5 – minute charts are very commonly used by the intraday traders as it gives signals of breakout (very short-term basis).
#4 Tick Trade Intraday Charts:
Tick is a price point which occurs in a millisecond, microsecond, or in a minute. This type of chart can be useful only if the security has very high levels of liquidity and also it shows distinct trends in the very short term. This type of chart represents every trade that executed on the stock market. In addition, this type of chart is used by expert intraday traders who trade with large volume and small spreads.
Intraday traders use the different time frames for different intraday trading strategies and also based on their risk capacity & their expert levels.