Which Time Frame is Best for Intraday Trading? | Kotak Securities (2024)

Time frame suitable for novice traders is between 10.15 am and 2:30 pm. But due to the subsiding of the morning stock volatility time frame between 10:00 am to 10:15 am can be ideal to grab any opportunity.

Choosing the Intraday Trading Chart Time Frame

To choose the best time frame for intraday trading, you need to check different time charts. You may need to look at different time frames & according to your choice to buy stocks online for intraday trade..

1-minute chart: It is useful for very short term scalping strategies and identifying opening range breakouts. Trader requires quick execution and constant monitoring for this time chart.

5-minute Chart: This chart can be useful for short term momentum trades, identifying support/resistance levels, and establishing intraday trends. Gives more context than 1 minute charts.15-minute chart: It is a popular type of intraday time frame which tends to balance capturing short term moves with filtering out noise. Key support/resistance and trend signals can be seen clearly.

30-minute chart: This chart is suitable for swing trading; less noise than lower time frames. Key intraday support and resistance levels stand out. Gives a broader market context.

60-minute chart: The 60 minute chart is used for the longer term intraday trend identification. Also helpful for seeing larger support/resistance zones for the day.

Most commonly, intraday traders often use 15–minutes or 5 minute charts. Depending upon the volume & liquidity of stocks you can choose the best time frame for intraday trading as per your need.

Should You Trade in the First Half Or Second Half?

There is nothing like trading in the first half is better or the second half as intraday trading time. Depending upon your stock analysis you can trade anytime within the market hours.

Some of the things you must know about the first or second half of intraday trading is that the first half of the day (opening bell to noon) often sees higher volatility and larger price swings as the market digests opening news/events and initial reactions play out. This can reflect more opportunities for trading.

In the early morning there are major movements in the intraday stocks. This gap and breakouts can yield profitable trade for traders. And in the midday the movement can be observed at a slow pace. At this time the volatility may or may not be low. And before the end of trading sessions, chances of trend to re-emerge & expand is high. But in contrast, the market conditions depend on multiple factors.

Should I Trade in the First Fifteen Minutes?

You can trade in first 15 minutes of the trading day but it's quite risky and its not recommendedbut on the other hand it can also present some opportunities if traded carefully.

The volatility of stocks tends to be highest at the open as the market reacts to overnight news and events. This can lead to quick breakouts but also whippy action. Opening range breakouts are common which can signal direction for the day. Watch out for support and resistance levels in the first 15 minutes of that particular stock. Look for target breakouts, gaps, volume surges, technical levels. Don't trade randomly.

You can also use wider stop-loss at first and reduce size to account for unpredictable open action. Therefore, the first 15 minutes can see tradable but requires faster reaction times, disciplined risk management

What are the Benefits Of Trading at the Optimum Time Frame?

Here are some benefits of trading at the optimal intraday trading time frame in India:

  • Improves timing: Trading at time frames aligned with peak volatility and liquidity allows you to capitalize on the maximum movement in the markets.

  • Better trend identification: Key intraday trends and reversals are clearer on certain time frames that filter out market noise.

  • Sets the pace: The chosen time frame dictates the speed and frequency of trading required. Lower time frames mean faster decision making.

  • Maximizes opportunities: Trading when the markets and stocks are most active presents more trade setups and profit potential.

  • Minimizes guesswork: Having a defined optimal time frame provides trading rules and discipline for that trading style.

  • Matches strategy to conditions: Time frame suits the strategy better, whether trend trading, range trading or scalping.

  • Risk management: Intraday time frame correlates to sensible stop loss placement and target objectives. This makes a positive intraday trading strategy for your trade.

Aligning your trading to optimal intraday time frames helps you to have greater efficiency and success rate. It provides structure tailored to share market conditions.

Conclusion

The best timing for intraday trading occurs when the markets and specific stocks experience increases in volume, volatility, and liquidity. This provides the best chance to take advantage of short-term movements and trends during the day. Trading in the share market when stocks are most active increases your chances of success comparatively to doing trade in inactive markets

Intraday trading time also allows you to align your strategy with the current market conditions and set the pace of trading required. Poor intraday timing means trading against the current market state, leading to frustration and missed profit potential. In summary, good intraday timing enhances accuracy, efficiency, and your overall success rate.

FAQs On Intraday Trading Time

When it comes to trading, the experts prefer to stick with a trading interval that's less than 30 seconds. They base their decision on their own personal trading style instead of relying on calculations, industry trends, platform, or strategy.

Timing profiles can vary greatly depending on a stock's liquidity, volatility, sector, etc. Watch and adapt to each stock's unique rhythm in the stock market.

Typical intraday time frames are 1 min, 5 min, 15 min charts. 15 min balances noise filtering and capturing shorter term moves for intraday traders.

Both times can work if you trade the prevailing momentum of an intraday stock. The open tends to see quick breakouts while the close sees huge runs into the finish.

Yes, initial volatility presents opportunities but expect whippy action and have a plan. Manage risk tightly & invest in the right moment.

To determine the ideal timing for trade, just backtest over various intraday time frames to see which strategy gives optimal research for your trading.

Which Time Frame is Best for Intraday Trading? | Kotak Securities (2024)

FAQs

What is the best time frame for intraday trading? ›

Optimal time frames for Intraday trading success

Many experts state that the time frame between 9.30 am and 10.30 am is the best for intraday trading. Trading during these hours is considered beneficial. Intraday traders should avoid trading for the entire day because they might not be able to get sufficient rewards.

What time should I hold intraday trading? ›

Hence, the timing for intraday trading is from 9.15 am to 3.30 pm on a daily basis in the Indian markets. To understand at what time intraday trading starts, you must be clear that intraday orders cannot be placed in the pre-market session.

Which time zone is best for intraday trading? ›

Time frame suitable for novice traders is between 10.15 am and 2:30 pm. But due to the subsiding of the morning stock volatility time frame between 10:00 am to 10:15 am can be ideal to grab any opportunity.

Which time frame chart is best for option trading? ›

Ans: The appropriate time frame for options trading depends on your purpose and research of the trade. However, a range of 30-90 days can be a good time frame for most trades.

What time frame do professional traders use? ›

Most traders will start by choosing one longer timeframe and another shorter timeframe. As a general rule, traders use a ratio of 1:4 or 1:6 when performing multiple timeframe analysis, where a four- or six-hour chart is used as the longer timeframe, and a one-hour chart is used as the lower timeframe.

What is the 10 am rule in the stock market? ›

Some traders follow something called the "10 a.m. rule." The stock market opens for trading at 9:30 a.m., and the time between 9:30 a.m. and 10 a.m. often has significant trading volume. Traders that follow the 10 a.m. rule think a stock's price trajectory is relatively set for the day by the end of that half-hour.

When to exit intraday trading? ›

Setting Target Prices and Stop-Loss Orders: Defining your desired profit level involves setting a target price. Simultaneously, establish a stop-loss order to minimise potential losses. Exiting the trade when either of these levels is reached helps you stay disciplined and manage risk.

What is the 3.30 strategy in trading? ›

It involves buying or selling options at 3:30 pm , which is the last half hour of the trading day . This strategy is based on the theory that there is usually a surge in trading activity during this time , leading to potentially profitable price movements .

When to buy and sell in intraday trading? ›

The usual market hours for intraday trading are between 9:15 A.M. and 3:15 P.M. Usually, intraday traders do not make a trade right after the market opens as there are slightly more price fluctuations in the first hour or so.

What is the best chart for intraday trading? ›

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.

Which is the best indicator for intraday trading? ›

Momentum Oscillators:

Momentum oscillators are considered one of the best indicators for intraday trading. At times traders can miss out on price movements during short-period cycles. This is when momentum oscillators can be helpful.

What is the best moving average time frame for intraday trading? ›

A 9 or 10-day moving average period is the best-moving average for intraday trading. However, 21-day EMA can be also used for day trading but you have to apply another technical indicator in combination with moving averages crossover to know the trend reversal.

What is the most reliable time frame for day trading? ›

Hence, this makes the time frame between 9:30 am to 10:30 am the ideal time to make trades. Intraday trading in the first few hours of the market opening has many benefits: – The first hour is usually the most volatile, providing ample opportunity to make the best trades of the day.

Which timeframe is best for scalping? ›

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.

How many intraday can I do in a day? ›

Many intraday traders manage to reach their profit targets for the day with a single trade. On the other hand, some traders have to enter multiple positions for the same. There is no fixed rule for the same. There are no restrictions on the number of trades that you can place during a trading day.

Which time frame is best for scalping? ›

Beginners generally trade around the 5 minutes time frame to strike the right advantage. However, advanced traders can go with 3 minutes trade precisely. Scalping is an intraday trading technique where an asset is bought and sold within a few seconds to a few minutes to capture microscopic price movements.

Which is the best strategy for intraday trading? ›

Let's take a closer look at some of the best intraday trading strategies commonly used by traders.
  • Momentum trading strategy. ...
  • Reversal trading strategy. ...
  • Breakout trading strategy. ...
  • Scalping trading strategy. ...
  • CFD trading strategy. ...
  • Gap and Go trading strategy. ...
  • Bull flag trading strategy.

What is the best indicator for intraday trading? ›

Momentum Oscillators:

Momentum oscillators are considered one of the best indicators for intraday trading. At times traders can miss out on price movements during short-period cycles. This is when momentum oscillators can be helpful.

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