Best Day Trading Charts

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. 

The 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. 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.

Pros of Benzinga's Day Trading Charts

• User-friendly interface: Benzinga's platform is designed with a user-friendly interface, making it accessible for novice and experienced traders.
• Real-time data: The availability of real-time data ensures that traders have up-to-date information for their chart analysis and decision-making.
• Customization options: Benzinga's charts offer a wide range of customization options, allowing traders to tailor the charts to their specific needs and trading strategies.
• Technical indicators: The platform provides a selection of technical indicators that traders can incorporate into their analysis, enhancing their ability to identify patterns and trends.

Cons of Benzinga's Day Trading Charts

• Premium features: While Benzinga offers free access to basic charting features, some advanced functionalities and additional data may require a premium subscription, which comes at a cost.
• Limited charting tools: Compared to specialized charting platforms, Benzinga's charting tools may have fewer advanced features and options, which may be a limitation for traders requiring more sophisticated analysis capabilities.
• Integration with other platforms: Benzinga's charting platform may not seamlessly integrate with other popular trading platforms or brokers, which could be inconvenient for traders who prefer a unified ecosystem.

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. 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.

Pros of TradingView's Day Trading Charts

• Comprehensive charting tools: TradingView offers an extensive collection of technical analysis tools, including numerous indicators, drawing tools and advanced charting features. Traders can perform in-depth analysis and apply multiple strategies within the platform.
• Social trading community: The platform fosters a vibrant community of traders who share ideas, charts and trading strategies. Traders can benefit from the collective wisdom and insights of other users, which can foster a more collaborative learning environment.
• Cross-device accessibility: TradingView is a web-based platform that is accessible from any device with an Internet connection. Traders can access their charts and analysis seamlessly from desktops, laptops, tablets and smartphones.
• Integration with brokers: TradingView integrates with several brokerage platforms, allowing users to execute trades directly from the charts. This integration streamlines the trading process and enhances the overall user experience.

Cons of TradingView's Day Trading Charts

• Subscription pricing: While TradingView offers free access to basic charting features, advanced functionalities and data may require a paid subscription. The cost of the premium plans can vary depending on the level of access and additional features required.
• Learning curve: Because of the platform's extensive features and customization options, new users may experience a learning curve when navigating and using the various tools effectively.
• Data delay: While real-time data is available for many instruments, there can be a slight delay in data feeds, especially for users on the free plan. Traders requiring instant and real-time data may need to opt for paid plans or alternative data sources.

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. 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.

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. Thinkorswim

Thinkorswim is a trading platform developed by TD Ameritrade 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.

Pros of Thinkorswim's Day Trading Charts

• Comprehensive technical analysis: Thinkorswim offers a wide range of technical indicators and drawing tools, allowing traders to perform in-depth analysis and customize their charting strategies to suit their needs.
• Real-time data: The platform provides real-time streaming data, ensuring traders have access to up-to-date market information for accurate analysis and decision-making.
• Paper trading: Thinkorswim offers a paper trading feature, allowing users to practice trading strategies in a simulated environment without risking real money.
• Backtesting capabilities: Traders can backtest their strategies using historical data to assess the potential profitability and effectiveness of their trading approaches.
• Education and support: Thinkorswim provides educational resources, webinars and a supportive community to assist traders in expanding their knowledge and understanding of technical analysis and trading concepts.

Cons of Thinkorswim's Day Trading Charts

• Learning curve: Because of its extensive features and customization options, users may have a steeper learning curve, particularly for novice traders who are not familiar with advanced charting tools.
• Resource intensive: Thinkorswim is a robust platform that may require substantial computing resources, which could impact its performance on less powerful devices or slow internet connections.
• Integration limitations: While the platform integrates seamlessly with TD Ameritrade's brokerage services, integration with external brokers or platforms may be limited.

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. 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.

Pros of MetaTrader's Day Trading Charts

• Free download: MetaTrader 4 and 5 are available in fully functional versions as free downloads from their developer MetaQuotes’ website. 
• Extensive technical analysis tools: MetaTrader provides a wide range of built-in technical indicators and analytical tools, enabling traders to perform detailed market analysis and make informed trading decisions.
• Automated trading: MetaTrader supports algorithmic trading through its Expert Advisors (EAs) feature. Traders can develop and deploy automated trading strategies using MQL4 or MQL5 programming languages.
• Backtesting capabilities: Traders can backtest their strategies using historical price data to evaluate their effectiveness before deploying them in live trading.
• Market community: MetaTrader has a large user community that shares trading ideas, indicators, EAs and strategies. Traders can access the MetaTrader marketplace to find additional resources and tools developed by other users.

Cons of MetaTrader's Day Trading Charts

• Forex focus: Although MetaTrader supports trading in other financial markets, it is primarily renowned for its forex trading capabilities. Day traders in other markets may find some features less comprehensive or tailored to their specific needs.
• User interface: The user interface of MetaTrader is intuitive, but it can still be somewhat overwhelming for beginners because of its extensive features and settings. It may take some time for new users to become familiar with the platform and its functionalities.
• Limited integration: MetaTrader is primarily designed to work with online brokers that support the platform, so its integration with external brokers or platforms may be limited. This could require day traders to use specific brokerage services that offer MetaTrader support, although most forex brokers support this very popular free platform.

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. 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.

Pros of NinjaTrader's Day Trading Charts

• Advanced charting features: NinjaTrader offers an extensive array of advanced charting tools, including technical indicators, drawing tools and charting styles. Traders can perform in-depth analyses and create customized chart setups to suit their trading strategies.
• Market replay and backtesting: The platform provides a market replay feature that allows traders to practice their strategies using historical data. Additionally, NinjaTrader supports sophisticated backtesting, enabling traders to assess the performance of their strategies over past data.
• Order entry and trade execution: NinjaTrader integrates with various brokerage firms, allowing traders to place trades directly from the charts. The platform offers order entry and trade execution functionalities, streamlining the trading process.
• NinjaScript development: NinjaTrader features a proprietary programming language called NinjaScript that enables day traders to develop custom indicators, strategies and alerts. This flexibility allows for advanced customization and automation of trading strategies.

Cons of NinjaTrader's Day Trading Charts

• Learning curve: NinjaTrader has a steeper learning curve compared to some other trading platforms because of its extensive features and customization options. Novice traders may require time and effort to fully utilize the platform's capabilities.
• Platform cost: While NinjaTrader offers a free version with limited features, access to advanced functionalities requires a paid subscription or purchase of a lifetime license. Traders should consider the cost implications before committing to the platform.
• Limited broker support: Although NinjaTrader integrates with multiple brokers, the range of supported brokers is notably limited compared to other popular trading platforms.

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. 

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