Time of day for US stock trading

[Skimbleshanks]

I came across the following statements, relating to time of day in the US stock markets, which was originally published in Tubbs’ Stock Market Correspondence Lessons. These supposedly explain the dominant patterns in the US stock markets.

1. If a rally after the open has returned to the opening price by 1:00, the day is expected to close weaker.
2. If the market is strong from 11:00 to 12:00, it will continue from 12:00 to 1:00.
3. If a reversal from 1:00 to 1:30 finds support at 1:30, it will close strongly.
4. If the market has been bullish until 2:00, it will probably continue until the close and into the next day.
5. A rally which continues for two or three days (as in point 4 above) will most likely end on an 11:00 reversal.
6. In general, a late afternoon reaction down after a strong day shows a pending reversal.

Putting these together, the following patterns (among others of course) can be expected:

a. A strong open with a reversal at 11:00 not reaching the opening price, then strength from 11:00 to 1:00, a short reversal until 1:30, and then a strong close; and according to point 5 above, another strong open the following day.
b. A strong open which reverses by 11:00, continuing lower until 1:00, reverses again until 1:30, and then closes weakly.

Does anyone know any other patterns for time of day trading – relating particularly to the US markets?

Skim

 

[TraderPattern]

Trade the mornings (1st hour) ... they are the most volatile

 

[ned_kelly]

it all works except when it doesn't!

 

[Naz]

There are quite a lot of reversal times on the Nasdaq and one should always be aware when in a trade that things can happen at these reversal times.the trouble is that when you listen to everyone they seem to be all over the place.As trader Pattern says the first hour is the most volatile and if you're astute you can make your days money in this time and pack up.

In the first 1/2 hour i look for possible reversals every ten minutes to 10 0'clock.Key reversals at 10,11 and 2 o'clock.For me a good swing trading reversal time is in the area of 2 o'clock(7pm GMT).Many times this can be the start of the afternoon move to the close.

Nasdaq trading pre market.

1) 8am-9.10am an initial gap and trend
2) 9.10-9.25am a slowdown and pullback
3) 9.25-9.30am pre-0pen anticipation move

 

[hero]

This clock has it all, when the bulls wake up when the bears go to sleep - don't trade without it!

http://www.daytraderproducts.com/strategy/clockstrat_new.html

 

[ChartMan]

That's a gem Hero. Thanks.

 

[madasafish]

Some work I did on timing of S&P movesmay be of interest...

Conclusions on S&P Timing
(Times refer to the end of a prior move and start of a new one.. Move points = new move)
Each day = new move start
18/10 to 31/10
Start
1. 60% of the moves from open finish by 3pm.. Average 4 points
2. Start moves lasting after 3pm usually are big. -average 13 points
3. Each new day = start of a new move.. So meaningless partially

Between 2:45pm and 3: 30pm
1. 20% of all moves start here.
2. Average Move is big: 14 points KEY

Between 3.30 and 4.30 pm
1. 12% of all moves start here
2. Average move is big: 14 points KEY

Between 4.30 and 5.00 pm
Nothing has happened..

Between 5pm and 6pm
1. 5% of all moves average 6 points

Between 6:00 and 7pm
1. 17% of all moves start here KEY
2. Average move 11 points

Between 7:00 and 8pm (after 7:30pm)
1. 17% of all moves happen
2. Average move is 6 points

After 8pm
17% of all moves average 6 points