Best Time Frame for Intraday Trading With Major Reasons 2024 (2024)

When it refers to Intraday trading, the old saying “small is better” is often true. In fact, it is better to confine Intraday trading to a few important hours rather than buying and selling stocks throughout the trading day. So traders generally look for Best Time Frame for Intraday Trading.

This is because traders who engage with stocks, index futures, and ETFs have found that committing one to two carefully planned hours every day to trading has remained to be more profitable.

Introduction

Many different time frames can be used to create graphic trading charts. Some even employ measures that aren’t time-related, including the number of deals made or the price range of the transactions.

It can appear to be an overwhelming collection of options. Picking the optimal time frame or other variable for a specific trading style and kind of asset becomes quite straightforward if you trade sensibly.

What is the Best Time Frame for Intraday Trading?

Long-term intraday traders will benefit greatly from determining the appropriate time frame. Targeting these hours will help you maximise your efficiency because they are known for major market activity.

Those who day trade for the entire day, on the other hand, have very little time for other things and receive minimal compensation. If you trade outside of the ideal time window for intraday trading, even skilled intraday traders can lose funds.

This raises the question of What is the Best Time Frame for Intraday Trading?Between 09:45 and 10:45 a.m. or Between 02:30 pm to 03:15 pm , is the answer.

Trading in First 15 Mins

Intraday trading is usually accomplished within one to two hours of the stock market opening. In India, meanwhile, most share market trading platforms begin showing rates at 9:15 a.m. So, why not begin at 9:15 a.m.? Trading within the first 30 minutes may not be as risky if you are a professional trader.

It’s best to wait till 09:45 am if you’re a newbie. The reason for this is simple: equities are generally responding to the previous night’s information in the initial few minutes of the market opening.

Sharp price fluctuations in one direction are usually viewed in trades. Individuals are making their best assumptions based on previous news, which is known as the “stupid money phenomenon.”

Trading at the Opening and Closing of the Market

Volatility isn’t always a bad thing. After these initial dramatic deals, the optimal level of volatility for newbies enters the market. As a result, the hours of 09:45 a.m. to 10:45 a.m. and 02:30 p.m. to 3:15 p.m. are suitable for making transactions. Intraday trading in the first few hours after the market opens and Closing hour has numerous advantages:

• The first hour is frequently the most volatile, providing plenty of opportunities for the day’s best transactions. The first hour offers the liquidity required to enter and exit the market.
• Because liquid equities have a larger volume of trading, they are more likely to be sold off quickly.
• The opening hour of trading has been observed to have some of the greatest changes of the entire trading day.
• Due to closing People make positions for the next day.
• Please also start closing their position and it also creates volatility in the closing hour.

Note:

It can provide the strongest returns compared to other time frames during the entire day if done properly. Losses can be substantial if done poorly.

Trades take longer and happen in smaller volumes after 11 a.m. If you need extra time, you should extend the session till 11 a.m for the first half.

The approach of restricting one’s trades to the first hour, on the other hand, is more suited to day trading.

Important Points

The 9:30 a.m. to 10:30 a.m. or 2:30 p.m. to 3:15 p.m. range is not a hard-and-fast guideline that must be followed by every trader. In general, it is designed for novices, although it can be tailored to meet individual needs. It’s a good idea to think about the broad picture.

For example, in addition to using the ideal time frame for intraday trading, remembering the day of the week is another method. Because the market has traditionally tended to dip at the start of the business week, Monday afternoon is frequently a good time to buy.

Note About best time for intraday trading

Experts recommend selling on Fridays, just before the Monday drop. Furthermore, not every trader requires that the first hour be filled with activity.

Those that trade frequently during the day can opt for a shorter time range. Intraday traders who just make a few trades each day, on the other hand, can choose a larger time frame.

Experienced traders are likely to change their time frame on various days, based on how aggressive they are.

How to Experienced traders select the time frame ?

Professional traders spend around 30 seconds, if that, deciding on a time frame. Their time frame selection is unrelated to their trading method or methodology, nor to the market in which they trade.

It’s based on their unique trading style. Traders who make a lot of deals during the day, for example, may prefer a shorter time frame.

A broader time frame may be preferable for those who just execute one or two trades per trading day. Traders can change their time frame on any given day, based on how effective they are.

Does the Time Frame Really Work?

A price pattern that has relevance on a two-minute chart will likewise have that significance on a two-hour chart when analysing a time frame with reference to your trading approach. If it doesn’t, the pricing trend isn’t meaningful.

There is nothing wrong with the time frame if your trading strategy or approach isn’t profitable. Your trading method or style is wrong.

However, Time Frame is irrelevant if a trading pattern is predicated on the strength of a price change.

Conclusion

Time Frame is more important for Newbies and people who are used to it. However, risk is always there while you are trading on Intraday.

This all from our side regarding which time frame candle is best for intraday trading. Let us know your views about best candlestick time frame for day trading in the comment section.

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