Intraday trading charts are one of the most important tools in your trading arsenal. But understanding Renko from Heikin Ash, or evaluating best time intervals from 5 minutes, intraday or per tick charts can be difficult. Here we explain charts for day trading, identify free charting products and hopefully convert trades without charts.

 

 

This page breaks down the best trading charts for 2020, including bar charts, candlestick charts, and line charts. It will then provide instructions on how to set up and interpret your chart. At the end you will get top tips on where to get the best free and free charting software.

All live price charts on this website are distributed by  TradingView , which offers a wide range of accounts for anyone who wants to use advanced charting features.

Best chart for day trading

There are several intraday trading charts ranging from Heiken-Ashi and Renko charts to Magi and Tick charts. Your task is to find a chart that best suits your personal trading style.

Each chart has its own benefits and drawbacks. However, day trading using candlestick and bar charts is especially popular because they provide more information than simple line charts.

Line graph

One of the most popular types of day trading charts is the line chart. But, they will only give you the closing price. You will still choose a time frame, but the chart will only show the closing price for that period, say five minutes.

Each closing price is then connected to the next closing price by a continuous line. Line charts are useful to cut through the noise and give you a brief overview of where the price has been. However, you will not want to base your trading decisions solely on this data because the necessary information is lacking.

 

Bar & Candlestick Charts

Most of the trading charts you see online will be bar and candlestick charts. They give you the most information, in an easy-to-navigate format. Simply put, they indicate where the price has gone over a specified period of time.

The size of the bar/candle depends on your chosen timeframe. Let’s say the price bar or candle is created every five minutes. Bar and candlestick charts will show the price of the first trade that took place at the beginning of that five minutes, plus the highest and lowest trade prices for that period. In addition, you will also see the last price (close) of that five-minute period.

You will find more tips on finding the best time periods for day trading charts below.

Bar chart

Bar charts consist of vertical lines representing the price range over a specified period. The horizontal lines represent the opening and closing prices. If the opening price is lower than the closing price, the line will usually be black and vice versa.

The bar chart is actually an extension of the line chart, adding open, high, low, and close. They are still relatively simple to read, while providing you with some important trading information flow charts that are not possible.

 

Tick

Day trading with tick charts is not common, but some traders swear by it. The bars on the tick chart grow based on the specified number of trades. So a 415 tick chart generates a new bar every 415 trades.

They allow you to easily time your entries, which is why many chart ticks confirm the best for day trading. They won’t be affected by time, so during times of high trading activity you can have the form of bars per minute, but during slow periods it can take several hours. This means that during high volume periods, tick charts will show you more important information than a lot of other charts.

 

 

Candlestick chart

Heikin-Ashi

If you are day trading, a heikin-ashi pdf chart will probably appear on your screen at some point. This form of candlestick charting originated in the 1700s from Japan.

 

So, why do people use them? Because they filter out a lot of unnecessary information so you get a clear view of the trend. This makes it ideal for beginners. But they also come in handy for experienced traders. The Heiken-ashi chart will help you stay trending in your trades and do simple spotting reversals.

 

 

Renko

If you are looking for an easy way to day trade with charts, then consider Renko charts. ‘Renko’ comes from the Japanese word for brick, ‘renga’. A Renko chart will only show you the price movement. You will not get any time or volume indication.

When the price exceeds the top or bottom of the previous brick, a new brick is placed in the next column. You will see a white brick when the trend is up and a black brick when the trend is down. They are especially useful for identifying key support and resistance levels.

 

 

Kagi

All Kagi charts need is the refund amount that you specify as a percentage or price change. Then, when the price turns in the opposite direction to the predetermined reversal amount, the chart will change direction.

You will see different line widths in the Kagi chart. If the market is higher than a previous swing, the line will thicken. Likewise, when it goes below a previous swing, the line thins out.

Kagi charts are great for day trading because they emphasize breakouts of highs and lows. It is also great for finding support and resistance levels, allowing you to track market trends.

 

 

Set time

Online you will see a lot of intraday trades, 1, 5, 15 and 30 minute charts. All chart types have a timeframe, usually the x-axis, and that determines the amount of trading information they display.

While most are time-based, some will focus on the number of transactions. The most popular are:

  • Time
  • Tick
  • Volume
  • Price range

The 5-minute chart is an example of a time-based timeframe. Every 5 minutes, a new price bar will form showing you the price movements for those 5 minutes. Any number of trades can appear in that timeframe, from hundreds to thousands.

Part of your day trading chart setup will require specifying a time period. If you’re not going to be glued to a screen all day, you’ll probably want to use a lower timeframe. If you plan on being there for a long time then perhaps a higher time frame will work better for you.

This is simply because if you trade for only a few hours, the 15 minute chart will only produce a limited number of bars. No matter how good your charting software is, it will struggle to generate useful signals with such limited information.

Index problems

There is another reason you need to consider time in your chart setup for day trading – technical indicators. Not all indicators work equally with all timeframes. You can find lagging indicators, such as a moving average, that work best with little volatility. You can then benefit from a longer moving average on your daily chart, than if you used the same setup on the 1-minute chart.

There is no right or wrong answer when it comes to timeframes. Keep in mind when you read a chart for intraday trading, how long will you be on your screen first, waiting for the signal to show up? Second, what timeframe do the technical indicators you use work best?

 

 

Understanding intraday trading charts

So you have your chart set up. But, now you need to get to grips with day trading chart analysis. There’s no use charting with all the answers if you can’t decipher the lines, marks and bars to get your hands on.

Technical Indicators

Add too many stats and you’ll be left with a sea of colors and lines that will only slow down the decision-making process. Many people make the mistake of cluttering up their charts and not being able to interpret all the data. Instead, consider some of the most popular metrics:

  • Volume Indicator – It won’t tell you which direction the price will go, however, it will let you know if a significant number of trades are made and whether the big players are in the game or not.
  • Simple Moving Average (SMA) – The 10-period moving average is one of the most popular indicators among day traders. It will highlight a significant price move soon and show you which direction. Choose slower moving averages and you can lose profits when the trends end or reverse.
  • Average True Range (ATR) – This plots an accurate depiction of volatility based on the actual price of the device. This leaves you with no choice but to evaluate each security on an individual basis. This helps to ensure correct trading decisions are made.
  • Oscillator – This is a group of indicators that typically flow between the upper and lower bounds. They come in handy when a trend is not clear. The most popular among them are the RSI, the MACD and the Commodity Channel Index (CCI).

Chart Templates

With thousands of trading opportunities on your charts, how do you know when to enter and exit a position? You have to find the best intraday trading patterns. Patterns are great because they help you predict future price movements. They work on the basis that, “history repeats itself”.

For example, stock chart patterns will help you identify trend reversals and continuations. You will usually find two themes in chart analysis, breakouts and reversals. The former is when price clears a predetermined level on your chart. The second is when there is a change in the direction of a price trend.

Some of the most popular models are listed below.

  • Morning merge
  • Late merge
  • Less to not retrace in price
  • Spring support
  • Outside bar at resistance or support
  • Wrench
  • Cup and handle
  • Ascending triangle
  • Descending triangle
  • Three bottoms
  • Head and shoulder

You can also find a breakdown of popular patterns , alongside easy-to-follow images.

Software

You can get a wide range of charting software, from day trading apps to web based platforms. Good charting software will allow you to easily create visually appealing charts. You should also have all the technical analysis and tools in just a few clicks.

Most brokers offer charting software, but some traders opt for additional specialized software. If you are new to day trading with charts then the standard software you get from your broker will cut the mustard.

All of the popular charting software below offer line, bar and candlestick charts. They all also offer extensive customization options:

  • MetaTrader – It is ideal if you are looking for daily forex charts. Trading with these MetaTraders offers in-depth charts and is easy to navigate. You also get multiple timeframes to choose between.
  • eSignal – eSignal offers extensive customization, but a relatively limited selection of technical indicators. It is ideal for beginners who want to familiarize themselves with trading charts.
  • NinjaTrader – This low cost integrated trading and charting software system provides clear charts in any format under the sun. You will also benefit from research tools and a handy trading simulator.
  • Sierra Charts – This trading platform not only offers easy charts but also extensive technical analysis tools. It also offers a demo account, plus real-time and historical data.
  • TradeStation – You benefit from flexibility and multi-data charts. On top of that, you get access to indicators with alerts and some smart drawing tools.

If you want completely free charting software, consider more complete examples in the next section.

Free Charts

The good news is that a lot of day trading charts are free. You get most of the same indicators and technical analysis tools you would pay for live charts. You will also find several free options that provide a space for traders to follow experienced traders and discuss instruments and markets with each other.

These free charting sites are the perfect place for beginners to find their feet, providing you with top tips on chart reading. Some will also offer demo accounts. These give you the opportunity to trade with simulated money first while you find the ropes. They are ideal for trying out a bunch of different charts until you find the right one that compliments your trading style.

Some of the most popular free online trading charts are:

  • Technician – You get real-time daily charts for all US forex and capital markets. In addition, you will receive deferred data from the global stock and futures markets.
  • TradingView – You will get real-time stock charts on 1, 3, 5 and 15 minute timeframes. You can also get forex and bitcoin charts, while futures data is delayed. You will have access to hundreds of technical indicators and the ability to set up watch lists and alerts.
  • FreeStockCharts – You get trading charts for cryptocurrencies, futures, stocks and all other major markets. You will have 1, 2, 3, 5, 10 and 15 minute timeframes to choose between. You can save portfolios, create different chart layouts and benefit from a wide range of technical indicators and drawing tools.

Main attractions

This page has explained trading charts in detail. So you should know, the days of trading without charts are missing out on a bunch of useful information. Accurately used charts can help you scan through previous price data to help you better predict future changes. There is a wide range of charting software out there, including some free options. Look for charts with generous customization options, offering a wide range of technical tools to allow you to identify speaking patterns.