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Which time frame to use for intraday trading analysis

One our subscribers recently asked us this question: "Which time frame do you prefer between the 5-minute and 15-minute candlestick pattern for intraday trading?"

Here is our answer.

When you find a stock that is moving, either gapping up, or running here is what to we recommend doing:

  • Look at the daily chart to see what trend has been developing over the past 3 - 6 months.
  • Consider entering if price has been in a consolidation and/or uptrend. Be caution if price has been in a downtrend. It might be just a bearish pullback.
  • Then shift to smaller time frames depending on your trading strategy.

DAY TRADERS

Shift to 1-minute chart:

  • See if there is a pattern development, such as flags, pennants, triangles.
  • Identify the area of support/resistance and make sure price remains above support.
  • Look at volume decrease during consolidation patterns.
  • Enter at support, or after breakout.
  • Exit at resistance, if supports fails, OR simply around lunch time (EST). Don't hold the stock overnight.

SWING TRADERS

Shift to 10-minute chart and do the same thing:

  • See if there is a pattern development, such as flags, pennants, triangles.
  • Identify the area of support/resistance and make sure price remains above support.
  • Look at volume decrease during consolidation patterns.
  • Enter at support, or after breakout.
  • Shift back to the daily chart, identify upper areas of resistance.
  • Exit at resistance.
  • Hold the stock for 2 to 15 days.

POSITION TRADERS

Shift to hourly chart and do the same thing:

  • See if there is a pattern development, such as flags, pennants, triangles.
  • Identify the area of support/resistance and make sure price remains above support.
  • Look at volume decrease during consolidation patterns.
  • Enter at support, or after breakout.
  • Shift back to the daily chart, identify upper areas of resistance.
  • Exit at resistance.
  • Hold stock for 1 to 12 months.


Good Trading!


Trading Risk Disclaimer

All the information shared is provided for educational purposes only. Any trades placed upon reliance of SharperTrades, LLC are taken at your own risk for your own account. Past performance is no guarantee. While there is great potential for reward trading stocks, cryptos, commodities, options, forex and other trading securities, there is also substantial risk of loss. All trading operations involve high risks of losing your entire investment. You must therefore decide your own suitability to trade. Trading results can never be guaranteed. SharperTrades, LLC is not registered as an investment adviser with any federal or state regulatory agency. This is not an offer to buy or sell stocks, cryptos, forex, futures, options, commodity interests or any other trading securities.

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