They Do It While Most Are Sleeping

[UrmaBlume 10]

Almost every day the extreme you would most like to trade is established during overnight trading.

 

Last night at 0400 PST there was strong coordinated selling across all three US Equity Futures as you can see in the chart below.

 

The second chart bleow shows an overlay of the nite session in red and the day session in blue. Notice how on most days the most desirable trade location for the session is shown in red which means it happened BEFORE the open of the day session.

 

 

[JBWTrader 10]

Hey Pat

Makes a lot of sense mate...I guess it requires a lot less dollars to get into position for the next day....take for eg last night going down and today (so far) is an upmarket...a bigger ride in total for those making the market.....

 

Thanks again !

Best

John

[jonbig04 10]

Agreed. Globex highs and lows are no joke, and I no longer skip these hours. Granted, I have no life. At any rate these levels also are often significant during RTH too.

[robertm 10]

Almost every day the extreme you would most like to trade is established during overnight trading.

 

Last night at 0400 PST there was strong coordinated selling across all three US Equity Futures as you can see in the chart below.

 

The second chart bleow shows an overlay of the nite session in red and the day session in blue. Notice how on most days the most desirable trade location for the session is shown in red which means it happened BEFORE the open of the day session.

 

You can split some days into two different sessions. If you get a strong move in the pre-market (European session), you often just get sideways action in the cash session, and visa versa. If you only trade the cash sessions it's worth noting this as if you're already at the highs based on average daily range, there probably isn't much more to come unless a reversal occurs.

 

Using the European/night/pre-market session to get set and letting the momentum of the day session sweep through your profit targets is another option, but again the range needs to be considered if you are wanting to be out later that same day, and news announcements often get in the way whipping price around too much, so pick your days carefully , and do plenty of backtesting!

[brownsfan019 17]

Almost every day the extreme you would most like to trade is established during overnight trading.

 

Last night at 0400 PST there was strong coordinated selling across all three US Equity Futures as you can see in the chart below.

 

The second chart bleow shows an overlay of the nite session in red and the day session in blue. Notice how on most days the most desirable trade location for the session is shown in red which means it happened BEFORE the open of the day session.

 

Interesting post Pat, but unless you are automated and using your firm's indicators, there isn't much a person can do to take advantage of this information. I agree that many good movements/setups can occur while we are sleeping but personally I've found that looking back at trades that might have occurred if I was awake is not a good use of my time.

 

Are you and your traders trading these setups via programming? Would be really nice to wake up to some nice profits while you were sleeping.

[jonbig04 10]

Actually I find that many of my setups happen in the PM. I just set my alerts like I do during the day. If they go off at night, I wake up and place the trade, and hopefully go back to sleep with my targets set. I really don't have a set time of day when I trade, its just when ever my setups occur and alerts chime. Come to think of it, the last trade I took woke me up with the "target filled" sound, then I went back to sleep lol

 

Thats just me though.

[Frank 10]

Almost every day the extreme you would most like to trade is established during overnight trading.

 

I would like to see this supported with some statistical analysis.

[Kiwi 16]

Think about these for a second. Wisdom might arrive. Or not.

 

 

Strong selling requires strong buying.

 

Most paranoid fantasies are paranoid fantasies. No one is following them.

 

Gurus require acolytes.

 

The king really wasn't wearing clothes.

 

If you can't see the sucker in the room it's probably you.

[ehorn 10]

Think about these for a second. Wisdom might arrive. Or not.

 

Strong selling requires strong buying..

 

Have you heard the term "cascading" or "disorderly markets"?

Edited October 17, 2009 by ehorn

[Kiwi 16]

Strangely enough, yes.

 

The interesting thing is that you define strong in a different way to the one I used and hence wonder whether I have heard the quoted words used to define things that happen in markets.

 

But, even if I have heard them, do I assign the same meanings to them that you do? And if different people assign different meanings to simple words like "strong" then what does that mean for markets - good things I'd suggest.

 

What does it mean for trading chat boards? Disagreement and Gurus. And kings with and without clothes. They sure are pretty though. Who's the sucker in the room?

[ehorn 10]

Strangely enough, yes.

 

The interesting thing is that you define strong in a different way to the one I used and hence wonder whether I have heard the quoted words used to define things that happen in markets.

 

I guess I am the sleepy sucker in the room then...

 

Good evening

Edited October 17, 2009 by ehorn

[Tams 20]

Someone who does not know, and does not know that he does not know, is a fool: Shun him.

 

Someone who does not know, but knows he does not know, is a child: Teach him.

 

Someone who knows, but does not know that he knows, is asleep: Wake him.

 

Someone who knows, and shares what he knows, is a wise man: Follow him.

 

 

Have a good weekend

[madspeculator 10]

Someone who does not know, and does not know that he does not know, is a fool: Shun him.

 

Someone who does not know, but knows he does not know, is a child: Teach him.

 

Someone who knows, but does not know that he knows, is asleep: Wake him.

 

Someone who knows, and shares what he knows, is a wise man: Follow him.

 

 

Have a good weekend

 

I understand why you wrote that, but the real one goes like this:

 

He who knows not, and knows not that he knows not, is a fool...shun him.

He who knows not, and knows that he knows not, is willing...teach him.

He who knows, and knows not that he knows, is asleep...awaken him.

He who knows, and knows that he knows, is wise...follow him.

 

For other variations see Knows and Knows Not

 

-Madspeculator