How much weight do you put on overnight price action?

Depends upon what markets you're talking about and the results of your trade signals.

Simply, your test results should tell you if overnight price is something you should only be trading, trading with RTH or not trading at all.

Thus, its really not an opinion...just follow your test results to determine the merits of the overnight trading session.

Another issue...some traders can only trade the overnight trading session or only trade the regular trading session due to limitations from their job. Thus, for these particular traders, it has nothing to do with test results.

For example, if you work regular work hours during the day...the night or overnight trading session is the only time you can trade even though their backtest results reveal to the trader that the trade method is more profitable during the regular trading session.

wrbtrader

 

%%
Some may find it useful;
for example, night owl types.
I find a certain amount of night time sleep+ rest helpful/so irregular late hours has little interest for me. I may glance sometimes @ price premarket + post market + may not...........

 

Your are right. I would like to trade 24 hours but sadly have to sleep ;-) Here in Europe the ETH times conflict with my sleeping time. 9PM East time is 3 AM CET. 6 PM East would be the latest i could trade. Could restart at 1AM East which is 7 AM CET. Or i must drink more coffee

 

Minor gap up continuations are often best, see BIDU NIO now for example

 

i used to think RTH (or the SPY) has more importance, but IMO very often “important”prices you want to hit during the RTH day get touched at night. having a bigger account, and holding or entering overnight, has the potential to take advantage of those price moves that are not always traded the next day. Not sure if this applies to regular individual equities as much.

 

In my field, forex, overnight prices (i.e. from the Asian/Australasian business hours) are usually unimportant in themselves and print with a reduced total range and range per hour. But this is helpful in a strategy based on a sudden increase on price volatility, like a London opening range break-out or Big Ben. In effect, the Asian market's range is treated as if it was an Inside Bar and a buy order and a sell order are set above and below the overnight range to catch the break-out.

Forex daily highs and lows are rarely set in Asia.

 

Interesting
Is it easier to move a thin market after hours?

 

If you are trading US index futures, index based ETFs or leveraged index ETFs you should be aware of the ETH highs, lows, vwap of the index futures markets. They will be the first levels tested when the RTH begin.