which time frames to watch while day trading?
New traders often wonder which time frames to watch while day trading stocks. Do you use tick charts and a five-minute chart for context, or is it better to use a one-minute chart instead? Is a 15-minute or hourly chart more effective at monitoring major support or resistance levels created over the last several days?
Intraday traders use minute charts such as 1-minute or 15-minute. Time charts can be set for many different time frames. However, if you are using the chart for active trading you will probably want to focus on short periods. If you use a one-minute, two-minute, or five-minute chart, then a new price bar forms when the time period elapses. On a one-minute chart, a new bar forms every minute, showing the high, low, open, and close for that one-minute period.
This creates a uniform x-axis on the price chart because all price bars are evenly spaced over time. Sixty price bars are produced each hour, assuming at least one transaction took place in the stock or asset you are following. One-minute charts are popular among day traders
It indicates high and low and opening and closing of five-minute duration. A five-minute chart tracks price movement in five-minute increments. Five-minute charts are used for short term as well day trading. This time frame is best for intraday trading.
The 15minute chart is beneficial for an hour or a few sessions of trading. This chart shows high and low of price movements of stocks for 15-minute intervals
One chart type isn’t necessarily better than another. Each can be traded effectively using the right day trading strategy, but traders should be aware of all types so they can determine which works better for their trading style.