The price action during the period near the end of RTH through the open of the European markets is less reliable for constructing proper trailing stop strategy.
My stops are variable they depend on TOD, volatility, S/R, recent price behaviur and last but not least how well i have been doing that day. When down for the day I tend to tighten up, when i'm up i lighten up.
So, any ideas on how we will open tonight? Anyone already positioned or looking to enter at the open?
FYI The exchange sets a 5% limit in extended trading hours either up or down. Opportunity exists for situations like this because if no agreement is reached by globex open then a shakeout to the downside can occur on thin volume which will be bought because everyone knows that by Monday night we are gonna have inked a new debt ceiling.