Timeframes for Option Traders 101: How to Analyze Different Timeframes With Examples

Believe it or not, timeframes for option traders are extremely important to be a successful at it.

For example, when I first started trading I was doing swing trades but I was analyzing the 15 minute timeframe–and that is just not an ideal timeframe for swing trading as it does not provide a more wholistic picture of how the stock behaves in certain resistance and support levels.

Let’s dive into this!

4 Most Common Trading Styles & Their Timeframes for Option Trading

As a trader it’s important to analyze the appropriate timeframes depending on the style of trading you’re doing.

Trading Style #1: Scalp Trade

The most common timeframes for scalp traders is the one hour timeframe, the thirty minute, and the fifteen minute timeframe.

Since scalp trades are about 5 to 10 minute long trade, what I like to do is to start drawing my Supply and Demand zones from the 1 hour timeframe; and work my way down to the 15 minute timeframe the minimum.

Trading Style #2: Day Trade

The most common timeframes for a day trade is from the 1 hour to the 4 hour timeframe.

Trading Style #3: Short Swing Trade

The daily and weekly timeframe are a wonderful timeframe for a short swing–short swing trade can be holding your contracts for a couple days or for a week.

With these types of bigger timeframes, I like to find Supply and Demand zones, draw resistance and support levels, but I also like to look at the the stocks daily RSI & MACD indicators.

Trading Style #4: Long Swing Trade

When planning for a long trade (+30DTE), I like to look at the weekly and monthly timeframes, but also analyze the daily timeframe during market hours.

I like to tweet about stocks and post helpful swing trades. Follow me there if you would like some too!