day trading chart timeframes talking about different time frames and how to
use the different charts when you're trading so stay tuned what's going on
guys Patrick here today we're talking about
something that seems very basic but Co people have asked about it
and it makes sense I really haven't talked about it much saying I want to
make this little video talking about day trading timeframes and charts and how I
use different time frames and the EMAs and how it all works and kind of my
theory on why I use the charts the way I do so first off let's just get the
basics out of the way there's different time frames and when I'm talking about
time frames I'm talking about the different time frames literally so this
is a one-minute chart and that makes sense every single candle on this chart
is one minute so you got you know this candle right here represents one minute
of price action it went from 1868 to 1888 on that one
minute candle I know this is basic but I want to break down the basics so
everyone can understand on the one-minute chart I'm using the nine EMA
which is the exponential moving average and I'm also using the 20 EMA this
really comes down to personal preference and then figuring out kind of what works
best for you and all that fun stuff when you really get into day trading when you
really start trading and figuring it out it's gonna come down to your personal
preference what charts you want to use what software you want to use what
different indicators you want to use all of that stuff is personal preference
some people use different indicators and it works it doesn't really matter what
indicators you're using remember these indicators are lagging so no matter what
indicators you have on the chart it doesn't matter in that moment the
indicator is telling you what happened in the past it's not telling you the
exact so if you see you know the indicator is pointing straight up it
doesn't mean it stocks going to keep going straight up it can turn off and go
down so don't get too caught up in indicators really just focus on price
action support resistance and the overall trend and kind of reading the
chart so obviously you know looking at the one-minute chart it's gonna be all
over the place because you have all these different candles it's up down so
you know all around this is snapchat it was all around today actually was kind
of underneath the view app all day long pullbacks you know in general with the
EMAs it's not going to be as clear when you're reading the one-minute chart when
it comes to the EMA's and all that the one-minute chart will kind of give you a
better idea of what's happening on that small timeframe so if you're really just
trying to get in and out of a trade fast if you want to see kind of like hey
what's going on right at the second you can look at the 1-minute chart now if
you want look at kind of a bigger picture there's people that trade on the
two minutes chart people that trade on the five minute chart there's people who
trade on the 15 minute chart it really depends on your personal preference but
for me I use the 1-minute chart I use the 5-minute chart and then I use
the daily chart really as my main focus also I'll use like the hourly chart it
really depends on kind of what I'm looking for you know but if it's a swing
in general let's say I'm trying to get like a a month long swing going on I'm
gonna be looking at the bigger picture so the bigger picture is gonna be you
know like the daily chart the one-hour chart so let's say I want to look here
at the one-hour chart on snapchat kind of get a better idea of what's been
going on recently I can see here okay snapchat recently made a big spike and
got from that $14 area I can also see that this $13 area was kind of like
support you knows Holden really didn't dip below that $13 area for a long time
so I'm thinking okay there was good support there at $13 if I
was looking to go long just swing this before I would have been looking to go
long at a 1315 area so right there you can see already on the bigger timeframes
it's easier to see the trends now looking back at the one-man chart I
would never have seen that there was $13 support there because I just can't see
it cuz it's so far back in time and the 1-minute charts very zoomed in it you
know you're like binoculars right on like that moment what's happening right
then and there so the 1-minute chart is you're gonna be
trading you know that kind of in and out really quickly if you're trying to get a
quick scalp like that you look on the 1-minute chart
I really like the five-minute chart because it's a little bit easier to see
you know for day trading we're looking at that daily what's going on inside of
there but I can also see kind of what went on yesterday so yesterday I can be
like okay I'm looking here at the resistance support I can see yesterday
that this 1886 II area was pretty good with support you know on snapshot
bounced on there 1886 had a little pullback there below that one but
overall it kind of held that 1886 area and even you know at the end of the day
after our still didn't touch below there so I'm thinking okay that's pretty good
looking support you if that 1886 here you might break it
might move lower so I can see by looking at the five-minute chart the bigger kind
of picture in terms of the last couple days and then seeing like we're that
serious support where that resistance is and then kind of the overall trend
obviously looking at this right now I can see that this overall trend is not
not going up right now by any means so that's not looking good in terms of
where this thing is going overall it's trending lower so I can see that by
looking at the 5 min chart now going back to the one-minute chart I couldn't
have seen that really you know looking at this on the 1-minute chart it's
basically just going across the screen and if I'm only looking at the one-man
chart I wouldn't know that yesterday had that support or has that downward trend
important to be looking at the overall picture kind of seeing what the overall
trend is on the stock and then really if you look here the daily chart on
snapchat it's kind of the same thing like ok I look back here overall this
thing is heading lower so there's a good chance that this thing is gonna pull
back at least you know kind of back down where it started at just to find some
support because it had this big gap up there I can see the overall picture now
I got a better idea like okay you know it's clear to see on this chart what's
going on with the daily and kind of in general so I'm using the one-minute I'm
using the 5-minute chart I'm using the daily chart and it gives me an idea of
what's going on with the overall picture a lot of times when people trade or I do
the same thing or I just only focus on the 1-minute chart and then I don't
realize that hey let's say for some reason I'm shorting this at the 1910
area that's want to short it and I didn't look at the five-minute chart and
I'm looking hey this thing's gonna crash it's going down down down but then if I
look at the 5-minute chart I might see hey yesterday 1886 here you bounce a
couple times so it might bounce against a day so if I'm going short here the
1915 area where what I look to take profit or where might this bounce at and
boom look we're bounced it bounced off the 1886 series so it's very important
to look at that overall picture I get caught up sometimes in the moment you
know I'm trading some crazy stock I'm looking at it it's hot hot hot and I'm
not paying attention and all of a sudden I look at the bigger picture I'm like
holy crap there's resistance coming up or oh I just bought right at resistance
what a bad idea why didn't I look at the bigger picture
so now I'm trading I actually have a 1-minute
chart up top I got a five-minute chart down below and I got a daily chart down
there on the daily chart I've got the 50 EMA I've got the hundred EMA in the 200
ma on the 5-minute chart I've got the 20 EMA the 50 EMA so depending on the
different time frames you're gonna use different indicators because that's a
bigger time frame you need different indicators you know using a 9 minute EMA
on a daily chart so it's not gonna do anything for you you got to go to a
bigger picture and then see also if I'm looking here at the daily chart I can
see okay you know the 200 EMA here is at that 16 dollar area alright that's
that's pretty good that's a good sign if I'm looking for some support where
support is that's good another stock real quick look in the video so I'm
looking here in the video and it's pretty clear here and so you can see it
we pull up maybe up here so if I look here in the video I'm looking daily
chart I can see okay let's say I want to go long on the video right I'm trying to
go long here where am I gonna go long obviously this looks beautiful trend
wise it's got a great trend on it it's pretty pretty clear what's going on with
the video it's going higher and you can see that that pretty clear trend Brown
actually a really tight channel you know pull back here a little bit but look at
the daily chart I can see where is that support where is that resistance and all
that kind of fun stuff and I can see boom there's the 50 EMA there's a
hundred EMA and there's a 200 EMA on there again I can see okay this pulled
back the other day it's pulling back where my I want to buy the dip at where
is a good dip opportunity Hey look there's a 200 AMA previously back in
December it bounced off the 200 EMA so if I'm looking here at Nvidia I'm
looking thinking okay it's breaking the channel where might be the next support
at you know we got the 50 and we got the hundred and we got the 200 so the 50
breaks well where's the next support the next support at the is there at the
hundred so now I'm looking to go long or looking for my dip buy at that 100 EMA
area which other traders are looking for support as well because they're looking
at the EMA is looking at all the different indicators and most of the
indicators are lining up kind of in the same spot so it gives me a kind of idea
and I understand you know that's cool so looking back here at the five minute
chart if I'm looking at this I really don't know what's going on with the
bigger picture I just see what's going on in
moving I can't really know where that support is where that resistance is and
I'm just reading what's going on right in that moment you know obviously I can
see there's some resistance or support kind of what's moving on but I'm not
seeing what's in the past I'm not seeing ting or that previous support was so
okay today we bounced off to 17 we ended up at if we had some support well look
at that if I look back yesterday on the five-minute chart there it is
we bounced off to 17 yesterday so it's important to look at the big picture
because now I know hey yesterday we bounced off to 17 this might be a good
dip by maybe I by here to 17 look at it out there to 234 now so beautiful move
here on the video showing you how important it is to look at the different
time frames don't get caught up on only one time frame look at multiple time
frames confirm your thesis off of multiple time frames if I look at the
one-man chart and it looks like there's support there okay I look at the
5-minute let's look at the daily chart is there support there well look at that
if I look back in November in December there was clear resistance at that 217
area and I look at yesterday that bottom and I can't was 217 so now I
can see where it's all lining up at I get a better idea by looking at those
different time frames so by looking at the 5-minute I see their support looking
at the one-minute I see it's bouncing I see the daily it's bouncing I can look
at all these different time frames and confirm my thesis back in January again
it bounced off 217 multiple times looking at the hourly chart so there it
is very simple very important to understand that you should be looking at
these different time frames to confirm if you want to short something you're
looking for resistance well it looks like there's resistance on the 1-minute
chart but it doesn't look good on the rest of the charts it's not that strong
of resistance now if I look at this on the 1-minute chart and it looks like
there's a resistance at the 234 here you're like right now let's say this
okay you know maybe I want a short here at 2:30 for area thickness is gonna pull
back down there to that other support okay
234 how are we looking on the 5-minute let's look at the 5-minute okay five
minutes not looking too bad I can see there was some previous support there
before 234 area now let's look back okay there is resistance there before okay
that's making sense now let me look back further okay now if I look back here on
the 60-minute chart the stock got stuck there at the 234 area before again so
now I'm confirming where that resistance is the
more resistance I see you know on the bigger timeframes if I look at the daily
chart and I see some serious resistance there the 234 area that's gonna confirm
look at that three days of resistance there at the
234 area it makes a lot more sense makes me more confident in my position it
makes me more confident in my idea or my theory so I'm looking for that
confirmation across the bigger timeframes and really just all the
timeframe 1 minute 5 minute 1 hour whatever you want to look at figuring
out what works best for strategy and then look at the different time frames
be looking at different charts when you're trading and getting a better idea
of what's going on so the more so the more that resistance or that support
lines up across all the timeframes the better chance that that's gonna be a
serious support or resistance or the overall trend if I see you on the
1-minute chart we got a trend going and I see the same trend on the 5-minute
chart and I see the same trend on the hourly chart and then holy crap I see
the same trend on the daily chart what's that mean that's a pretty serious trend
guys so there you go it's very simple very easy keep an eye on multiple
timeframes don't get stuck only looking at one time frame but really look for
multiple time frames for that confirmation of your thesis so if I want
to shore something let me see where that resistance is if I want to go long where
is that support at boom makes sense right it really does make sense it's
almost too easy sometimes to talk about but I think a lot of people forget this
I forget it I forget to look sometimes I I'm on the 1-minute chart and all of a
sudden I look at the daily chart on my holy crap why did I do that that was a
bad idea there is resistance there the support there so there it is my take on
multiple time frames how it all works with day trading and how you can improve
your day trading really by looking at multiple time frames multiple time
frames multiple profit all that fun stuff if you guys haven't already do me
one big favor I'm just asking for one favor I don't ask for anything I don't
ask for much I just ask for your subscription I asked for a like and then
maybe a comment leave a comment if you liked it video leave a comment if you
got a question leave a comment all that fun stuff I'll talk to you guys later on