DOW TIMING - 3:30pm

[DESKPRO]

Has anyone noticed that more often than not the DOW does a reversal between 3:20-3:35, aLSO THE SLOW STOCHASTIC on Big Charts gives a goos indicator around this time of such a reversal? (80 to sell 20 to buy). Any reason for this?

 

[rossored]

An article in the March/April copy of "traders" mag referred to the 3.20pm-ish time as a common reversal time, along with 2.50-3.10pm and seven other common times : the main factor for the earlier one, and the big market volatility at open is the execution of orders that have been given overnight, and are placed first thing in the morning, hence thats why a lot of people advocate staying out of the market for the first 20mins.

The complete list of times the article said to note were (all in EST)

9.50-10.10
10.25-10.35 (your one)
11.15-11.30
12.00-12.15
1.15-1.30
2.15-2.30
3.00
3.30

Some of these you could probably put down to lunchtime trade. The others I dont know about, but there are some fairly good results to be found backtesting these theories. I dont know if these times are something that Sunseeker uses on his daily US chart...

 

[DESKPRO]

is the whole article available online by any chance?

 

[rossored]

I wouldnt have thought so, but if you interested I'll scan it in and upload it to the site for the benefit of everyone.

In fact, I'll do it anyway on my next posting. Its too hot to do anything this afternoon, so I may as well do that!

 

[rossored]

Here you go...

This is taken from one of the first, free issues : if anyone objects to its posting then please tell me and either I (or one of the mods) will happily remove it.

You'll have to excuse my scribblings in the margin , but otherwise it's fine.

 

[Sharky]

Hi Rossored, there appears to be something wrong with that particular attachment. Do you want to try emailing it over to me and I'll see if I can figure out why it didn't upload?

 

[rossored]

Okay, two probs with the file :

1 : its too big for the website (1.55Mb)
2 : strictly speaking, Sharky tells me we cant post it anyway.

So, Deskpro, if you want it, then PM me and we'll sort something out

 

[DESKPRO]

Thanks for the article very interesting. The 3:30 ish reversal seemed to be fine for a couple of weeks but last week has not given good results. It seems that taking a position sometime during the 3-4pm slot appears to give most opportunity for profits due to the volatility during this period. Any one know of any other theories that can be applied to take a position during this period.?

 

[options]

Also pays to keep an eye on the mini dow/ftse futures at around 1.30 Gmt. Particularly in a slow market and during our lunchtime chop. Large moves often happen then and can give you a useful ride.

"Lunch is for wimps."

 

[juanbyte]

Hi Deskpro

Reversals and big moves often happen with the release of breaking market news, this often comes out at set times.
To get a list goto http://biz.yahoo.com/c/e.html

regards

juanbyte