Live Trading on the 5-Minute Time Frame (how I keep it simple)

Summary

The video script details the trader's transition from using one-minute charts to the more effective five-minute time frame for day trading, particularly with high volume momentum strategies. It showcases the development of a proprietary stock scanner, 'Stocks.IO', designed to offer real-time data and customizable strategy scanners, enhancing trading decisions. The trader demonstrates how the five-minute chart provides clearer entry points, better risk management, and helps in identifying choppy markets, ultimately leading to more profitable trades.

Takeaways

• 🕒 The speaker prefers the 5-minute time frame over the 1-minute chart for day trading due to its reduced volatility and clearer signals.
• 📈 The 5-minute chart provides a better perspective for identifying trends and avoiding false signals that the 1-minute chart may present.
• 🛠️ The speaker uses a proprietary stock scanner called 'stocks' which offers features like live short interest data and the ability to create custom strategy templates.
• 💰 The stock scanner 'stocks' offers an affordable alternative to premium stock scanners, potentially saving traders a significant amount of money on monthly fees.
• 📊 The importance of analyzing the daily time frame first is emphasized as it provides the overall context before looking at smaller intraday time frames.
• 📉 The script illustrates how a stock's reaction to overnight gaps and market sentiment can be assessed more effectively using the 5-minute chart.
• 📌 The use of technical indicators such as VWAP and 8 EMA is highlighted for confirming entry and exit points in trades.
• 📉 The 5-minute chart helps in managing risk and identifying stop-loss points more effectively compared to the 1-minute chart.
• 📈 The script demonstrates how to use the 5-minute chart to hold trades longer and maximize profits by avoiding premature exits during consolidation periods.
• 🚫 The 5-minute time frame can help traders avoid unclear setups and overtrading during choppy market conditions by providing a clearer picture of the overall market action.

Q & A

Why did the speaker stop using the one-minute chart for day trading?

The speaker found that the one-minute chart is the most volatile time frame in stock trading, which can lead to false signals and increased chances of FOMO or revenge trading.

What is the main advantage of using a 5-minute time frame for day trading according to the speaker?

The 5-minute time frame provides a clearer picture with less volatility, allowing traders to see bigger details such as V-shaped recoveries and better confirmation on entries, leading to better risk-reward and higher probability of success.

What is 'Stocks.IO' and how does it benefit traders?

Stocks.IO is a proprietary stock scanner developed by traders for traders. It offers real-time scanning for stocks based on various customized strategies, important data like relative volume, live short interest, and the unique feature to check the ease of borrowing a stock and short locate prices at major brokers.

How does Stocks.IO differ from other stock scanners in terms of pricing?

Stocks.IO offers a more affordable pricing model compared to other premium stock scanners that charge $130 to $190 per month, thus helping traders save money.

What is the importance of comparing the 1-minute and 5-minute charts for Tesla stock as shown in the script?

Comparing the two time frames helps to illustrate the differences in volatility and clarity. The 5-minute chart provides a more comprehensive view, showing significant patterns like the V-shaped recovery, which might be missed or obscured in the 1-minute chart.

Why is the daily time frame important for day traders?

The daily time frame is crucial as it gives an overall view of the stock's performance, setting the context for intraday trading by establishing key levels such as the previous day's high and low, which are important for understanding the stock's direction.

What is the significance of the 'V-shaped recovery' mentioned in the script?

A V-shaped recovery refers to a situation where a stock sells off and then bounces back strongly, forming a 'V' pattern on the chart. It's significant because it can indicate a reversal from a downward trend to an upward one, providing a potential entry point for traders.

How does the speaker use the 5-minute chart to manage risk and determine stop loss or take profit levels?

The speaker uses the 5-minute chart to identify clean breakouts above indicators like the 8 EMA and VWAP, and to observe how the stock interacts with these indicators during pullbacks. This approach helps in setting stop losses below the EMA or VWAP and taking profits after observing a strong breakout or when the stock fails to maintain momentum.

What is the role of the 8 EMA in the speaker's trading strategy?

The 8 EMA (Exponential Moving Average) is used as a momentum indicator. The speaker looks for stocks to ride along the 8 EMA during an uptrend, and uses it as a reference to determine when to exit a trade if the stock breaks down through the EMA, indicating a potential change in momentum.

How does the speaker use the 5-minute chart to avoid bad market conditions and overtrading?

The speaker uses the 5-minute chart to identify choppy market conditions and avoid unclear setups. By observing the bigger picture and the frequency of failed breakouts or confirmations, the speaker can decide to stay out of trades or limit entries, thus avoiding unnecessary risk during indecisive market periods.

What is the key takeaway from the live trading example with ZPPP (ZAP) stock?

The key takeaway is the practical application of using both 2-minute and 5-minute charts to confirm entries and manage trades. The 5-minute chart provides a cleaner picture and helps the trader stay in the trade longer, avoiding premature exits during consolidation periods, and maximizing profits.

Outlines

00:00

📈 Transition to 5-Minute Chart for Day Trading

The speaker shares their experience transitioning from using a one-minute chart to a 5-minute chart for day trading, which they found to be more effective, particularly for high volume momentum strategies. They introduce their proprietary stock scanner, 'stocks', developed by traders for traders, which offers real-time data and various strategy scanners. The scanner allows users to create custom criteria templates and provides important data such as relative volume and live short interest. A new feature indicating the ease of borrowing stocks and short locate prices at major brokers has been added. The speaker emphasizes the affordability of their tool compared to other premium scanners and invites viewers to check out the link in the video description for more information.

05:02

📊 The Advantages of 5-Minute Chart for Entry and Exit Strategies

The speaker compares the 1-minute and 5-minute time frames, using Tesla stock as an example, to illustrate the volatility of the 1-minute chart and the benefits of the 5-minute chart for better entry and exit decisions. They discuss the importance of understanding daily time frames before delving into intraday trading. The speaker points out that the 5-minute chart provides a clearer picture of market movements, such as a significant V-shaped recovery, which might not be as evident on a 1-minute chart. They also explain how using momentum indicators like the 8 EMA and VWAP on the 5-minute chart can help traders avoid false signals and make more informed decisions, leading to better risk-reward trades.

10:03

🚀 Maximizing Profit with 5-Minute Chart in Momentum Trading

The speaker elaborates on how the 5-minute chart can be used to maximize profits in momentum trading. They discuss the importance of patience and letting winners run, using the 8 EMA as a momentum indicator on the 5-minute chart. By providing a comparison between the 1-minute and 5-minute charts for Tesla stock, the speaker shows how the latter allows for a clearer view of the stock's trend, enabling traders to ride through pullbacks and consolidations with more confidence. The speaker emphasizes the value of the 5-minute chart in identifying true breakouts and avoiding premature exits, thus helping traders to hold onto profitable trades for longer periods.

15:07

📉 Using 5-Minute Chart to Navigate Choppy Market Conditions

The speaker shares insights on using the 5-minute chart to avoid unclear setups and choppy market conditions, which can lead to overtrading and losses. They compare the 1-minute and 5-minute charts for Nvidia stock, highlighting the difficulty of identifying clear trading patterns on the 1-minute chart due to its volatility. The 5-minute chart, on the other hand, provides a broader perspective, allowing traders to recognize the stock's range and avoid being misled by intraday confirmations. The speaker advises using the 5-minute chart to identify the top and bottom range quickly and to avoid engaging in trades during indecisive market periods.

20:08

📌 Live Trading Example: Applying 5-Minute Chart for Better Execution

The speaker provides a live trading example, demonstrating the practical application of the 5-minute chart for better trade execution. They discuss trading ZPPP (ZAP) stock, using both 2-minute and 5-minute charts for confirmations and to stay in the trade longer. The speaker emphasizes the importance of observing volume and price action on the 5-minute chart to maintain positions during bearish consolidations and avoid being stopped out by short-term bounces. They also show how to add to short positions based on the 5-minute chart's indicators and eventually cover the position at a profit, leaving some potential profit on the table to avoid the chaos of the 1-minute chart.

25:09

📉 Profit Maximization and Risk Management with 5-Minute Chart

In the final paragraph, the speaker wraps up the video by summarizing the benefits of using the 5-minute chart for profit maximization and risk management. They reflect on their experience with the 5-minute chart, explaining how it helps in staying in trades longer and avoiding the chaos of the 1-minute chart. The speaker provides a visual comparison between the 5-minute and 1-minute charts for a trade, showing the cleaner and more manageable price action on the 5-minute chart. They conclude by encouraging viewers to learn more about different trading time frames and to check out their stock scanner, Stocks.IO, for daily trading insights and tools.

Keywords

💡Day Trading

Day trading is the practice of buying and selling financial instruments within the same trading day. It's a short-term trading strategy that aims to capitalize on small price movements throughout the day. In the video, the speaker discusses how the 5-minute time frame is more effective for day trading than the 1-minute chart, particularly for high volume momentum strategies.

💡Time Frame

A time frame in trading refers to the duration over which a trader looks at price data. It can range from one minute to a month or more. The video emphasizes the importance of using the 5-minute time frame for better clarity and to avoid the volatility of the 1-minute chart.

💡Stock Scanner

A stock scanner is a tool that traders use to filter stocks based on specific criteria, such as volume, price change, and other technical indicators. The speaker mentions a proprietary stock scanner they developed, which includes custom strategy scanners like the large cap Gap scanner and the low float Runner scanner.

💡Momentum Indicators

Momentum indicators are technical analysis tools used to identify the strength, speed, duration, and duration change of a trend. In the video, the speaker uses the Volume Weighted Average Price (VWAP) and the 8-Exponential Moving Average (8 EMA) as momentum indicators to make trading decisions.

💡Volatility

Volatility refers to the degree of variation of a trading price series over time. The speaker points out that the 1-minute chart is the most volatile time frame in stock trading, which can lead to false signals and increased risk of bad trading decisions.

💡False Signals

False signals in trading occur when price action triggers a trading signal that does not lead to the expected outcome. The speaker explains that the 1-minute chart provides many false signals, which can mislead traders, whereas the 5-minute chart offers better confirmation and fewer false signals.

💡V-Shaped Recovery

A V-shaped recovery in finance refers to a type of price movement where the price of a security or an entire market falls sharply and then quickly rises to its original level or higher. The speaker uses this term to describe a significant price rebound observed on the 5-minute chart of Tesla stock.

💡EMA (Exponential Moving Average)

The Exponential Moving Average is a type of moving average that places greater weight on the most recent data points. It is used to identify trends and is more responsive to price changes than a simple moving average. The speaker uses the 8 EMA to track momentum and determine entry and exit points in trades.

💡Risk Management

Risk management in trading involves the identification, evaluation, and prioritization of risks followed by coordinated efforts to minimize, monitor, and control the probability or impact of unfortunate events. The speaker discusses using the 5-minute chart to better manage risk by avoiding false signals and having a clearer view of market trends.

💡Overtrading

Overtrading occurs when a trader makes too many trades in a short period, often leading to increased transaction costs and lower profits. The speaker warns against overtrading by using the 5-minute chart to avoid unclear setups and choppy market conditions.

💡Short Selling

Short selling is an investment or trading strategy that speculates on the decline in a security's price. The speaker discusses shorting a stock, which has been going parabolic on the daily chart, and using the 5-minute chart to confirm entries and manage the trade.

Highlights

Switching from the one-minute chart to the five-minute time frame improved day trading outcomes, especially for high volume momentum strategies.

Introduction of a proprietary stock scanner 'stocks' developed by traders for better market data and strategy customization.

Stocks scanner offers unique features like the ability to see if a stock is easy to borrow and short locate prices at major brokers.

The five-minute chart provides a clearer picture and reduces the impact of false signals compared to the one-minute chart.

Daily time frame analysis is crucial for day traders to get an overall market perspective before focusing on smaller time frames.

Tesla stock example illustrates the difference in volatility and clarity between one-minute and five-minute charts.

The importance of understanding market conditions, such as SPY and QQQ, to interpret gaps correctly was highlighted.

V-shaped recovery patterns on the five-minute chart provide a better entry point than false signals on the one-minute chart.

Using the 8 EMA and VWAP indicators on the five-minute chart helps in identifying true breakouts and avoiding false signals.

The five-minute chart allows for more patience in trading, letting winners run and avoiding early exits during pullbacks.

Comparing entry criteria between one-minute and five-minute charts shows the latter provides better risk-reward and success probability.

The five-minute chart helps in avoiding unclear setups and overtrading during choppy market conditions.

Nvidia stock example demonstrates how the five-minute chart provides a clearer direction amidst a choppy one-minute chart.

The five-minute chart is better for identifying top and bottom ranges during sideways trading action.

The video includes live trading examples using the five-minute chart for better trade execution and profit maximization.

Zapp stock example shows the practical application of the five-minute chart in a live trading scenario, emphasizing patience and trend recognition.

The video concludes with the recommendation to use the five-minute chart over the one-minute chart for more efficient and less stressful trading.

Transcripts

I stopped using the one minute chart and

found out the 5 minute time frame

actually works best for day trading

especially on high volume momentum

strategies in this video I'll show you

how I made around $2,000 trading stocks

using the 5 minute and 2 minute time

frames before we get into this allow me

just 2 minutes of your time I created my

very own proprietary stock scanner

stocks. stocks. is developed by Traders

for Traders we came together to create a

home scanner after going through the

painful experience of paying extremely

high fees for other stock scanners that

are showing lagging and slow inaccurate

Market data as a stocks iio user you can

find the right kind of stocks to trade

using our built-in strategy scanners

these all customized based on my very

own trading strategies such as the large

cap Gap scanner the low float Runner

scanner as well as the the midday swing

trading scanner we also made it very

simple for you to create and save your

own scanner criteria template all you

need to do is Click create new scan type

in your filter criteria and hit save

we're constantly improving the features

on stocks we've already provided

important data such as relative volume

live short interest OTC market data

float and so much more we also just

rolled out a brand new feature this week

the ability for Traders to see whether

the stock is easy to borrow or hard to

borrow and what kind of short locate

prices are at Major Brokers such as

Centerpoint Securities interactive

brokers and so much more there's no

other trading tools out there that can

offer you this unique feature and here

is our affordable pricing if you've used

any of the other premium stock scanners

out there you know they are charging you

130 to 190 per month so that's how much

money you can save by switching to stock

bo. the link is available Below in the

video description okay now let's get

started with our trading video Lesson

the ultimate 5 minute time frame trading

guide just like most Traders I used to

think that I need to be a super sharp

price action scalper and react quickly

to every single breakout or a breakdown

on a one minute chart but the truth is

these long upper and bottom Candlestick

wigs or chart patterns are actually one

of the most common reasons causing you

fomo or Revenge trading and sure I'm

sure you've seen a lot of pro traders

who use the one minute time frame and

they use it for bar by bar price action

analysis however there are some crucial

factors that you must know before using

the 1 minute time frame to make your

trading

decisions firstly the one minute chart

is the most volatile time frame in stock

trading let's compare the 1 minute time

frame to the 5 minute chart on a hot

stock that's recently in play Tesla

stock so over here you on my chart here

you can see this is the 1 minute chart

on the left hand side here of the exact

same day as the five minute chart now

before we dive into the specifics for

intraday trading let's just take a look

at the daily time frame first regardless

of which Camp you're at 1 minute 5

minutes or 15 minutes or hourly the

daily time frame is often the most

important for day traders to look at

first because it gives you the overall

big idea before you get so zoomed in to

the smaller time frames so the day we

are looking at in particular is this day

here for Testa stock you can see a

previous lower day is around 242s and

the previous higher day is around this

level here at

252 so you need to at least know these

two information before looking at the

intraday smaller time frames as you may

have know already by now Tesla stock

went on this multi-day run after a lot

of recent positive Market sentiment

about the improved delivery numbers and

the launch of Robo taxi so just taking a

quick look at this one minute chart for

Tesla here you can see that this yellow

part is the pre-market trading hours you

can see that the stock actually gapped

down pre-market after closing at

252s um that daily level we talked about

252s the previous day it opened up lower

at 247 so that's a fivepoint gap down

overnight a lot of Traders when they see

this overnight gap down they immediately

start to think oh the stock Tesla is now

bearish because of this overnight gap

down and can lead to the first red day

however it's still very important to

watch the overall Market condition on

the spies the qqq's to see whether this

gap down is actually meaningful or not

because a lot of Gap Downs they get

bought back up if the market is really

strong with no negative news so let's

take a look here on the one minute chart

you can see stock sold off at the open

from you know the pre-market levels 248

all the way down to 245 now I think

within the first 30 minutes of the day

it's very easy to be bearish on the

stock if you're just looking at the one

minute chart and why is that you can see

the two momentum indicators I use vwap

which is the blue line and the 8 EMA you

can see at the open the stock popped

over both indic and slam back down and

stayed underneath it for the first 20 25

minutes of the day so if you're just

looking at this 1 minute time frame here

it's very easy to become bearish on

Tesla stock because after all the stock

stayed in a downtrend you know below

multiple indicators and there's no sign

of consolidation at all for uh a

potential bounce or potential double

bottom so that's the one minute chart

from a quick glance at the open the

stock looks very bearish

but if you look at the 5 minute charts

here and I have a one minute on the left

hand side and the 5 minute chart over

here you can see the 5 minute chart

paints you know a similar picture but

you see a lot bigger details such as

this huge v-shaped recovery over here

you can see the you know sure the

opening you had to sell off but in the

grand sking of things this sell off from

um 248 down to 245 doesn't seem that bad

at all on the 5 minute chart sure you're

below the Atma and the vwap indicator

for you know five bars in total but this

bar that happened around the 955 you

know candle this huge green bar created

a v-shaped recovery that's what we call

a v-shaped recovery it's when a stock

sold off a little bit but gave you a

strong bounce so let's take a look at

comparing these two time frames

practically now let's say I'm looking

for an entry to buy the dip for a

reversal to the upside I'm long biased

on Tesla stock on the one minute charts

if I'm just trading the candles now so

if I was trying to go long on Tesla

stock you know trying to long for the

reversal you know I see a two double

bottom here you know that could see be a

signal a lot of technical traders use

for reversals but if I get in here I'll

get stopped out at the lower day here

because you can see the stock broke down

this 246 low of the day first all the

way down to 244 until it reclaimed it

much later on reclaiming the Atma and

get over that vwap now of course it's

clear in hindsight that you know this

now this 940 950 candle is the breakout

above both indicators but again you got

a lot of those F signals much earlier

here you had to you know have a vwap and

Atma breakout another one here multiple

times on the one minute charts and you

just get a lot of false signals showing

you that the stock could break down even

further further now let's take a look at

the 5 minute charts now in comparison

yes at the open you spiked a little bit

and you sold off below that candle and

you can see an attempt to break out

above it on the 5 minute chart but you

never once had a candle that closed

above the vwap and the Atma until all

the way much later with a true

confirmation candle at

955 so again the way I trade by using

these momentum indicators I want to see

candles closing above those indicator

lines and the fact that you know it

never close above it I never would have

taken an entry so that's number one and

number two you don't see a double bottom

at all on a five minute chart so while

for a lot of Traders they are looking

for those things specifically they may

have missed it all together on the five

minute chart but the one minute chart

gave you a false signal on the double

bottom so that's why for me I would

enter on a reclaim of these two

indicators so my true entry will only be

over here after the close of this candle

I'll try to get in risking below vwap

and 8 EMA indicator obviously I

understand I'm talking about these

different time frames and charts in

hindsight but I think it's very

important for Traders especially if you

are struggling to kind of review your

entry criteria and the charts are using

to enter the Trad perhaps if you always

get stopped out on a one minute chart

with all the false com informations then

five minute charts will give you a

better confirmation on your entry so

perhaps you may not get as many entries

on a five minute chart but the ones you

do take you have better risk award and a

higher probability of success so that's

the first important analysis which is

the entry criteria and how they look

differently on the 1 minute time frame

versus the five minutes now let's talk

about risk and stop or essentially like

take profit as as well so let's take a

look on the 1 minute time frame you know

we talked about earlier if we trying to

do a double bottom entry that wouldn't

have worked at all um but on a five

minute you didn't have a double bottom

entry at all you only get the entry at

least the style I trade when the stock

reclaims over vwap and over Atma which

you did that here on the one minute

chart as well as on the five minute

chart so this is the true confirmation I

look at now for a lot of the momentum

trading I like to see whether the stock

is riding along the 8 EMA so if we kind

of take a look at this just the one

minute time frame first you can see the

stock rolled the EMA up from 247 all the

way to two uh 254 that's very nice nice

little this is like what seven almost um

almost $6 per share profit but it breaks

down that EMA area around the 10:00

10:20 Mark so it breaks down that area

and sold off and kind of slowly

reclaimed and chopped around for many

many candles here you can see this

consolidation here until it broke out

again now for a lot of momentum Traders

using various indicators or Candlestick

chart patterns you'll most likely get

get stopped out around the 252s area

over here when the stock once again

broke down that Atma as well as breaking

below that daily level we talked about

remember the

252s previous days higher day that's the

daily resistance and and it's not bad

you still made a decent profit from all

the way from 247 to 242 that's not bad

but you will get stopped out nonetheless

around here like I don't think a lot of

Traders using the one minute chart will

be able to sit through all this kind of

choppy action from um 10:15 all the way

to

1058 almost 11 but now if you take a

look at the 5 minute charts over here

you can see earlier I talked about how I

use the Atma I'll try to write it over

the Atma breakout from 248 all the way

to 244 54 you can see the pull back all

the way down to Atma once again but it

never once closed below that 8 EMA even

though yes you below that daily key

level 252 you never once close below

this orange line and that's the momentum

indicator I use on the 5 minute chart

because it allows me to be more more

patient and gives me more time to sit

through all the pullbacks you see here

so you can see pull back to the Atma

indicator bounce again pull back pull

back to the Orange Line once again and

broke out above the daily key level 252s

and then went higher after the breakout

once again to 259 and overall just on

the 5 minute chart I think it allows

traders to be more patient and let the

winners run so you know even if you have

taken some partial profit around 252s if

you have a good average it's fine to sit

through the pullback and see if the

stock does break out through that daily

key level here 252 and head up higher

basically the higher time frame like

this one on the five minute chart at

least for me I will be able to sit

through this kind of consolidation to

the upside whereas if I'm looking at the

exact same time um time period on the

one minute chart I don't know if I can

sit through this kind of consolidation

action so that's the reason it would be

a good idea even if you want to stick

with the one minute chart to switch back

and forth between a 1 minute and a 5

minute time frame to allow you to ride

the winners longer and maximize your

profits so let's just take a look at one

more example here on this particular day

you can see the previous higher day once

again the daily key level is around this

259 area now let's take a look at the

today chart here's another example over

here once again this 259 area is another

daily resistance level on The Daily

charts for Tesla stock you can see on

this particular day this the one the

next day after our previous example the

stock was testing that previous higher

day that daily resistance multiple times

here you can see tested once failed

broke out failed sold off retested again

failed again failed and once again

choppy choppy choppy until it finally

broke above at around 12:00 so took

about 3 hours to break above it so after

seeing one two three four five five

attempts that broke out and kind of

failed it's very difficult for most

traders to sit through that and want to

continue sitting through that range and

chop when it looks like the stock is

failing that

resistance however if you look at the

five minute chart it's so much cleaner

once again you can see here that choppy

area we talked about all the way from um

11:00 to 12:00 that's a matter of only

about 10 candles here over here you can

see yes it did retest multiple times but

you can see higher lows on the 5 minute

chart you know no higher highs you can

see the resistance here but you see

higher lows it's still uptrending and

again it's still riding alone that at

EMA so if you were looking at the 5

minute chart it would give you a lot

more confidence and more patience to

stay in the trade and sit through that

consolidation so that was the first key

concept I want to share with you guys

today how I use the higher time frame

the five minute time frame to improve my

trading executions and maximize my

profit I almost never use the one minute

time frame anymore and I still remember

that many of you commented under this

particular video here requesting for

more trading tips regarding time frames

so I really appreciate appreciate your

support and feedback and so I would like

to share with you another key takeaway

key takeaway number two about my five

minute time frame trading how to use the

higher time frame chart to avoid a bad

and choppy market and avoid losing money

if you're enjoying the video so far

please remember to smash a like button

down below if you appreciate all the

tips I'm sharing so far okay the second

key concept that you should know is how

to use the five minutes higher time

frame to help you avoid unclear setups

or chart patterns that are just not

confirmed yet and we're going to be

comparing that side by side with a one

minute time frame which can lead to more

failed confirmations and over trading in

stock trading prices are always the most

volatile during the morning hours from

the open to about 11:30 a.m. well this

is the golden time frame for most

momentum traders to spot their setup

and nail a decent trade there could also

be a lot of choppy days even from the

open when the market is very

indecisive when you see this kind of

chart and price action as Traders you

need to be able to identify what the

chart looks like and avoid the sideways

trading action because neither long or

short bias Traders would have any decent

risky word or any momentum and volume to

capture so on the charts over here

you're looking at Nvidia stock the one

minute chart on the left hand side and

the five minute chart now I think for

this one you we can agree that whether

it's a 1 minute or 5 minutes it looks

like a mess right you can see the stock

sold off bounced around went back to

higher day but ultimately sold off runs

again at the end of the day and the

daily chart we're looking at in

particular looks like this this red

candle here is the daily chart we're

looking at you can see previous day we

had a strong candle breaking above the

daily EMA and the second day we just had

like a range trading day and a small

pullback so just looking at the 1 minute

charts here you can see a clear

pre-market rejection $128 level that's

rejected twice dou top at the open you

sold off to

126 which I get it it's like $2 per

share range but for NVIDIA that's

extremely limited for a stock that's

trading at

$120 so you get a $2 range and use

bounce and just not a lot of I guess

clear chart pattern that shows a

potential direction of the stock so for

momentum Traders if we see a stock

rejects the previous high of day which

is the 128 the previous um pre-market

key level area then you would think the

stock has more downside but no it held

that 126 level one two 3 times but the

bounce you know you get you barely get a

$1 per share bounce you can see from 126

26 to1 12730 so you get like a dollar

per share but once again for NVIDIA

that's extremely limited I think the

only person who can potentially make

money from this are scalpers who are

scalping for 20 cents 50 cents but for a

stock like Nvidia just trying to make a

dollar per share or less it's just not

efficient so once again comparing side

by side the one minute chart and the

five minute chart you see one minute

chart you failed vwap multiple times

once twice three times four five six six

times before you finally have a clear

breakout but if you were attempting to

try to long that V breakout every single

time as a scalper you would have gotten

destroyed after attempt number three

whereas on the five minute chart even

though yes you still get a lot of failed

VW breakouts here here and here at least

it's not as frequent and you see the

overall bigger picture on the on the 5

minute chart a lot more but anyways the

message here is that by using a 5 minute

time frame it allows you to see the

bigger picture so when a stock is indeed

choppy like this you can identify at

least the top range and the bottom range

relatively quickly and don't get fooled

by intraday confirmations such as double

bottom triple bottom you know and a lot

of these failed the vwap breakouts so

just o overall on the 5 minute chart you

see cleaner action and clearer

confirmation so this kind of price

action signals and confirmations on the

indicators and candlesticks would help

traders to avoid getting chopped up by

these kind of choppy range and choppy

charts after almost 10 years of trading

I've seen enough in various intraday

time frames to know that the 5 minute

chart will be the best time frame to

help me avoid unnecessary trading or

overtrading on days where I should not

be aggressive so now that you've learned

the two crucial concept about the

benefits of using this 5 minute time

frame in day trading let's dive into

some live trading action and hopefully

you'll learn some realistic insights

from watching my live entry and exit

executions on the 5 minute time frames

and as a reminder if you're enjoying

this particular time frame video so far

and you're learning a lot about the five

minute chart just put the number five in

the comment section below I appreciate

it so Market's not open you're looking

at the stock I'm about to trade which is

zppp zap um this stock has been going

parabolic on the daily chart I've been

waiting for a first red day to short the

stock you can see I'm executing the

first order starter size at two minute

charts here on the top and at 5 Minute

charts at the bottom again I like to

look at both time frames to look at

confirmations and how to stay in the

trade longer

using a f minute chart as a confirmation

I can see the stock is remaining very

weak despite SSR being on the stock

cannot bounce at all so you can see I'm

in now at around 500 shares short with

an average of $12 so on both the two-

minute charts you can see a lot of

volume traded on the selling side you

know and that's matching the five minute

chart price action so you can see I'm

looking to add the stock is remaining

week testing 1140 or 1130s already again

I'm not just looking at 2 minute charts

I'm also looking at the five minutes

whether we have more downside um for the

stock to go again I'm shorting the stock

so I'm I'm essentially wanting the stock

to go lower where I can cover for a

profit you can see on the two-minute

chart here on the top here the stock is

bouncing from $140 to $12 so you can see

over here I didn't stop out with that

twom minute bounce candle here um a lot

of people would have panicked and

stopped out um but on the five minute

chart it still looks fine you can see on

the five minute chart you see a bounce

of green candle yes but again the volume

is so much weaker you can see that green

candle the volume is a lot lower than

the red candle previously so that to me

says there's a lot more volume on the

selling side when the stock is breaking

down then on the buying side when the

stock bounced so that's why I use the 5

minute chart to help me stay in a trade

longer so fast forward a little bit now

you can see I'm only using the five

minute chart on zap at the bottom here

the stock even though you know you can

see some attempt to bouns it always stay

below that vwap area as well as below

the the Atma so you can see I'm actually

looking to add on the short side I add

on the short side but once again that's

after I observed the the price action on

the 5 minute candle here you can see

that's the reason I'm switching between

5 minute and 2 minute charts a

lot on the 5 minute I see in the bare

flag the stock consolidating for a more

breakdown for even more breakdown so you

can see even on the five minute charts

is really choppy but it's still holding

the trend to the downside so I fast

forward a little bit here you can see

the stock is on the five minute is still

very weak still below or around that $12

range but it's never able to reclaim the

upside or create higher highs and higher

lows so once again you know I'm staying

in it during this bearish

consolidation finally we're slowly

getting a 5 minute chart breakdown here

you can see what the one minute chart

looks like on the top here right like

very choppy it'll be very difficult for

me to sit through this one minute chart

on the top I mean the 5 minutes is

difficult enough um but on the five in

the chart again you see the bigger

picture you see the volume decreasing at

the bottom as well as the stock

downtrending creating lower lows lower

highs and now you're testing the lower

day at

11:36 and right now I have around 1,900

shares with an average of

1170 I'm looking for around $10 on the

stock so this is a perfect example of

how using the 5 minute time frame versus

the one minute or the 2 minute will help

you stay in the trade wait longer so

over here you can see we're testing $11

low day I haven't covered yet um I think

I might cover a little bit soon just

locking some partial profits so you can

see I'm locked in about 900 shares at

1082 so fast forward a little bit now

you can see this is what the one minute

chart looks like on the top look at all

this mess there's no way I can sit

through that on the 1 minute time frame

but you can see on the 5 minute I just

cut CED near lows at

1022 I just have 500 shares left trying

to let it ride to like $10 or something

like that but this is how you can use a

five minute chart to maximize your

profit instead of using the one minute

chart on the top here like what a mess

like there's no way I can sit through

that so you can see at the end of the

trade I did Cover just everything about

um at 12:00 when it started bouncing but

you can see I definitely left some money

on table as the stock lat tank to 10 $10

closed at around $890 at the end of the

day and now trading at 830s after hours

trading but again once again this is the

five minute chart on the top looks so

much cleaner right this is a five minute

chart let me just zoom out five minute

chart I got in here during the bearish

consolidation held it broke down so

bought it bought it back bought bought

it back covered around the 1030s versus

the one minute chart this is what the

one minute chart what it look like like

I don't know if that many people can sit

through all this maybe you can but

there's no way I could have um I would

have just covered everything um up here

at $11 if that was the

case hopefully you enjoyed this

educational video on using trading time

frames to maximize your profit if you

want to learn even more about different

time frames in trading and how to

maximize them you can check out this

video over here and don't forget to

check out my scanners stocks. IO link

down below that's a scanner I use every

single day to find stocks to trade

including my building strategy templat

how to borrow Stock features shorts

interest and so much more