Intraday trading is the process of trading financial instruments within a single day. The transactions generally occur within a few minutes to an hour before the market closes for the day. Intraday traders are usually those who wish to make money from short-term price fluctuations in the market. So Today in this blog we will discuss the types of charts in Intraday trading.
Charts are useful because they allow you to see how far prices have moved in relation to each other over time. They show you how far each bar on the chart goes up or down and how many times this has happened before, which is important information for traders who want to know whether a particular price move is unusual or normal for that particular security.
This allows you to analyze whether there were any significant changes in price during each bar, as well as how far they moved from their open or close prices at the end of each bar.
Charts in Intraday Trading
Tick-Trade Chart in Intraday Trading
Tick charts are the most popular type of chart for intraday trading. They show price movements as little ticks on a grid and can be used to track the price action of individual stocks and commodities.
These charts are called tick charts because they show the bid/ask prices for each trade, with each trade being one tick on the chart. The next trade is plotted two ticks away from the last one, and so on.
Hourly Charts in Intraday Trading
Hourly charts are great for day traders who want to see which way the market is trending over a long period of time.
If you're looking at an hourly chart, all the information will be displayed in one grid that shows the hourly price action all in one place.
This makes it easy to see if there's any major upward or downward movements occurring over a long period of time.
Intraday Five-Minute Charts
The five-minute time frame is one of the most popular time frames for intraday traders. It allows them to watch market movements in real time and react quickly to price changes.
The five-minute chart is also ideal for day traders because it allows them to take advantage of short-term price movements.
15-Minute Charts
15-minute charts are best used by swing traders who want to see how their stocks have performed during different periods throughout the day before making a decision on whether or not to buy or sell their positions.
These charts typically only display five candles per candle line, so they're not as detailed as other types of charts, but they can still be helpful when looking at historical price action over time.
A tick chart is appropriate for traders who want to see all of the activity in a single market or security over time, including both large and small moves.
Final Note
Charts analysis is one of the most important aspects of intraday trading. Although it is not required to know charting techniques to take up intraday trading, it helps in making better decisions. The chart gives a lot of information about the market which cannot be obtained from just looking at the quotes on the screen.
Charts show trends and patterns which are very useful for intraday traders as they help them make better decisions. If you want to make your trade successful in intraday, these charts will definitely help you give outstanding returns.
