What are the Suggested timeframes for intraday traders?
When traders take a position in the share market and square it off the very same day, it is termed asintraday tradingor day trading.
In this type of a share trading approach, traders look for quick in and out movement in the market.
We can buy as well as go short in the market and then close your positions before the market gets over.
Taking swift decisions
Your broker will give you many stock tipsto trade intraday positions every day.
To trade intraday, you need to take trading decisions quick and execute your orders with great swiftness.
On the other hand, you need to set your emotions aside and not overtrade the market.
When you do an intraday trading, you cannot trade with only a single time frame chart.
Technical experts look at a mixture of charts of the same stock in order to take trading decisions.
Each chart is in a diverse time frame and gives the total picture of the stock trend and movement.
The most common time frames used by traders in intraday trading, are the 5 mins, 15 mins, and the 60 mins chart.
Significant aspects to be noted:
Every trading decision is to be made on a few important factors. They are the trend of the stock along with the major support and resistance levels to enter and exit the stock.
Trading with the trend allows you profit quickly and does not hit stop losses frequently.
To spot the trend of the market, you need to make use of the 60 min chart when trading intraday.
This is the biggest time frame that you are using for a day trade and the prevailing trend of the stock can be examined from this time frame.
Next is the support and resistance levels .Support and resistance levels are major areas where there was a lot of inequality between demand and supply leading to a huge rally or a drop in price.
These are high prospect trading zones. The 15 min time frame chart is used to find out the major support and resistance levels in order to enter and exit the trade.
The use of the 5 min chart is to alter the levels to make it a bit smaller so that you do not have a big stop loss.
These three timeframes jointly let you make high prospect intraday trades in the stock market.