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Trading the RTH Open


The RTH Open (9:30 EST) is an interesting point of entry. To make money we need 4 things 1. Time 2. Price 3. Volume 4. Direction. One benefit of trading the open is that the trader has a forced entry as the time, price and volume portion of entry is taken care of. Secondly you can chose to trade once only and keep yourself stress free for the rest of the day. So all we have to look for is a profitable direction. Now the question is whether to buy or sell the 9:30 Open. Various options are 1) Trade in the direction of previous day RTH close (4:15 EST)(Gap fill theory). 2) Trade towards the previous days RTH Open (Volume is the biggest magnet). Trade reverse of the 9:29 EST candle i.e. if it is a Red Candle Buy and if Green Sell or reverse i.e. SELL for Red and Buy for Green. I look forward to your inputs
Today went long at 1094 exited at 1098
Ok , I didn't know overnight traders stop trading at 8:30 ? Why is there so much volume when those reports hit at 8:30....Just trying to clear this up so we can get to some better questions but for now I want to make sure we are working from the same page..thanks and congrats on the two winners ...
Originally posted by ak1

The overnight market closes at 8:30 est and then the smaller US markets open. So take note of the close at 8:29:59.(Close of the 8:00 est 30 min candle) i.e. where the overnight traders stop trading.
Compared to this next morning where does the overnight market close at the same time. If this close is higher the trend is up and longs are preferred. If close is lower the market is week and shorts are preferred.
At 8:30 est if Economic news hits the market all the price action is focused around it for the next 1/2 hr. If no news then the price action is predominately in small US trader hands.After 8:30 est the next hour is eratic and often I find it irrelavent to what will happen at the RTH open. So I consider the 8:30 est close very signaficant and kind of giving direction to RTH once the economic data effect is over. For investing the whole market structure/mood is more signaficant than news.
going long at 1095.25
am short at 1097.5 hoping for 1094.5 made a mistake and should have shorted 1098.5
Due to that 1 pt mistake had to extend SL by 1 pt. Rise is up today.
I assume the S/L is 1102.5 ?
Yes 1102.50
Originally posted by ak1

going long at 1095.25


Well today was a day where I broke my rule and traded on an impulse. I was poised to go long from the start but got aggresive trying to catch a train that might go south and turned out it was a space schuttle heading north. Well I paid 5 pts for being impulsive. The market was balanced as yesterday's 8.30est close was exactly equal to today' 8.30est close and I was anticipating choppyness at open...............
Aki,
Re trading RTH, "get the closing price at end of overnight trading session day1,get the same info for day2. compare if day2 higher than go long rth and conversely." Correct or no. Tnx Gus
thank you stockster.