The tick chart shown of September 91 Treasury bonds is the shortest time frame available for analysis. The tick chart is helpful in determining possible fills, and places of high slippage or short-term resistance and support levels.

The 30-minute bar chart is the next longer time frame after tick charts. Minute bar charts can be varied usually from 1 to 60 minutes for each period.

They are one of the most frequently used charts for day traders, and provide a good indication of the short-term trend.

The daily bar chart is the most popular time frame. It is in between the short-term tick and minute charts, and long-term weekly and monthly charts. The daily chart might be used to actually provide buy and sell signals, and also provide the intermediate trend of the market.

The weekly bar chart and monthly bar chart of the Treasury bond market yield a good indication of the long-term trend of the market. A trader viewing the market from a longer-term perspective might use a monthly, weekly, and daily chart for trading. Weekly and monthly futures charts are continuation charts and will be discussed further later.

Which is better, a daily chart, or a 30-minute intraday chart? The question is best answered by determining how long you plan to hold onto a trade. A good rule of thumb for trading is to use a chart one size smaller than your intended holding period. If you plan on day trading, a minute bar chart in the range of 5-60 minutes and a daily bar chart might be used. A monthly or weekly chart is of little value to the active day trader except in knowing the major trend of the market. If you plan on holding onto a trade for a week or longer, consider a daily and weekly bar chart. In this case, the short-term intraday chart will not normally provide information that is relevant for longer-term trading.

Many good traders actually look at more than one time frame to get an indication of the long, intermediate, and short-term trend of the market. The daily bar chart is a good start in any trading program, because it is a midpoint between the extremes of short and long-term trading. No chart is superior to another, so you should choose one depending on your needs and trading time frame. Most traders have a favorite chart they stay with, depending on what has worked best for them in the past.