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Who trades futures in the "wee" hours?

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Tampa FL
Trading Experience: Advanced
Platform: Sierra Charts/TOS
Broker/Data: Future Path/TDA/S5
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KatieD View Post
yes, effectively. Although, in my particular markets, I am convinced that sometime the movement is being driven by new information in sympathy with Europe and other times the movement is just a random walk which revisits levels of the previous day session and later prepares for next. With that in mind, I prep for the session by locating points of interest from the day session while using volume profile to form an opinion about where price may start heading by the end of my session and into the next day.

That being said, it is frustrating because it is such an in between session. Especially with CL and GC, price will get stuck in a wide consolidation (usually based on levels from the regular session). I will wake up the next day to find my hypothesis was correct!..... but did not play out until 10:30. Using volume profile in micro composites is still helpful in looking for trade set ups. It is the context that can be tricky to determine.

I don't want to make excuses though. This is the session I have, and I am going to figure it out!

I trade the Asia session and at times the Europe session, although the latter messes up my sleep schedule being in the US, EST.

You are for the most part correct about price levels and how things move. The pace is much slower than the the US RTH session and that's a good thing.

I look at it this way, @ 2000HRS (All times EST) another major market opens (Japan) and the US (/ES specifically) will follow that market typically within levels that have been set during the day, RTH session.

In addition the /ES will follow our (US RTH) prevailing trend. The /ES trend can reverse, at least temporarily, if the Asia markets show to much weakness, but for the most part the support/resistance levels during the day will hold. At 2115-2130HRS the next set of major markets open (HK / China) and the same holds true. Often after the Japan move, the /ES will consolidate and then move again with the HK and CNY market open.

Same is for the most part true for the Eurozone session, @ 0200HRS, EST another market opens and @ 0300HRS, EST, the "Big Dog" of Europe opens (Dax) and again we follow their movement. If you follow the global markets closely, you'll see patterns and rhythms within the /ES that form, retrace and oscillate around the S/R levels.

Many people discount the ETH session, but there's plenty of opportunity there to make $$. One word of caution is due to lower liquidity news events can trigger big down moves (think Brexit, Trump election, Syria bombing, etc.).

I occasionally trade /CL and /GC in the overnight, but typically do this in the 1800-2100HRS time frame and mainly if the /ES isn't moving or I missed the /ES move.

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