Pre-market data on or off while trading the open? And it's affect on indicators.

[osaga]

While trading the open I can choose to turn pre-market data on or off. Turning this data on or off affects certain indicators. Example the initial direction of the 9ema at 9:30am will be dramatically affected.

My question is... do you think most equity day traders are trading with pre-market data on or off? Or another way of asking it may be... do you trade with pre-market data on or off and why?

The reason I ask is I would prefer my indicators to be in line with how the majority of traders see it on their charts.

Any relevant and thoughtful answers to these questions would be greatly appreciated.

Thanks so much for the help!

 

[lindq]

While trading the open I can choose to turn pre-market data on or off. Turning this data on or off affects certain indicators. Example the initial direction of the 9ema at 9:30am will be dramatically affected.

My question is... do you think most equity day traders are trading with pre-market data on or off? Or another way of asking it may be... do you trade with pre-market data on or off and why?

The reason I ask is I would prefer my indicators to be in line with how the majority of traders see it on their charts.

Any relevant and thoughtful answers to these questions would be greatly appreciated.

Thanks so much for the help!

I can't think of a single reason why you wouldn't want to see prices leading to the open.

 

[Apollo13]

Apart from the fact that the liquidity and the spreads are not very "realistic" in the sense that when the market actually opens it tends to jump quite far away from these prices.

At least, that's my experience. Your mileage may vary.

Good to possibly get an indication of which way it might move on the open, that's about it for me.

Because there is (usually) not great volume I consider that these trades are not a true reflection of the market.

Happy to be better informed by others of course

 

[userque]

While trading the open I can choose to turn pre-market data on or off. Turning this data on or off affects certain indicators. Example the initial direction of the 9ema at 9:30am will be dramatically affected.

The EMA is designed to smooth the price action, etc.

I'm sure you've noticed that the EMA, when transitioning from the previous day into the open is usually smoother when premarket data is used.

...do you trade with pre-market data on or off and why?

I leave it on (but not for indicators...for the price action). While premarket data may not be a 'perfect' representation of normal supply and demand in this regard; it is less imperfect than leaving it off.

Consider that premarket data as a form of interpolation.

My question is... do you think most equity day traders are trading with pre-market data on or off?...

I would guess most have it on.

The reason I ask is I would prefer my indicators to be in line with how the majority of traders see it on their charts.

Maybe consider, firstly, picking and adjusting your indicators based upon your research and/or how well they work for you, via manual or automated back-testing.? Then, maybe adding a separate chart configured as 'most' traders would configure it?

This way, you have your signal and the signal to which you believe 'most' traders are looking. Then, you'll have the beginnings of a system: Enter when your signal agrees with 'most' traders.

 

[Sprout]

While trading the open I can choose to turn pre-market data on or off. Turning this data on or off affects certain indicators. Example the initial direction of the 9ema at 9:30am will be dramatically affected.

My question is... do you think most equity day traders are trading with pre-market data on or off? Or another way of asking it may be... do you trade with pre-market data on or off and why?

The reason I ask is I would prefer my indicators to be in line with how the majority of traders see it on their charts.

Any relevant and thoughtful answers to these questions would be greatly appreciated.

Thanks so much for the help!

The RTH has different characteristics than the extended. If you are stuck on indicators doing the ‘carryover’ exercise would be meaningless. Doing the carryover would demonstrate continuity of context but one would have to do bar-by-bar analysis.

If you are attached to indicators, the stochastic indicator thread in the early to mid 2000’s is epic and can accelerate one’s learning if you assimilate the material vs skimming it.