Can someone tell me if the high or low of day normally happens in the start or ending of the day?
- Thread starter 1a2b3cppp
- Start date
By 9:35 AM EST, there is about a 20% chance that the high OR/AND low of the day in the S&P500 has been made.
By 10:05 AM EST, there is about a 55% chance that the high OR/AND low of the day in the S&P500 has been made.
By 11:00 AM EST, there is about a 90% chance that the high OR/AND low of the day in the S&P500 has been made.
By 10:05 AM EST, there is about a 55% chance that the high OR/AND low of the day in the S&P500 has been made.
By 11:00 AM EST, there is about a 90% chance that the high OR/AND low of the day in the S&P500 has been made.
where`s that from?
...the high OR/AND...?
That's certainly not correct.
OP,
Good questions, but you need to answer them yourself.
He probably does his own backtesting on historical data that he has or he got it from a website (subscribes too) that publishes historical / seasonal market tendencies on major market indices, futures or he has data on inter-market & intra-market patterns.
Another possibility someone else talked about their own backtest results at another forum and he remembers the discussion.
A serious trader should have that info or can easily get it from their own research of historical data involving whatever it is that they trade.
Yes...its very useful info to know and maintain by yourself that can be used to develop profitable trade strategies.
Thinking outside of the box...if you want unusual consistency in your trading (minimizing drawdowns)...you'll know when to switch from one strategy to another strategy when market conditions change.
wrbtrader
Another possibility someone else talked about their own backtest results at another forum and he remembers the discussion.
A serious trader should have that info or can easily get it from their own research of historical data involving whatever it is that they trade.
Yes...its very useful info to know and maintain by yourself that can be used to develop profitable trade strategies.
Thinking outside of the box...if you want unusual consistency in your trading (minimizing drawdowns)...you'll know when to switch from one strategy to another strategy when market conditions change.
wrbtrader
I know I read from an article that the high and low of the day is usually, established after 30 minutes of trading or by 7:00am ET. That is why a lot of traders, especially day traders use those highs and lows. If XYZ goes above the high, it probably, will go higher during the day, if it takes out the low then, it will probably, go lower. Don't day trade so, do not pay attention to it at all!
It can be backtested and you'll see why it's a losing approach for daytraders considering the nature of daytrading itself. Simple example, someone does the study on a technology index but doesn't disclose its the technology index but everyone else reading it will then try to apply it to everything else (stocks, futures, forex).
By the way, I too saw a report about such and that was November 1989 involving AMEX composite index or maybe it was the Nasdaq Composite (hard to remember...it was a long time ago).
I think AMEX was purchased by another exchange. Thus, it has a new name or merged into something about 10 years ago.
wrbtrader
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I check the s/p 500 immediately after reading this, it seems to work for the past 20 trading days