Intraday Trading Time Period Analysis

Intraday Trading Time Period Analysis

Intraday trading is the most common way of trading in stock market. As the term suggests Intraday is the day trading that means all the transactions of stocks and various financial instruments will be executed in the same day.  In other words, Intraday trading is squaring off all the positions before the market closes in order to earn profit. However, it is not as simple as it looks. Before closing of the day trader has to analyze various factors before making good returns. One of the best methods to achieve this goal is Intraday trading time analysis.

Intraday trading time analysis

In the Intraday trading time period analysis, the price movements are analyzed with the help of various charts. It is the most common practice for analyzing short- and medium-term periods.  In Intraday trading charts, the price movement is analyzed from the opening bell to the closing of the daily trading session. There are different types of charts to fulfill the need of the trader some of the best charts are discussed below for better understanding:

Hourly Charts

In this chart, the particular stock is analyzed for a specific period of time. It provides detailed information of a single trading day as one particular stock is analyzed for every hour. In one hour the high, low, opening and closing is analyzed which usually help in short-term trades and it varies from a few hours to a few days. Hourly charts are considered as bread and butter for intraday traders.

2 Minute Charts

This is one of the popular charts which is used in stock market trading as it depicts a detailed chart for the same trading day. It benefits mostly in scalping which ranges from some minutes to several hours during one trading session. It is useful for traders who are trading in highly liquid stocks and a short-term opportunity can be used with the help of a 2-minute chart.

5 Minute Charts

In these charts, the opening, closing, high and low movements are depicted in every 5-minute interval. This chart is useful in quick scalps that vary from a few minutes to an hour in an intraday training session. This chart is highly recommended for high-speed traders in the market.

15 Minute Charts

These charts show high, low, opening, and closing movements at 15-minute time intervals. These all charts are focused on one stock and are helps in proving a faster input of volatility compared to hourly charts. These are the popular tool for short-term traders who quickly move the money in and out in intraday trading. For example, at the opening of the trading day the stock can start with low or high but in middle hours the volatile rate is broken into 15- minute intervals till the last hour of trading which creates time-specific trends of stock.

Tick Trade Charts

The tick trade charts help in analyzing the stock market in a more refined way as every trade which is executed on the stock will be shown with the help of line charts. These charts are helpful for traders who are trading in high volumes. The tick trade charts show continuous ticks when the market is highly liquid.  The tick means the actual trade executed in the market at that point. Hence the upward and downward movement of the stock is immediately registered with the help of tick trade charts.

The tick trade bars create a set after a specific number of trades which helps in providing the market insight for all the major stocks in one go. Most of the intraday traders check Tick trade charts for additional point in their analysis. These charts work wonders if the trader is focusing on small spread and high volumes.

Bottom Line

The intraday trading time period analyzes the price movement of a particular stock. These day trading charts are an efficient tool in decision-making for long-term periods as it helps the traders to decide the future course of action.  The price variations are analyzed in a better way with help of intraday charts specially 5-minute and 15-minute charts. These charts provide insight into the market behavior of a particular stock in short period of time. Hence the selection of intraday charts depends on the level of trading expertise and risk appetite of the trader.

By NTA® – India’s Top Rated Day Trading Academy