Trade between close & next day open ?

[EagleRock]

Trade btwn cls & nxtDay opn ?

Do you make trade after market close due to seeing what you believe to be start of a good/fast trend to continue past next days opening?

Take a look at (BOOT)

16/07 mktClose654 -> 17/07 mktOpen640 -> and now 14:30 about 628.
(at 15:20 still at 628 - guess time to sell-to-close?)

I saw in morning on daily line chart.

Would be interesting to hear views and how to's in this area.

Thanks
Tim

IF wrong area to post in tell me and will move..

 

[oatman]

Generally speaking we used to consider a holding a position closing at the day's highs or lows for follow through next day.

Cheers

 

[EagleRock]

Oatman

Sorry, but I do not understand your reply
(well ok.... I admit it then - i'm just thick... )

I forgot to mention that finspreads allows ftse100 trades up to 21.00 - allowing opening position prior next day market open.

This is what prompted me to ask orig question.
I'm not actually sure is sensible but seems if can identify scenarios such as shown by (boot) and open a position the evening before....

Regards, Tim

 

[bonsai]

slightly different overnight ploy.

when ftse futures close, the sb's will 'play ' with the price as
it follows the U.S market.
but they will 'invariably' bring the price back to within range of the
futures close.

if , during US hours, it moves too far away, there is regularly
a simple trade as the sb's bring the price back.
That high or low of sb price often marks the extent of the
following days range.

 

[EagleRock]

Bonsai

I think I understand...

(with ref to my orig example boot)

when ftse futures close, the sb's will 'play ' with the price as it follows the U.S market.

So, the sb may float boot up or down in sympathy with U.S...

but they will 'invariably' bring the price back to within range of the futures close.

So, boot price moves down to around 628 and then around 21.00 the sb brings price back to around 654 (its lse cls price)

if , during US hours, it moves too far away, there is regularly a simple trade as the sb's bring the price back. That high or low of sb price often marks the extent of the following days range.

So that 'moving too far away' may indicate that 628 (or down trend) is next days potential?

What mean 'regularly a simple trade'?

In summary:
I decide that boot is of interest for possible next day gap opening scenario with attendant trend move.
Having seen sb price movement previous night and (direction away from lse cls price). I could open position just before 21.00 and pickup:
(1) gap between my 21.00 sb price and next mornings open price and
(2) price movement as progresses during day toward possible 628 (as in example)?

(assume I got previous evenings TA correct of course)

Thanks, Tim

deary me, 'fraid I gotta take it one syllable at a time

 

[bonsai]

sorry eagle
I was talking about trading ftse not stocks
mea culpa.

 

[bonsai]

taking a statistical theoretical hypothetical situation.
assuming the dow moves up
if you allow for a gap opening of say 20/30pts on ftse
then if sb's go substantially above that you will have the opportunity of a trade back. Its often easy to see the top
before they start bringing it back.

but you need an sb account to track their prices.
d4f provides real time graphs of their prices.
its an opportunistic trade so in that respect its like your Boot
example. (doesnt happen every day)

 

[EagleRock]

Oh you devil...!
I had to laugh Bonsai...
Boy - I sweated 'cells over that reply
No problem guy
- is good to attempt thinking once in a decade or so!
Thanks for putting up with my dodgy thought processes!

Hey wait a mo. Then maybe my thinking can be applied to ftse index?

 

[EagleRock]

Ok, I'll take on board that snippet
As you say strictly "taking a statistical theoretical hypothetical situation", that is interesting.
I just got finspreads sb, so will poke around more and see what's going on.
Need to learn and understand - so is good to have focus.
thanks.

 

[bonsai]

fins is ok but 2 things

they dont provide the graphs you may need.

make sure you use the right instrument. They have funny cutoff
times. You will need the next days ftse.
click on 'I' for info if uncertain