How Do You Trade a 15 Minute Chart? - Article (2024)

FAQs

How do you trade on a 15 minute chart? ›

Here is how. Let the index/stock trade for the first fifteen minutes and then use the high and low of this “fifteen minute range” as support and resistance levels. A buy signal is given when price exceeds the high of the 15 minute range after an up gap.

For day trading, 15-minute charts and 30-minute charts are the best. 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 is the best.

Open a new chart, set the time period to 15 minutes. Load 3 EMAs (exponential moving averages) – the 5, 10, and 50 EMA. When price and the 5 and 10 EMA lines all cross above the 50 EMA line, buy. Or, conversely, when they all cross the 50 EMA line, sell.

If you are a seasoned trader, trading within the first 15 minutes might not be as much of a risk. For beginners, it's recommended to wait until 9:30. The reason behind this is simple; in the first few minutes of the market opening, stocks are likely reacting to the previous night's news.

The 15-minute MACD gives a buy signal when the fast MACD leg (12) crosses the slow MACD leg (26) upwards. The 15-minute MACD chart gives a short sell signal when the fast MACD leg crosses the slow MACD leg downwards.

You use the 10 A.M. rule, and wait until after 10 A.M. for the right forex stock investing time to buy the stock. If the forex stock makes a new high for the day after 10 A.M., then, and only then, should you trade the stock. Of course, you will use stops to protect yourself, like you would on any trade.

Although you will be unable to open a brokerage account on your own if you are under the age of majority, you can work with a parent, guardian, or trusted adult to open a custodial or joint account that will allow you to begin investing.

Key Takeaways

The closest thing to a hard-and-fast rule is that the first hour and last hour of a trading day are the busiest, offering the most opportunities, while the middle of the day tends to be the calmest and most stable period of most trading days.

Trading On a 15-Minute Chart

For some day traders, a 15-minute chart is a preferred choice for identifying intraday patterns and detecting key entry points. This time frame provides traders with proper insight into support and resistance levels and allows them to cash in on major intraday price movements.

What is the 15-minute rule in stocks? ›

The rule of thumb is this: If a stock gaps down below the stop that has been established, wait for the first 15 minutes (up to 9:45am EST) to trade before doing anything. Then place a new protective stop just under (adjust this amount for the volatility of the issue) the low of that first 15 minutes of trade.

In general, most traders scalp currency pairs using a time frame between 1 and 15 minutes. Whilst there is not really a "best" time frame for scalping, the 15-minute timeframe does tend to be the least popular with most Forex scalping strategies. Both 1-minute and 5-minute timeframes are the most common.

Periods between 9 and 11 are favored by day traders and scalpers, including those who trade in 5 min, 15 min chart, and so on up to hourly timeframes. The default RSI setting of 14 is widely used by medium-term swing traders. Periods between 20 and 30 are chosen by long-term traders and investors.

The best stochastic settings for a 15-minute stock chart is generally a 14-period %K (fast stochastic line) and a 3-period %D (slow stochastic line) with settings of 14,3,3.

The best Moving Average for 15 Min Chart are 8 MA and 13 MA.

The 20 EMA is the best moving averages to use in the 15-minute charts because the price follows it most accurately during multi-day trends. In other words, you can easily identify the trend from there.

Periods between 9 and 11 are favored by day traders and scalpers, including those who trade in 5 min, 15 min chart, and so on up to hourly timeframes. The default RSI setting of 14 is widely used by medium-term swing traders. Periods between 20 and 30 are chosen by long-term traders and investors.

As a general rule in short-term trading, you want to set your sell stop or buy stop within 10% to 15% of where you bought the stock or initiated the short. The idea is to keep losses manageable so gains will be considerably more than the inevitable losses you incur.

Trading On a 15-Minute Chart

For some day traders, a 15-minute chart is a preferred choice for identifying intraday patterns and detecting key entry points. This time frame provides traders with proper insight into support and resistance levels and allows them to cash in on major intraday price movements.