Best Charts for Intraday Trading in India — Explained

The stock market can be a great way to make money, but it is also challenging. Intraday trading involves buying and selling stocks, derivatives, and other securities within the same day. This can be a challenging endeavor but can also lead to high profits.

However, many tools are available that can help traders make informed decisions that are likely to lead to profits. By combining these tools, traders can better understand how the market is moving and make decisions that are more probable to result in profits.

In this post, I will explain the best charts for intraday trading, most commonly used by day traders.

What is Intraday Trading Chart?

An intraday trading chart visually represents price data over a set time, typically one day. The purpose of an intraday trading chart is to help day traders make decisions about when to sell and buy stocks. The intraday trading chart typically shows price data in one-minute intervals, although other time frames can be used.

Trading charts are an effective way to understand price movement. They show detailed information about the opening price, closing price, and High and Low made by price for that particular timeframe.

The intraday trading charts can be used on different time frames such as 1 min, 5 min, 15 min, 30 min, and 1 hrs; These are the best time frame for intraday trading.

As an intraday trader, it’s essential to be able to read trading charts. It takes a lot of practice to become a skilled intraday trader.

Intraday Trading Charts Types

There are different types of charts available for trading, but these seven are the most commonly known and used by traders.

The intraday trading charts can mainly be classified based on how the specific information is displayed.

On this basis, the 7 best charts for intraday trading are:

• Candlestick Chart
• Line Chart
• Bar Chart
• Volume Chart
• Tick Chart
• Point and Figure Chart
• Renko Chart

Candlestick Chart

Candlestick charts are the most popular type of chart used by intraday traders. They provide detailed information on open, close, high, and low prices during the day. Candlestick charts are most useful for short-term analysis as they can provide insights into trends.

There are 35 powerful candlestick patterns that form the basics of candlestick analysis. Candlestick patterns are a valuable tool for traders to understand market sentiment and make informed trading decisions.

Example of Candlestick Chart:

Line Chart

Line charts are one of the most detailed charts because each data point is plotted on a fixed time interval. Line charts are formed by joining the closing price of the stock.

The line charts help identify long-term and short-term trends.

Example of Line Chart:

Bar Chart

Bar charts are a type of chart that consists of vertical lines that shows the price range in a specified period. Bar charts also display the open, high, and low prices. These charts offer other valuable insights into the stock and are easy to understand.

Example of Bar Chart:

Volume Chart

The volume chart is a graphical representation of the volume of a security over time. The vertical axis represents the volume of the security, and the horizontal axis represents the period. The volume chart can be used to identify trends in the volume of security and can also be used to identify potential support and resistance levels.

Example of Volume Chart:

Tick Chart

A tick chart is a graphical representation of price movements. It comprises a series of vertical lines representing the price changes over time. The length of the lines indicates the magnitude of the price change.

In a high-volume period, a tick chart offers profound insights compared to any other chart.

Point and Figure Chart

A point and figure chart is a charting technique used in technical analysis that displays price movements in a way that eliminates time and volume from the price chart.

Point & figure charts are used to track price movements without regard to time. New columns are formed when prices move beyond a predetermined level, making it a valuable tool for identifying reversals and breakouts.

Example of Point and Figure Chart:

Renko Chart

A Renko chart was created by Japanese analyst Steve Nison that is built using price movement rather than both price and time. “Renko” comes from the Japanese term for bricks, “renga.” In a Renko chart, a new “brick” is placed on the chart only when the price moves a particular amount. This makes it easy to see which direction the price is moving.

Example of Renko Chart:

Conclusion

As we can see, there are multiple options available for trading on an intraday basis. Choosing the right option is necessary for successful trading. You can choose the best chart for intraday trading which suits your trading style.

Happy Trading.

The line charts help identify long-term and short-term trends.