A lot of work has been done on calculating the odds of the HOD and LOD falling into 30 minute segments of the day session http://www.mypivots.com/articles/articles.aspx?artnum=20&page=4 My question is just what are we meant to do with this information.
But why would someone(s) go to all the trouble of calculating high/low time of days. My question is purely how to work this information into a tradeable concept. My thoughts on this matter are irrelevant, I am just asking the question.
When I was trading in the pit, if I didn't buy at least one contract at the high of the day and sell one at the low, I wasn't doing my job. Jeff
Well done How did you know that you were at the H/L of the day and not just H/L of session up to the time of the trade
To give you a false sense of value. Plenty of people waste a whole lot of time on needless, useless things. It's dangerous to anchor on these stats. This type of quantitative lookback is partly responsible for Niederhoffer's last blow up.
I didn't know what the highs and lows were, but a big job of locals is to see where the stops are and if a market is trading at a new high, to bid 1/4 cent higher to see what's up there, or conversely offer something 1/4 cent lower to see what's down there. However, I'd look at my trading cards at the end of the session and see if I got anything off at the highs or lows. That review was a good indicator as to whether I was maximizing my potential as a scalper.
H/L whether from RTH or Globex session, futures, are important forms of S/R, that's all. I watch price/volume as there approach.
1) For the "sake" of daily momentum, you want the daily extremes to happen during the first hour and last hour of the primary trading session. 2) Similarly, for weekly momentum, you want the weekly extremes to occur Monday morning and Friday afternoon.
But how can you watch price approaching HOD. Sure you can see price approaching glbx H/L on the RTH or yesterday's H/L but how can you see price approach HOD. My point is HOD is reflective, either from 4:15 EST (ES trading) or earlier if either the H or L is outside the likely range of retreat before 4:15.