Intraday trading is one of the most volatile forms of trading compared to long-term trading and investing, as it experiences severe fluctuations every second. Hence, a trader is required to carefully choose the right time frame for intraday trading.
Moreover, as a trader, you are also required to learn technical trading and optimistically implement it, considering your objectives. It will allow you to properly utilize your time while trading and take complete benefit of every opportunity.
In this article, we ve clearly and cohesively mentioned the right time frame for your intraday trading.
Which Timeframe is Best for Intraday Trading?
From a beginner;s point of view, traders must trade between 10:00 and 10:15 a.m., as this is one of the most volatile time frames. This morning timeframe is ideal for intraday transactions.
Implementing the right analysis and strategies during this timeframe will give you the best possible outcomes. You must also not forget to consider your goals while choosing the required strategies.
As recommended by experts, newbie traders should primarily observe the market for the very first hour and then start trading. It will give you confirmation of all the precious night and early morning news, reports, announcements, etcetera.
In other words, the initial hours of the day are supposed to demonstrate more volatility and, thus, considered the best for intraday trading. However, it can lead you to make wrong decisions sometimes and to book a good amount of profits. Therefore, we suggest you believe in technical analysis and crafting the strategies.
This way, you can take advantage of the right time frame and implement the right strategies to make the entry and exit into the market at the right time. It will help you book the profits.
Should You Trade in the First 15 Minutes?
The first 15 minutes of the trading day offers varied opportunities to traders. But, it also comes up with a risk factor. You have to be very careful while trading in this duration to book the profit.
At the opening time, the volatility of the stocks is generally at its peak and reacts to all the news and reports. It can lead the market to breakouts and whippy actions. Seeing the opening range, breakouts are usual and can give you a signal of direction for the day.
Therefore, you must properly watch out for the support and resistance level in the first 15 minutes of any asset. Plus, make sure to look for its target breakout, gaps, volume surges, technical levels, and more. Simply put, just dont trade randomly.
For favorable results, you can also use the wider stop-loss and minimize size to account for unpredictable open action.
Selecting the Intraday Trading Chart Time Frame
Use the 5-minute chart or 15-minute chart within your intraday trading to buy and sell the stocks. It can allow you to book more profit in the initial period.
- 5-minute Chart: It allows you to catch the short-term momentum trades, figure out the support/resistance level, and establish intraday trends. Here, you get more context than a 1-minute chart.
- 15-minute Chart: It is one of the most popular used intraday time frames that can help you capture short-term moves and filter out the noise. Here, you can clearly see the key support/resistance and trend signals.
Look for the volume and liquidity of the stocks to select the best time frames for your intraday based on your needs and requirements.
Conclusion
You can definitely better trade in the first 15 minutes of the market, as it offers the highest volatility. However, just the right timing wont let you make the profits; you also have to be proficient in analysis and strategies. Join Upsurge.club’s technical analysis course online to deepen your knowledge and skills.