BEST INTERVAL FOR DAY TRADING
Day Traders often ask me what the best chart interval is for day trading Forex, futures or the stock market.
While there isn’t any one “best” chart interval, there are definitely advantages and disadvantages to using different day trading intervals on your bar charts for technical analysis. But for every advantage you gain, you also make a sacrifice.
Shorter-term charts are excellent because they:
- Provide more day trades in a given market session.
- Offer a lower risk per trade (because the bars have less range).
However, there are also drawbacks to shorter-term day trading charts:
- They tend to be more “noisy” because the big money day traders usually take positions based on longer-term patterns.
- The rewards are not the best for day trading because trends and cycles last a shorter period of time.
But there is another consider in determining the best day trading time frame:
Should you be using minute increments at all?
Most charting platforms off other types of bar charts, and those other types of bars can provide some great advantages, and therefore may be your best day trading option.
See the video below for a day trading demonstration of exactly what I mean:
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