Day Trading Information Timeframes

The best time frame to set up your chart for day trading information, or data, will be determined by a number of factors. Account size, percentage of margin allowed for each trade, initial stop size are just a few of the factors to be considered.

For the beginning trader, we would suggest using Tick data in the 100-500 tick range. Using 100-500 tick charts allows us to use small stops and still have access to a reasonable amount of profit. We have found our day trading indicators do best with tick data, as the continuity of the data helps to keep our indicators smoother and easier to trade than if using minute charts.

Although many traders are quite successful with 5, 15, or 60 minute charts, shorter time frames with long term indicators will allow the beginning day trader to place initial stops closer to the market and reduce risk.