The best time of day to enter/exit

[charttv]

Ever noticed that stock markets tend to make either their high or low within the first hour of trade? I needed hard stats to back up my hypothesis so this is what I did:

http://www.pollux.biz/charttv/mar1106/mar1106.html

I am compiling stats on only one market (the aussie S&P ASX 200) so far but plan on compiling stats for many more. I thought it interesting to focus on the time such extremes of range were made rather than where they were made.

 

[Trader333]

There is a strategy where you mark the high and low made in the first 30 minutes of trading and then go Long if price moves through the high or go Short if price moves through the low.


Paul

 

[new_trader]

Ever noticed that stock markets tend to make either their high or low within the first hour of trade? I needed hard stats to back up my hypothesis so this is what I did:

http://www.pollux.biz/charttv/mar1106/mar1106.html

I am compiling stats on only one market (the aussie S&P ASX 200) so far but plan on compiling stats for many more. I thought it interesting to focus on the time such extremes of range were made rather than where they were made.

This may be of interest

http://www.tradertalk.com/tutorial/opgap.html

 

[walker123]

There is a strategy where you mark the high and low made in the first 30 minutes of trading and then go Long if price moves through the high or go Short if price moves through the low.


Paul

yes trader333 i did read that many traders are successful with that strategy

 

[pezzutti]

Statistically, gaps are filled more often than not. Fading the gap is a trading strategy, which is used with many different variations. If the gap is filled for the day and prices move back into their prior trading range, then it may be seen as a failure for the news to take hold and could represent a reason for reversal.

If you look for high-probability trades, fading gaps (perhaps even a partial fill) can be part of your set of short-term strategies. The action should be completed very soon. Prices should start the fading action in a few bars. Unfilled gaps often open the way to powerful trend days. They do not happen often, but they bring very good profits.
this is how the market action develops after the open

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