Best Time Frame for Intraday Trading in India | Espresso

Best Time Frame for Intraday Trading

Expert traders believe they should confine intraday trades to a few important hours of the day instead of buying and selling stocks throughout the day. Thus, if you are starting to trade intraday, you must identify the best time frame for intraday trading


Published on 01 March 2023

Which Time Frame is for Intraday Trading?

Intraday trading is not like other kinds of trading. Here, the trading activity might not be the same after an hour or second. That’s why it’s extremely important to pick the right time frame for intraday trading, especially when you actively trade through the intraday trading option. That way, you will not just get to trade smoothly but also receive positive outcomes through it.

Also, choosing the right time frame should be done carefully. As a trader, you have to check your objectives and the trading strategy that you use right before you begin the trading work. Doing so will help you use your time properly when trading and not miss out on any opportunities that you encounter.

So, speaking of the time frame for intraday trading, it has come to light that the time between 9:30 am and 10:30 am is the available for trading. This time frame is ideal for both beginners and experienced traders, and they must use this time properly. When the entire trading realm is pretty new to you, don’t just rush in and start trading.

Take around 15 minutes to check the market. Doing so will help you learn how exactly the stock market performs and how you will benefit from it. Moreover, during the 15 minutes, you should also take a look at the announcements or news the market has in-store. That way, you can keep yourself updated about the latest changes or additions taking place in the stock market.

The stock market is well-known for its high volatility, and it’s something that everyday traders take advantage of. So, when exactly can you see the high level of volatility? Well, it’s during the opening time of the trading activity.

But it’s advised that you don’t make any decisions in a hurry or by checking out all the previous information. Do a bit of research, gain proper information, and then move forward with your trading activity.

This way, you will make more profit than losses. Besides that, trading during the early hours will also provide you with high liquidity and will help you conduct your trading activity without experiencing problems.

Is it better to trade in the first half or second half?

It is tricky to answer this question. Statistically, most of the profitable trades exist in the morning half of the day. Retailers are accepting the news coming in for the day during this time.

The second half of the day focuses on trend reversal or continuation. At this time, you can use the profit you earned during the first half and make additional trades.

Choosing the intraday trading chart time frame

Several traders claim that the 5-minute and 15-minute time frames are the most preferred chart time frames for intraday trading. Many software also provides system-based 1-minute and 30-minute charts. However, they are either too slow or too volatile.

Some traders rely on a 30-minute or 1-hour time frame to make a trade. But, when making intraday profits, the most effective time frames are the two mentioned above.

Intraday traders are of two types - scalpers and day traders.

  • Scalpers: Scalpers focus on a small profit and make multiple trades. They have around 10 to 15 trades in their trading account in a day. Consequently, the time frame that they can make the most of is a lower time frame, such as 3-minute or 5-minute. For scalpers depending on any indicators in their intraday trading strategy, the lower time frame is suitable. On the other hand, if you depend on the candlestick chart patterns, then the bigger time frame is more suitable. Price action-based chart patterns require time to generate.
    Also Read: Scalping Trading
  • Day traders: Day traders are swing traders. Their focus is a single trading day. Therefore, they do a maximum of 2 to 3 trades throughout the day. After that, they follow the trend for that stock. For day trading, 15-minute charts and 30-minute charts are the offer optimal results. Day traders who use indicators in their day trading strategy can use a 15-minute or lower time frame. In the case of price action-based trading, a combination of the 15-minute and 30-minute time frames proves to be highly effective.

Things to Keep in Mind About the Intraday Trading

For intraday trading, technical analysis plays a crucial part. That's why you must not just check the time frame but also the various factors which can help you make the right decisions. It's highly recommended that you check the daily charts when conducting intraday trading. Doing so will help you trade properly without experiencing any issues.

How Do Experienced Traders Choose the Time Frame?

Experts in trading select a trading interval that is no longer than 30 seconds. Their decision is not dependent on calculations, strategy, the industry or the trading platform but on their own personal trading style.

Those traders that frequently execute multiple trades during a single day can do so quickly. On the other hand, those that take fewer trades in a day are likely to pick a longer timeframe. Additionally, some traders may switch their time frame depending on their activity level in trading.

The Best Candlestick Time Frame for the Day Trading

The Candlestick Time Frame is pretty unique in the trading realm. It’s well-known for its 5-minute and 15-minute time frame charts. This particular time frame is used by all the intraday traders out there.

Many experienced traders have pointed out that the Candlestick Time Frame is the best time frame for intraday trading. The time frame is known for its 4 main points, which are open high low, and “Close.” But many traders know these 4 points as OHLC. Here, the OHLC works differently for the 5-minute and 15-minute charts.

In other words, if you opt for the 15-minutes time frame chart, you will get to see the OHLC of the past 15 minutes quickly. This method is also the same for the 5-minute one as well. Many experienced traders who opt for the day trading time frame have claimed that the OHLC approach is extremely advantageous.

Now, you might be thinking, why is that? Well, that particular approach will provide you with a clear picture of the stock market and how turbulent the market can be. The intraday trading system can help you leverage on the right price fluctuations and also the market volatility. In return, you will make massive gains.

But that doesn’t mean you cannot utilize the hourly charts. If you’re a day trader, using the hourly chart is compulsory as it will help you stay updated about the price fluctuations taking place every hour. So, if you want information related to the past several hours of day trading, the Candlestick process will be a great choice.

How do professional traders choose a trading time frame?

Experienced traders choose a trading time frame for Intraday in 30 seconds. Their choice doesn’t depend on the trading system, technique, calculations on the intraday profit calculator, or the market. It depends on their trading personality.

Traders who make multiple trades in a day might go ahead with a shorter time frame. On the contrary, those who make only a few trades in a day might pick a longer time frame. Some traders also switch their time frame on a particular day depending on their trading activeness.

In conclusion

The best time frame for intraday, if utilized properly, can result in the strongest intraday profits as compared to other time frames during the entire day. However, if you don’t do it properly, you can incur substantial losses. After 11:00 AM, trades need more time and happen in smaller volumes. If you require more time, you should extend the time till 11:00 AM for the first half. Choosing the right time frame is extremely important for intraday trading. So, it will be better to opt for the early trading hours, which will provide you with the desired outcomes. Also, make sure to take some time to check the stock market right before you begin the trading work.

Chandresh Khona

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