The most common question for an intraday trader is which time-frame should I use for trading?

Before deciding the time-frame the question you should ask yourself is this – Do I want small gains by trading on a couple of rupees or do I want to trade for the entire day and gain on the basis of that.

Well, as per me, there are two options –

  • 15 minute chart
  • 1 hour chart

15 Minute chart

This chart is should be ideally used when you intend to trade on a couple of rupees. However, never use the 15 minute chart alone. Your chart should have the following combinations along with it.

  • RSI
  • MACD
  • Moving Average Lines of 5-,8-,13-day (Fibonacci numbers)

While using these combinations remember the thumb rule – if a stock price breaks 15-minute high price (established in the first 15 minutes of opening), then there are chances that the stock is bullish; if the stock price breaks 15-minute low established in the first 15 minutes of opening, then stock is likely to turn bearish.

Look at the below chart to see indications –

BPCL

1 Hour chart

This chart should be used when you are going for the long haul. This chart can give you your profit either the same day or on a BTST basis.The biggest advantage of using this chart is that the volatility gets reduced to a greater extent. Here also, never use the chart alone. Use the following combinations.

  • MACD
  • 8-Day Moving Average

Profits in this scenario is usually greater than the 15-minute chart. If you are trading in Futures, make sure to have enough margin to withstand a fall. If you are trading with cash, then make sure to have some in reserve as sometimes charts may give a false.

Look at the below chart to see indications –

Bank Nifty