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frenchBreadPizza
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Trading Hours and Gaps
frenchBreadPizza replied to frenchBreadPizza's topic in Swing Trading and Position Trading
Apologies for posting this in the wrong section. Hopefully a mod can move this to the beginner section. -
Gaps for an equity exchange like the NYSE are relatively intuitive. The market closes at 4:00 pm EST and any buying or selling between then and 9:30 am the next day influences the open price. My questions are related to exchanges whose trading hours extend beyond the typical wall street 9-5. Contracts on CME Globex, for example, trade from 5:00 pm the previous day to 4:15 pm the next day, often with a break from 3:15-3:30 pm. Enough with what you already know. Here are my questions: 1. Where does one trading day end and the next begin? Does it switch over at midnight, despite the contract trading continuously through that time? 2. From what time period do "gaps" arise in the market? If trading occurs 23 hours a day, I struggle to imagine how a large gap could occur. 3. Some free market data sources, tradingview.com is one that comes to mind, only show changes in CME prices from 9:30 am to 4:00 pm. Are they condensing the time period for their own convenience? If so, does "after hours" trading show up as a gap the next day? Thanks for any help or reading suggestions. Happy trading.