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TRADING HOURS - "post trading hours" and Lots of Action!!
TRADING HOURS - "post trading hours" and Lots of Action!!
I was going through an array of different Markets and timeframes last night, and in doing so, I found we seem to be certain "Trends" for when certain Markets tend to Have good setups and trading action during Post US trading hours
Examples:
Gold seems to trade around the 7 - 8 p.m. cst
the ES seems to trade and have good movement/action around 7 p.m. cst
What is moving these markets around the 7 p.m. cst. hours?
It can't be the European or Asian markets?
Can you help answer these questions from other members on NexusFi?
@ondafringe that's a good site indeed. And you're right about Tokyo, and the other Asian markets impacting the US equity futures during this time.
@vpd1952, roughly speaking, the "US session" (US regular trading hours) is followed by the "Asian session," and in the early morning by US time, by the "European session." They are named according to the traders who predominate during those times.
Asia will start in the late US afternoon/early evening and extend into the early US morning hours. Europe starts to come in between about 2:30 AM (US Eastern time) and especially 3:00 AM (US ET.)
You can see the changes in volume participation in this 30-minute ES chart of the last few days (times are US Eastern Time.) You can see how volume begins to change after 2:00 AM ET as the European traders start to come in (there's a 6 to 7 hour time difference, depending on where in Europe you're talking about.) Then there's an explosion of volume at the New York open at 9:30 ET as the US traders enter. At around 11:00 to 11:30 ET, volume declines as the Europeans exit. Then it climbs back up into the NY close, and the cycle repeats.
If you run this chart any time of the year, any year, you will see this same exact pattern:
You can also see that, especially during the European session, price can get some impressive moves going. This is where the "gaps" that show on pure regular trading hours charts come from. You can also often see significant trends in the earlier Asian session.
There are traders who consistently take advantage of both these periods.
I mainly know about equity futures, but markets now are active enough around the clock to present trading opportunities outside of regular hours in a lot of instruments.
I experimented once in getting up early enough to be able to trade ES from 2:30 AM ET and on. The action was definitely there, but after a couple of weeks I was wrecked physically from sleep disruption and had to stop.
You can still do well by starting somewhat later, but still in the early morning, or alternatively, trading the Asian session in the US evening. (I never did this, but clearly it's there if you want it.)
You can do the same chart for other instruments, and gold is certainly an international commodity, and judge the opportunities yourself. There will be some.
Good luck if you try it.
Bob.
When one door closes, another opens.
-- Cervantes, Don Quixote
There is book on amazon called "The Price in Time: A Powerful High Profitability Day Trading Method"
While that is for forex, I insist that you can use it in almost any market which has some other market opening during its active hours.
In fact there are quite a few people who just trade "session" IB and VWAP's actively. Although that's not what I do, but if I was to trade US futures market I would certainly start there, especially if I don't use other tools that might cover for volume fluctuations and its effect on price action over that period.
Please note I'm neither author nor own the printed book, I've skimmed though digital one and my sources were free.
//Don't tell that to anyone//
