Best Day Trading Charts

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Jay and Julie Hawk
Contributor, Benzinga
December 16, 2024

Jump straight to it: The best day trading charts are Benzinga and TradingView.

Understanding the significance of charts and the classic patterns that appear on them is paramount for success as a day trader. To use technical analysis in the most effective manner, traders need to go beyond just using indicators in day trading charts to get a picture of an asset’s price action. 

Day trading charts offer technical traders valuable insights into historical price behavior. They help astute traders identify classic patterns, spot trends and make more informed trading decisions. 

Day trading chart types include candlestick, bar, tick and point and figure charts. Each chart type provides unique cues that can guide a day trader toward greater profitability by helping them gain a competitive edge to navigate the markets more effectively and improve their trading results. 

In this article, Benzinga explores the diverse universe of day trading charts and explains the mechanics of using common chart types and the classic patterns that form on them to get potentially profitable trading ideas. 

Quick Look at the Best Day Trading Charts:

Table of Contents

6 Best Day Trading Charts

In the fast-paced world of day trading, the ability to anticipate market movements is one of the main keys to success. Incorporating day trading charts into your analytical toolkit will enhance your decision-making process and help improve your chances of thriving in the exciting realm of day trading. The following sections introduce some of the very best day trading chart providers that you can use when day trading. 

1. Best for All Trading Levels: Benzinga

Benzinga is a prominent financial media and data provider that offers a range of tools and resources for day traders, including day trading charts. Benzinga provides an intuitive and user-friendly platform for accessing day trading charts. The site offers real-time charting capabilities, allowing day traders to track price movements and analyze various technical indicators. 

Benzinga's charts are highly customizable, enabling users to adjust timeframes, add indicators, draw trendlines and annotate the charts to suit their specific trading strategies. The platform offers a variety of chart types, including candlestick charts, line charts and bar charts to cater to different preferences.

Why We Picked It: Benzinga's day trading charts provide a user-friendly and customizable platform for traders to analyze price movements and incorporate technical indicators into their day trading strategies. 

2. Best for Comprehensive Charts: TradingView

TradingView is an online platform that provides comprehensive day trading charts and a wide range of tools for technical analysis. TradingView offers a robust and feature-rich platform for accessing day trading charts. 

The platform provides real-time and historical price data for various financial instruments, including stocks, forex, cryptocurrencies and more. Traders can choose from a variety of chart types, including candlestick, bar and line charts. They can customize their charts with a wide range of indicators, drawing tools and other technical analysis features. 

The TradingView platform allows for collaboration and social interaction, enabling users to share charts, ideas and insights with the trading community

Why We Picked It: TradingView provides a powerful and user-friendly platform for day traders to access comprehensive charts and perform technical analysis. The platform's extensive range of tools, social community and cross-device accessibility contribute to its popularity among traders, and it offers a robust solution for day traders looking for advanced charting capabilities and collaboration within the trading community.

3. Best for Advanced Suite of Trading Tools: ChartPrime

ChartPrime is a cutting-edge suite of trading tools that helps guide your investments to perfection. You can analyze assets, review market trends, improve your portfolio and inform yourself about the markets rather than depending on someone else for every alert or storyline. 

Each toolkit points to a different type of trader, and you can try as many of those toolkits as you like. Plus, you can create a TradingView account that connects you with the alerts and data you need.

Why We Picked It: ChartPrime combines algorithms and a Discord community so that you can see all the information you need. Stock traders, forex traders, crypto traders and more can all benefit from using ChartPrime, with its incredible indicators, charting and automatic updates, you can get started right away.

4. Best for Forex Investing: thinkorswim

Thinkorswim is a trading platform developed by TD Ameritrade (now owned by Charles Schwab) that provides robust day trading charts with a range of features. Thinkorswim offers an advanced charting interface with numerous tools for technical analysis. 

The platform provides real-time and historical data for various financial instruments, including stocks, options, futures and forex. Traders can choose from a variety of chart types, including candlestick, bar and line. 

The charts are highly customizable, allowing users to add indicators, draw trendlines and apply technical studies to analyze price action. Thinkorswim provides features such as multiple timeframes, chart pattern recognition and customizable watchlists to enhance the trading experience.

Why We Picked It: Thinkorswim offers advanced day trading charts with a wide range of technical analysis tools and customization options. The platform's real-time data, paper trading feature and backtesting capabilities are particularly valuable for day traders. Thinkorswim provides a comprehensive solution for day traders seeking powerful charting capabilities and a wealth of technical analysis tools within a supportive trading community.

5. Best for Various Technical Tools: MetaTrader

MetaTrader is a widely-used trading platform that provides day trading charts and various features for technical analysis catering to day traders across different financial markets, most notably those operating in the retail forex market. 

Both of MetaTrader’s active 4 and 5 versions offer a comprehensive charting package that provides real-time price data, historical charts and a variety of chart types including candlestick, bar and line charts. 

Day traders can access an extensive library of technical indicators and drawing tools to conduct in-depth analysis and identify trading opportunities. MetaTrader allows for the customization of timeframes, chart layouts and color schemes to suit individual preferences and trading strategies.

Why We Picked It: MetaTrader provides a powerful charting platform with a wide array of technical analysis tools, customization options, backtesting and automated trading capabilities. Its forex focus and extensive user community make it particularly appealing to currency traders. MetaTrader is an especially strong choice among traders seeking advanced charting and analysis features.

6. Best for Advanced Futures Trading: NinjaTrader

NinjaTrader is a robust trading platform that offers comprehensive day trading charts and a range of features for technical analysis. The platform provides a powerful charting interface designed to cater to the needs of day traders. 

The NinjaTrader platform offers real-time and historical data for various financial instruments, including stocks, futures and forex. Traders can choose from multiple chart types, such as candlestick, bar and line charts, in addition to gaining access to a wide range of technical indicators and drawing tools. 

NinjaTrader's charts are highly customizable, allowing users to create personalized chart layouts, apply multiple indicators and analyze price action with precision.

Why We Picked It: NinjaTrader provides a feature-rich trading platform with comprehensive day trading charts. Its advanced charting features, market replay, backtesting capabilities and order entry functionality will appeal to active day traders. NinjaTrader offers a robust solution for day traders seeking advanced charting and analysis features, customization options and the ability to develop and automate their own trading strategies.

The Best Day Trading Patterns

Day trading patterns play an important role in helping traders identify potential market opportunities and make informed trading decisions. Some of the best day trading chart patterns are shown in schematic diagram format in the image below and listed in the following sections along with details about their characteristics and how to trade them. 

image

Schematic diagrams of some classic reversal and continuation chart patterns. Source: KingPrudien. 

Bull Flag and Pennant Patterns

The bull flag and pennant patterns are continuation patterns that typically occur after a strong upward price movement. They consist of a flagpole that represents the initial surge in price and which is followed by a consolidation period where the price either forms a flag pattern between parallel trend lines or a triangular pennant pattern between converging trend lines. Traders often look for a breakout above the upper trendline of the flag or pennant as a potential buy entry point for a long trade since they would expect the upward trend to resume.

Bear Flag and Pennant Patterns

Bear flag and pennant patterns are continuation patterns that occur after a significant downward price movement. They both consist of a flagpole that arises from the initial decline and is followed by a period of consolidation where the price either forms a flag between parallel trend lines or a triangular pennant pattern between converging trend lines. Day traders can watch for a breakout below the lower trendline of the flag or pennant as a potential sell entry point for a short trade since this would signal the continuation of the downward trend.

Double and Triple Tops and Bottoms

Double and triple tops and double bottoms are reversal patterns that signal a potential trend change. A double top occurs when the price reaches a high point, retreats and then retests the same high without breaking above it, while a triple top has an extra peak at the same high point. Conversely, a double bottom occurs when the price reaches a low point, bounces back and then retests the same low without falling below it, with the triple bottom having another trough at the same low point. Traders often look for a breakout below support at the neckline in the case of a double or triple top or above resistance at the neckline in the case of a double or triple bottom to confirm the reversal and enter trades in the direction of the new trend.

Head and Shoulders Tops and Bottoms

The head and shoulders pattern is another reversal pattern. The head and shoulders top consists of three peaks, with the middle peak being higher than the other two. The pattern gets its name because it resembles a person's head and two shoulders. Traders observe a breakout below support at the pattern’s neckline after the formation of the right shoulder to confirm the pattern. This breakout often signals a bearish reversal and prompts traders to enter short trades. The head and shoulder bottom looks like an upside-down head and shoulders top, and a break above the resistance level marked by its neckline is a bullish signal. 

Channels

Channels are a common day trading pattern that occurs when a stock's price moves within parallel trendlines over a defined period. Channels consist of an upper trendline that acts as resistance and a lower trendline that serves as support. Day traders can use channels to identify potential buying and selling opportunities. Buying near the lower trendline with a stop-loss order below it allows for potential gains if the price bounces back towards the upper trendline. Conversely, selling near the upper trendline with a stop-loss order above it allows for potential profits if the price retreats towards the lower trendline. Channels provide day traders with a useful framework for assessing price ranges, anticipating breakouts or breakdowns and setting risk management parameters for their trading strategies.

Rectangles

Rectangles are known as trading ranges or consolidation patterns, and they are a common day trading chart pattern characterized by horizontal price boundaries. Rectangles occur when the price of an asset trades within a relatively tight range to create parallel lines of support and resistance. Rectangles indicate a period of indecision in the market as buyers and sellers are evenly matched. Day traders often look for a breakout from the rectangle pattern, either to the upside or downside, since it signifies a potential trend continuation. Rectangles provide valuable information for day traders that allows them to identify areas of price consolidation and plan their entry and exit points accordingly.

Triangles

Triangles are a commonly-observed day trading pattern characterized by converging trendlines. They form when the price of a stock experiences a series of lower highs and higher lows that creates a triangle-like shape on the chart. Triangles can be either symmetrical, ascending or descending depending on the slope of the trendlines. These patterns suggest a period of consolidation and indicate that a potential breakout is imminent. Day traders often monitor triangle formations to identify entry and exit points. A breakout above the upper trendline signals a potential bullish move that could prompt day traders to initiate long positions, while a breakout below the lower trendline suggests a potential bearish move that could prompt day traders to consider short positions. By analyzing triangles, day traders can anticipate price volatility, set appropriate stop-loss levels and take advantage of potential trading opportunities.

Cup and Handle Patterns

The cup and handle pattern is a bullish continuation pattern that resembles a cup followed by a handle. The cup part of the pattern is formed by a gradual downward movement followed by a rounded bottom, while the handle portion forms during a small subsequent consolidation period. Traders look for a breakout above the handle as a potential entry point for long trades since they would expect the upward trend to continue.

Ascending and Descending Wedges

Wedges are a day trading pattern characterized by converging trendlines that slope in the same direction. An ascending wedge is typically bearish and forms when the price experiences a series of higher highs and higher lows, while a descending wedge is usually bullish and forms when the market shows a set of lower highs and lower lows. Wedges signify a period of consolidation and indicate a potential breakout in the near future. Day traders can closely monitor wedges to identify potential trade entry and exit points. A breakout above the upper trendline of an ascending wedge suggests a bullish move that can prompt traders to consider long positions, while a breakout below the lower trendline of a descending wedge suggests a bearish move, leading traders to consider short positions. Wedges provide day traders with insights into potential trend reversals and let them set appropriate stop-loss levels and capitalize on trading opportunities arising from the anticipated price move once a breakout occurs.

These classic chart patterns offer just a few examples of the best day trading patterns you can use. Remember that no chart pattern guarantees a successful trade, so proper risk management and confirming analysis should generally be used as well. By studying and understanding these useful day trading patterns, you can enhance your ability to identify potential trading opportunities and improve your overall trading performance.

How to Use Stock Charts to Mitigate Risk

When it comes to mitigating risk in trading, using stock charts effectively can provide valuable insights. Several helpful tips for traders on how to use stock charts to mitigate risk include the following:

Tip #1: Identify Support and Resistance Levels

Stock charts help day traders identify key support and resistance levels, which are price levels at which the stock tends to find support from buyers or resistance from selling pressure. These levels act as barriers that can influence future price movements. By analyzing stock charts, traders can identify key levels and adjust their risk management strategies accordingly. Setting stop-loss sell orders just below support levels or profit-taking sell targets just before resistance levels are reached can help limit potential losses and secure trading gains in a timely manner.

Tip #2: Use Technical Indicators

Stock charting platforms typically provide a wide range of technical indicators that can yield trading signals and offer day traders detailed insights into market trends, momentum, trading volume and volatility. Using technical indicators like moving averages, the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) indicator can help traders assess the strength of a stock's price movement and the potential for a market reversal. By combining technical indicators with price analysis and the classic chart patterns mentioned in the previous section, day traders can make more informed decisions and mitigate their trading risk.

Tip# 3: Monitor Price Patterns

Classic chart patterns that form on price charts like triangles, flags or wedges can offer day traders clues about potential breakouts or reversals. By monitoring these patterns on stock charts, day traders can identify favorable entry or exit points and set appropriate stop-loss orders. Additionally, recognizing patterns like head and shoulders or double tops or bottoms can provide insights into potential trend reversals and help day traders adjust their risk management strategies accordingly.

Tip #4: Implement Timeframe Analysis

Stock charts offer various timeframe options, ranging from minutes to daily, weekly or monthly time intervals. Day traders will probably want to analyze stock charts across different timeframes to gain a comprehensive understanding of the stock's price action. Shorter timeframes can provide insights into intraday price movements, while longer timeframes offer a broader perspective on trends. This multi-timeframe analysis helps day traders make more well-rounded decisions and effectively manage risk across different trading horizons.

Tip #5: Perform Volume Analysis to Confirm Pattern Breakouts

Volume is an important aspect of analyzing stock charts since it indicates the level of market participation in a particular stock. Analyzing volume patterns alongside stock price movements can offer valuable insights, especially when it comes to confirming breakouts. In general, significant price changes accompanied by high trading volume often indicate strong and reliable buying or selling pressure. Traders can use volume analysis to confirm the strength of a price move and confirm the probable validity of chart pattern breakouts or market trend reversals.

Tip #6: Use Stop-Loss Orders

Regardless of what form of chart analysis a trader uses, implementing stop-loss orders is a vital risk management practice for long-term success. Setting appropriate stop-loss levels based on chart patterns and support/resistance levels helps limit potential losses in case the trade does not go as planned. Stop-loss orders should be placed at levels that indicate a significant change in the stock's price direction. This process lets day traders exit the losing position gracefully and preserve their capital for future trades that can make them money.

By incorporating these tips into your day trading strategy, you can harness the power of stock charts to make more money and mitigate your trading risk more effectively. Remember that risk management should always be a priority when trading stocks and performing a thorough analysis of stock charts can greatly assist you in making better-informed and more appropriate trading decisions.

Compare Day Trading Platforms

If you plan on getting involved in day trading, then having access to reliable and feature-rich charting platforms can be an essential tool. With numerous day trading chart providers available in the market, choosing the right one can be a daunting task. To assist you in this endeavor, Benzinga has compiled a comparison list of some of the leading day trading chart providers including its expert insights and reviews. By examining each charting platform’s key features, charting tools, data accuracy, user-friendliness and customization options, you can select the most suitable solution to meet your specific needs. 

Frequently Asked Questions

Q

What chart is the best for day trading?

A

The best chart for day trading can depend on individual preferences and trading strategies, but many day traders rely on candlestick charts for their versatility and effectiveness. Candlestick charts provide a comprehensive view of price action, including the open, high, low and closing prices all presented in a visually intuitive manner. They have a useful range of patterns and indicators that help identify trends, reversals and potential entry and exit points. 

Q

Can you make money by day trading?

A

Yes, day trading has the potential to be profitable, but it has inherent challenges. Day trading in the financial markets is a speculative activity that involves taking risks without a guarantee of success. Day trading profitably typically requires a combination of skills, knowledge, discipline and the ability to manage risk and your trading capital effectively as you trade strategically and follow a well-thought-out trading plan. 

Jay and Julie Hawk

About Jay and Julie Hawk

About Julie: 

Julie Hawk earned her honors undergraduate degree from the University of Michigan before pursuing post-graduate scientific research at Cambridge University. She then started work in the private sector as a business systems analyst for a major investment bank, where she qualified as a Series 7 Registered Representative and received comprehensive training in various financial products. Further honing her skills, she attended the prestigious O’Connell and Piper options training course in Chicago, mastering professional option risk management techniques.

Julie then transitioned into the role of a professional Interbank forex trader, currency derivative risk manager and technical analyst, ascending to the position of vice president over a 12-year career in the financial markets. Julie’s illustrious banking career spanned working for major international banks in New York City, London, and San Francisco, where she served as an Interbank dealer, technical analyst, derivative specialist and risk manager. Her responsibilities included educating, devising customized foreign exchange hedging and risk-taking strategies, and overseeing large-scale transactions for esteemed banking clients, including corporations, fund managers and high-net-worth individuals. As part of her responsibilities, Julie managed substantial portfolios of forex options, spot, and futures positions as a currency options risk manager, earning recognition for executing innovative and highly profitable forex derivative transactions. Julie also spearheaded educational conferences on currency derivatives.

During her banking career, Julie attained world-class expertise in technical analysis, including Elliott Wave Theory, and pioneered research into automated trading and trading signal systems. An active member of the San Francisco Writers’ Guild, Julie also authored trade strategies, educational material, market commentary, newsletters, reports, articles, and press releases. She became a sought-after market expert who was frequently interviewed by financial magazines and news wires such as REUTERS.

Following her retirement from the banking sector, she dedicated 15 years to online forex trading, mentoring and freelance writing for TheFXperts, which she co-founded with her husband Jay. Julie is the co-author of “Forex Trading: A Beginner’s Guide” and “Technical Analysis for Financial Markets Traders,” in addition to five other books on financial markets trading and personal finance. She now focuses on writing articles on financial markets for platforms like Benzinga, although she continues to trade forex online and mentor fellow traders as part of TheFXperts’ financial team.


About Jay:

Jay Hawk grew up in Chicago and Mexico City where he became bilingual in English and Spanish. After taking formal training as a classical guitarist at prestigious music conservatories in Europe, Jay then embarked on a remarkable journey into the financial markets, cultivating his notable expertise through hands-on experience that began on the Midwest Stock Exchange.

His financial career progressed as he started actively participating in various exchange floor trading activities in the Chicago futures and options pits, where he worked his way up the ladder, serving as a clerk, trader, broker, investor and fund manager. Jay then ran a retail stock brokerage desk and managed funds for large institutional investors, leveraging his discretionary trading skills to yield profitable results for clients.

This ultimately led to Jay holding exchange seats and operating as a market maker on options exchanges in Chicago and San Francisco, initially on the Chicago Board Options Exchange. Jay also played a significant role in the Chicago Mercantile Exchange’s evolution, where he contributed to launching and actively trading the first listed currency futures options. After transitioning to the West Coast, Jay then held a seat and ventured into trading stock options and their underlying stocks on the Pacific Options Exchange.

Jay’s comprehensive understanding of fundamental economic and corporate analysis continues to inform his trading and investment activities and has led to his subsequent success as an expert financial writer. Together with his wife Julie, he co-authored “Stock Trading: A Beginner’s Guide”, “Commodity Trading: A Beginner’s Guide” and “Fundamental Analysis for Financial Markets Traders,” among their published books focusing on financial markets trading, market analysis, and personal finance. 

As an integral member of TheFXperts’ team, Jay now excels in trading forex online for his personal account, mentoring aspiring traders and writing for financial platforms like Benzinga where he specializes in covering topics related to the stock and commodity markets, as well as investing, trading and reviewing online brokers.

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