Understanding Stock Market volatility is important for both day traders and swing traders. This can be best understood by viewing intraday charts. Candlestick charts are the most popular form of charts for day traders, but there are also many other indicators that can give you an edge in intraday trading.
Use this intraday trading stocks chart to discover the best stocks for intraday trading and learn about the stock charts and indicators used to carry out technical analysis and intraday trading. Use the daily charts for entry and exit points of the best stocks for intraday trading.
Profit-making and the gambit of gainful investment is a very detailed one with a lot of perspectives that alter one’s approaches. While the list of trading types is extensive, intraday trading has emerged as one of the most easily implementable speculative exercises in recent times. Before making any kind of decision, trading analysis is very important. The trading analysis allows the potential investor to go through available options and understand what works best for him/her. Intraday trading or the practice of trading in a trading instrument once or even multiple times in one day has been extensively used for making reaping short-term benefits. While analyzing the various aspects of intraday trading, one of the most commonly used methods for trading analysis is through trading charts. Various trading charts for intraday trading are used these days. The most commonly used areas mentioned:
Line Charts
Line charts are one of the most commonly used charts in intraday trading. The line charts only display the closing price. Each closing price is connected to the closing price of the succeeding day. The line chart provides a brief overview of the prices. But, this chart cannot be used in the decision-making process as it does not give an indication of the market trends.
Bar Charts
The particular charts are an extension of line charts. Bar charts consist of vertical lines that represent the price range in a specified period. Bar charts also depict the open, high, and low prices. These charts offer other useful insights into the stock and are quite easy to understand. The tick chart is a type of bar chart.
Tick Charts
Tick charts are one of the best reference sources for intraday trading. When the trading activity is high, the bar is formed every minute. In a high volume period, a tick chart offers deep insights in contrast to any other chart.
These are the types of trading analysis charts that depict a bar after a particular set of trading figures. In simple terms, a tick chart shows a bar after a pre-decided number of trades during a day. So, some charts may depict a bar after 300 trades while others may show a bar after 500 trades. This gives a pictorial representation of the frequency of trades of a specific security or stock in one day of intraday trading.
Volume Charts
In the trading analysis, volume charts are used to show the number of trades in intraday trading using line representations of volumes of trading. Two colors – red and green are used to depict the stock pricing variations. The bar color is red if the current closing price is lower than the previous closing pricing and is green if the current closing stock price is higher than the previous closing stock price.
Candlestick Charts
Candlestick charts show the open, close, high, and low prices during the trading time. Candlestick charts can be used to make decisions based on the trends, these charts are best used for short-term analysis.
These charts give a view of security pricing in the shape of candlesticks, with each candlestick denoting one day of trading. Therefore, a periodic visualization of candlestick charts lists intraday trading days as a series of figurative candlesticks denoting pricing variations and fluctuations.
Renko chart is an example of a candlestick chart.
Renko Charts
Renko chart is used to indicate the price movements. These charts are also used to identify resistance levels.
For trading analysis, Renko charts (originally developed by Japanese) are used. These charts depict the price variations in intraday trading in brick-like shapes that give a more detailed view of market fluctuations.
Now, let us look at the type of intraday charts, intraday time analysis and the importance of each chart below.
Hourly Charts
The hourly charts depict the price movement of a stock every hour. The particular chart provides very detailed information for that particular day. The hourly charts are very useful for short-term trades that last for a few hours to days. The chart displays opening, closing, high, and low-price of stock at every hour for the time period.
15-Minute Charts
The 15-minute intraday charts display the opening, closing, high, and low price of a stock at every 15-minute interval. Even this 15-minute charts are used for short-term trades, typically lasting from an hour to a few trading sessions.
5-Minute Charts
In 5-minute intraday charts, opening, closing, high, and low prices of a stock are depicted at every 5-minute interval. The particular chart is one of the most frequently used charts in the trading community. It is used by both short-term and long-term traders. The 5-minute chart is quite useful for quick scalps that last from several minutes to hours during an intraday trading session. Long-term traders use 5-minute charts to select the most optimal entry and exit points while initiating trades for a long period of time. In fact, it is highly recommended to use 5-minute charts for long-term investments in the share market.
2-Minute Charts
The 2-minute charts represent the price action of stock for 3 hours. The chart represents the opening, closing, high, and low price of a stock at every 2-minute interval. The 2-minute charts are also a popular choice among short-term traders. Short-term traders used this chart for day trades and scalping, which ranges from a few minutes to a few hours during one trading session.
Tick-Trade Charts
Tick-Trade charts are the line charts that represent every trade executed in the stock market. Every point on this chart represents an actual completed trade. In illiquid markets, lack of trades is displayed via flat line. On the contrary, in highly liquid markets, the graph consistently shows some movement and depicts increase or decrease in prices. The tick-trade charts are often used by traders for scalping and keeping track of “out of money” trades that need correction.
Always remember, the trader’s view often vary with the time period being analyzed. For being successful in intraday trading, analyzing the accurate time period is crucial, it will help you a lot in the long run.
Conclusion
Have you ever wondered what stocks to buy for intraday trading? How about the best stocks of the year? What is the chart of the day? Investing can be confusing, there are so many options, and trading stocks based on charts is just one way to ensure that you are making solid decisions. Chart of the day helps with this by giving you the best chart of the day for buying stocks through intraday trading.