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How to trade market open for e-minis
- Thread starter enlightedtrader
- Start date
MARK i know u know ur stuff ........bce is not coming across too well ........no class........u have it and always have........no offense intended.........yes, the opening stuff is usually tradable......just not for novices......takes a long time to get a handle on it......the emini markets can only do 4 things .....ever...one anomaly pattern is at market open..........other 3 go on all day long....and night
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I trade both the ES and ER... each behaves quite differently off the open. A lot of days, the ER makes 3pt to 6pt directional moves while the ES sits still and goes nowhere.
One pattern we'll see over and over again is the habit of ER moving off in the direction it gaps open towards. In other words, if the ER gaps open -2pts lower or +2pts higher (arbitrary numbers) it tends to run several points more in that direction, more often than not.
If the ER opens inside the previous day's closing range, there is no directional edge baded on that opening gap pattern alone.
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The ER also tends to make double moves or 1,2,3 patterns early off the bell. For example, it may give a clear sell signal and then immediately drop -2.3pts lower. From there it will come right back up to entry or a little bit above the short signal, then turn and drop -5pts to -10pts from there.
Same scenario in reverse for upside moves. Very common pattern when overall volatility is at normal to high levels.
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There is good money to be made off the open, but it is usually the toughest trade to catch. Later in the session usually offers the prime setups which are likewise easier to catch. I'm not sure what the fascination is by traders for opening bell signals... we could all skip the first 30min of screentime entirely and still make plenty of money.
Something about pent-up exuberance to trade anything moving when the opening bell rings?
One pattern we'll see over and over again is the habit of ER moving off in the direction it gaps open towards. In other words, if the ER gaps open -2pts lower or +2pts higher (arbitrary numbers) it tends to run several points more in that direction, more often than not.
If the ER opens inside the previous day's closing range, there is no directional edge baded on that opening gap pattern alone.
*
The ER also tends to make double moves or 1,2,3 patterns early off the bell. For example, it may give a clear sell signal and then immediately drop -2.3pts lower. From there it will come right back up to entry or a little bit above the short signal, then turn and drop -5pts to -10pts from there.
Same scenario in reverse for upside moves. Very common pattern when overall volatility is at normal to high levels.
**
There is good money to be made off the open, but it is usually the toughest trade to catch. Later in the session usually offers the prime setups which are likewise easier to catch. I'm not sure what the fascination is by traders for opening bell signals... we could all skip the first 30min of screentime entirely and still make plenty of money.
Something about pent-up exuberance to trade anything moving when the opening bell rings?
AUSTINP..hi there.........opening bell fantasy trading is caused by 2 things.........greed and LAZINESS....no discipline...in reality for all but the top pros, it is ignorance.....your 30 min comment is the smartest here yet........but then again, weak competition....
Most retail traders aren't prepared to trade the minute the market Opens.
These traders tend to need to go through an adaption period before they are prepared or feel comfortable to trade.
This is not a guess...I've seen this countless of times in person via watching what others do in the first 30mins of trading.
As I mentioned before...its all dependent upon your methodology.
If the method is volatility based...trading the open is prime time for you and then the rest of the trading day is boring until the volatility returns.
However, if the method is not volatility based...best to trade other periods of the trading day.
Simply, like most trading related discussions at ET...
It really gets down to knowing what type of method is being used along with knowing its strengths and weaknesses.
Mark
(a.k.a. NihabaAshi) Japanese Candlestick term
To tradequicker (formerly known as Porgie),
You need to learn how not to put other traders down while complimenting someone specifically.
It's a shame you haven't gotten rid of this habit.
Here's an analogy...
Imagine walking into a room that's full of people talking about the markets.
After listening to the conversations for awhile...
You walk over to someone and say it loud enough for others to hear the following statement.
You just made the smartest comment out of all the comments I've heard so far...others here are weak.
I don't know if you do this everytime but I do know that every thread I've participated in here at ET and you would later post comments in that same thread...
You have done this.
Simply, show some courtesy via either toning down your antagonistic remarks or post your compliments without chaining them with negativity towards others.
Mark
Thanks, Mark.Quote from NihabaAshi:
You said it much better than me...with less words.
Mark
(a.k.a. NihabaAshi) Japanese Candlestick term
Actually we're saying a lot of the same things and just trying to be helpful. You've done a great job of giving people some really useful directions to look in. No one can tell you how to trade but we can be helpful in pointing people in the right direction to learn.