Hello. May I ask which timeframe is the best for Swing Trading? I know normally Swing Traders would look at Monthly Charts, then look at Daily Charts, and finally, they will look at Hourly Charts. So should I enter via the hourly chart? Or should I look at the minute charts? Thanks
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You don’t say which market you are trading. I use 30 min charts on oil and 4 hr charts on Forex.
Ask 10 people, and you’re likely to get 10 different answers, because it’s a matter of preference, style, and your own personal makeup of what fits or suits you. You have to find what time frame is the right one for you.
You’ve got it right though, use higher time frames for the setup, and lower time frames for the trigger or entry. I think a lot of people, including myself, prefer the 30 min chart for entry in the stock market, mainly because there are only six data points on an hourly chart in the stock indexes and stock charts. But there are 24 data points in Forex, so the 4 hr charts work as well.
I’ve also met people that use 1,600 ticks.
It all depends on how long you would like to be in a trade. If you base your trades off the daily chart, then you can expect to be in a trade from days to weeks. If you base trades off the hourly chart, then you can typically expect to be in a trade for several days. And, if you base your trades off the minute charts, then you most likely would only be in a trade from minutes to hours.
There isn’t a right or wrong answer to your question. Every trader has different preferences which usually coincide with how much time that they would like to devote to following the outcome of a particular trade. If you want to be an active swing trader, then you should focus on the hourly or minute charts. And, if you only want to follow your trades periodically on a day-to-day basis, then you should focus on the daily or weekly charts.
Hope this helps,
Monti Simmons
I agree with B2…. everyone is different.
I like to hold stocks from a few days to months if the price is behaving properly
. I use daily charts in locating stock candidates, then look to the 30-min intra for strength and an extra boost. The most downside risk is right at the beginning of a position, so if I can find some extra push it’s sometimes a deciding factor for me. I also (usually) get into positions at the end of day so I can see if there’s real strength or if it all falls apart at the end of the day I don’t enter. You don’t have to look at the intra, but it’s an additional confirmation.
Swing traders traditionally hold positions from a few days to a few weeks so what I’m describing should work well. Minute charts might not work as well in a swing trade strategy, unless you’re tailoring the strat. some way. Also, remember you can test anything to see if can increase your success.