Which 'open' to consider?

[wowpravin]

Hi,

For trading system development, I am currently analyzing the EOD data of various markets. However I am not sure which market 'open' should I choose - the actual market open as stated by many market data providers or the futures' open?

The market open used by data provides like Yahoo/Google is quite near to the previous close - and doesn't take into account the gaps.

Which one is more effective in analysis? What do you use?

Thanks in advance,
ps

 

[DionysusToast]

Could you be a bit more vague?

Forex, Futures, Stocks, Bonds????

 

[tomorton]

Basing TA on the Open value is fraught with risk. For example, different data providers quote the FTSE100 Open as the previous day's Close, the value at 08:00am or the value at 08:02am. Overnight gaps mean such discrepancies can be significant. The FTSE is an index that actually has a closed session overnight, i.e. it is not being continuously re-calculated. But spreadbet markets derived from the FTSE (as well as Forex etc.) are open throughout the 24 hours, so Open in that context has much less meaning.

 

[the hare]

My advice is pick any (toss a coin to decide if you must) then get stuck into the reseach ASAP and get your feet wet.

 

[wowpravin]

Thanks for all the replies.

Yes it has been my experience - data for Open is quite erratic between the data providers.
Can any one please share a good source of reliable data for futures' [DJIA/FTSE]?

 

[Citizen2007]

If you are trading the Futures , then the Futures Open would be too important for you to overlook. This is often gapped up on the open, exhausting the possibility of the first trade in the direction of the trend on the underlying instrument.

In terms of analysis, i personally use the open of the actual market ( I assume here you are referring to the underlying instrument), as all other analysis will be based on the actual market.

 

[MGBRoadster]

I use EOD Futures data when I'm developing a strategy, but I check it against intraday futures data before going live. This is because there can be significant differences between the intraday prices (that we trade) and the EOD data.

For example the e-mini S&P Contract's "settlement price" (ie EOD Close) is calculated by reference to the price of the pit-traded full-size S&P Contract immediately before 15:15 Chicago time. Then it gets complicated: Except on the last day of the month when it's 15:00.


Chris