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Best Time Frame for Intraday Trading

Best Time Frame for Intraday Trading

Intraday trading is equivalent to hustling continuously. Wondering why? The answer is simple; it requires you to keep an eye on the market consistently. It is because the buying and selling happen on a single day and with rapid price fluctuations. So now, amidst all the hustle, there has to be the best time frame for intraday trading that has higher chances of reaping profits.

“The two most powerful warriors are time and patience.”

And intraday trading requires both. First, it requires strategic planning with patience and then entering the market at the right time.

With the market moving every second, it is often difficult to make profits the entire day on a particular stock. So the volatility will be higher at one time and not for the others.

So now, apart from normal share market timings let us look at the best time frame for intraday trading.

Which Time Frame is Best for Intraday Trading?

The efficiency of trading differs with each hour or, let’s say, each second in the case of intraday trading. Therefore, if you are an active intraday trader, it is essential that you choose the right intraday trading time frame that will allow you to make the best out of the trading efforts rather than just waiting around.

It depends on the strategy and also the goals that a trader is aiming for.  It is always better to strategically invest your time.

A lot of research has suggested that the best time frame for intraday trading is usually between 9:30 am-10:30 am.

If you are a beginner, it is always better that you observe the market for the first 15 minutes and then start trading.

The first 15 minutes are good to keep an eye on how the stock market is building in confirmation of the news, reports, announcements, etc., of the previous night and also early morning.

The initial hours of the day usually show high volatility, ensuring that it is the best time frame for day trading.

Some people often jump to conclusions based on previous news without any research. It is best to refrain from that.

While it can prove beneficial at some times, it can also work like throwing a bait without even looking at the target.

The early hours are beneficial not because of volatility but also high liquidity. Therefore, there are higher chances at the beginning of the market that you will be able to enter and exit quickly.

Note- There is no solid rule that you have to follow these hours only. Every trader might have a time that he/she thinks is suitable. Some traders also work on weekly targets, like trading on a Monday for better returns.

Which Time frame Chart is Best for Intraday Trading

Technical analysis plays an important role when we talk about intraday trading. Therefore, it is essential not to look just at the time frame but also at the possible factors that will help you make the right decision.

It is often advisable to look at the daily charts when you are doing intraday trading. For example, you can look at the previous day’s trend of a particular stock and then make your decisions accordingly.

If a stock is showing a bullish movement on the daily charts for a longer time, there are higher chances that you should refrain from taking the selling side of this movement.

For example- You want to buy the shares of Tata Motors, so you apply the daily chart type and see a continuous bullish trend, you can thus assume that the stock is showing good potential.

Apart from this, you can also look at the best candlestick time frame for day trading. So let us have a look at how you can utilize it for the best outcomes.

Best Candlestick Time Frame for Day Trading

If we talk about the best candlestick time frame for day trading, the most commonly used time frame charts for intraday trading are the 5-minutes candlestick chart and the 15-minutes candlestick chart.

The candlesticks have four points that are commonly called OHLC (open high low close). The time frames depend on the chart that we choose.

In the 5 minutes trading chart, a trader can view the open, close, high, and low of the previous 5 minutes. This is the best strategy for day trading as it gives a general about how volatile the market looks like.

Let us understand this clearly. If the opening price, i.e., the lower part of the candle, starts at 10:30 am, then the closing price will be around 10:35 am.

Since intraday trading works on fluctuations, rapid price changes studied for shorter durations can reap great results.

Apart from this, you can also make use of the hourly charts. Since it records the price fluctuation of each hour, it is often used by day traders. So, in the case of the hourly candlestick, you get the data for the previous one hour with the help of candlesticks.

In the end, the time frames also depend on the goals and risk appetite of the trader. Therefore, it is important to strategically plan the best time frame for intraday trading and then trade accordingly to get the best results.

Conclusion

The best time frame for intraday trading, you can pick the early trading hours and the chart that is the most suitable for you. But since day trading is sensitive to time, therefore, doing it at the early hours or at the best time of the day can help you in maximizing your gains without a doubt!

If you wish to start intraday trading, then open free trading account online with Choice today and start trading!

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