Futures Overnight and Floor (pit) Session

[ptcman 10]

Hi.

 

I always found difficult to divide the data produced during the floor session and the overnight session, Globex.

 

With the global markets, traded almost 24h on Globex, how meaningful can the floor session data be?

How traders which trade only during the floor session deal with the Globex session?

When they are compiling their data to generate whatever signals they use are they using the floor OHLC or the entire day, including Globex, OHLC?

 

At this moment, Crude is trading on Globex at $0.94 above yesterday's floor session close. This will generate a up gap at the floor session open.

 

The point is, is it better to look at the trading day as a all, meaning, floor and Globex together or separate both sessions, using their data separately.

 

What can be the better way to read them?

 

Regards.

[MadMarketScientist 11]

I'm not sure I will follow/answer your question correctly but here's my take.

 

I have found if I am trading a daytrading system that likes to take entries right after the opening bell of the floor it is better to chart the Globex, especially if I'm trying to get in synch with the pre-opening.

 

If I'm following an approach that waits a few minutes until after the opening bell I have found filtering out the globex is best.

 

For me that has been the way to go -- the idea is if you trade immediately and get that gap, you almost always will get trapped by a technical system going in the direction of the gap, and more times than not you'll be faced with a quick fade and loss.

 

Doing the above prevents that.

 

MMS

[ptcman 10]

Thank you for your answer.