Trading intraday is similar to working nonstop. You must continually keep an eye on the market. This is due to the day-to-day buying and selling and the sharp price changes. So now, in the midst of all the chaos, there must be the optimal time frame for intraday trading with the most potential for profit.
Time and patience are both needed for intraday trading. It starts with patient strategic preparation, followed by timing your market entry. It is frequently challenging to make money trading forex during the entire day because the market is always fluctuating. As a result, there will be a spike in volatility at one point but not the others. Let’s examine the ideal time period for intraday trading.
What timeframe is the best for intraday trading?
In the case of intraday trading, the effectiveness of trading varies with each hour, or let’s say, each second. As a result, if you are a frequent intraday trader, it is crucial that you pick the ideal intraday time frame that will enable you to maximize your trading efforts rather than simply waiting.
A trader’s objectives and strategy both play a role in this. It is always preferable to invest your time wisely. Numerous studies have indicated that the greatest window for intraday trading is often from 9:30 am to 10:30 am. It is always preferable for beginners to watch the market for the first 15 minutes before beginning to trade.
In order to corroborate the news, reports, announcements, etc. from the previous night and the early morning, it is wise to monitor the forex market for the first 15 minutes. The optimal time frame for day trading is during the early morning hours, when volatility is typically high.
Some people frequently draw judgments without doing any more research based only on recent news. It’s preferable to avoid doing that. It can occasionally be advantageous, but it can also function like tossing a bait without even looking at the target.
Not just because of volatility, but also because of strong liquidity, the early hours are advantageous. There are therefore more opportunities to enter and exit the market rapidly at the beginning.
Note that there is no firm rule requiring you to adhere to these hours alone. Each trader may have a period that they feel is ideal. Some traders also set weekly goals, such as trading on Mondays to maximize profits.
What chart timeframe is the best for day trading?
When we discuss intraday trading, technical analysis is crucial. As a result, it’s crucial to consider more than just the timeline and consider any potential elements that could influence your choice.
When you are engaging in intraday trading, it is frequently advised to have a look at the daily charts. You may base your judgments, for instance, on the trend of a specific currency pair from the previous day.
There are more odds that you should avoid taking the selling side of a currency pairs movement if the daily charts show bullish movement for an extended period of time.
You can also consider the ideal candlestick time frame for day trading in addition to this. So let’s look at how you can use it to get the best results.
Best candlestick chart timeframe for day trading
The 5-minute candlestick chart and the 15-minute candlestick chart are the most frequently utilized time frame charts for intraday trading when discussing the best candlestick time frame for day trading.
The four points on the candlesticks, which are known as OHLC, are present (open high low close). The time frames vary depending on the chart we select.
A trader can see the open, close, high, and low of the last five minutes on the five minutes trading chart. This is the greatest day trading method since it provides a basic idea of how volatile the market is.
Let’s get things straightened out. If the lower portion of the candle, or the starting price, begins at 10:30 am, the closing price will be at about 10:35 am.
Rapid price movements researched for shorter periods of time can produce excellent results because intraday trading relies on swings.
In addition to this, you can use the hourly charts. Day traders frequently use it since it keeps track of price fluctuations hourly. In the instance of the hourly candlestick, you thus use candlesticks to obtain data for the preceding hour.
Finally, the trader’s objectives and risk tolerance also influence the time frames. To achieve the best outcomes, it is crucial to strategically decide on the ideal time period for intraday trading before beginning to trade.
Trading charts not based on timeframes
In general, trading parameters that are not time-based should only be used with trading systems designed to do so. A 50-tick chart, for instance, can be used to develop a trading system. That particular system has a relocation that happens whenever 50 transactions have been completed.
Time is irrelevant if a trading pattern is predicated on the magnitude of a price change. Choose a chart that allows you to base it on price movement, like a Renko chart. The trader is given a clearer understanding of patterns, trends, and elements like price reversals that take place throughout the trading day.
If you prefer, you are free to use variables that are not time-based. You could find them easier to read since they are more visually appealing to you. Just be careful not to believe that any one chart style provides you a natural advantage.
How to pro traders choose a timeframe?
Professional traders, at most, take 20 seconds to select a time frame. Their decision about the time frame is not influenced by their trading strategy, system, or market. It is based on their unique trading style.
A shorter time period, for instance, would be preferred by traders who frequently place deals throughout the trading day. A lengthier time frame might be preferred by traders who generally execute just one or two trades every trading day. Depending on how busy they are trading on a particular day, traders may also change their time window.
Conclusion: what day trading timeframe is best for me?
The optimum time frame for intraday trading allows you to choose the chart that best suits your needs and the early trading hours. But because day trading is time-sensitive, doing it in the morning or at the optimal time of the day will help to give your trading strategies an edge. Just remember, everyone is different so there is no one size fits all when it comes to the best timeframe for day trading. You can always open a free demo trading account if you want to practice intraday trading and see which chart timeframes work best for you.
Self-confessed Forex Geek spending my days researching and testing everything forex related. I have many years of experience in the forex industry having reviewed thousands of forex robots, brokers, strategies, courses and more. I share my knowledge with you for free to help you learn more about the crazy world of forex trading! Read more about me.
