The End of Day Run

[VisionTrader]

Does anyone plan their trading style around the end of the day run, that often occurs in the opposite direction on the ES. (or others).

I do not have any historical numbers on this, but it seems to be there, more often than not.

 

[Ditch]

I make sure not to miss the last hour of the day session, for it often displays the best moves.

 

[VisionTrader]

This move occurred again today, although not as strong.

 

[TMTrader]

The end of the day reversal can be predicted quite accurately according to the developments during the day. Keep a close watch on it and you will see...

When I'll finish some of my current research I might share it here.

 

[Brandonf]

Watch the market over noon. That will give you some of the best clues about the action into the close.

Brandon

 

[Monsoon]

say the day was a down day.. is teh last hour reversal due to the buying back of intraday short postions?

 

[PoundTheRock]

Jeff Cooper calls it an "undercut". Whatever the pattern is, it manifests as a double bottom, prices look like they're about to break, and then the reversal within the last hour occurs. It's happened the last 3 days. Macro hedge funds getting flat at the end of the day have really magnified the effect.

 

[TMTrader]

Quote from Monsoon:

say the day was a down day.. is teh last hour reversal due to the buying back of intraday short postions?

It depends what kind of down day, not all down days are the same.

 

[TMTrader]

Quote from PoundTheRock:

Jeff Cooper calls it an "undercut". Whatever the pattern is, it manifests as a double bottom, prices look like they're about to break, and then the reversal within the last hour occurs. It's happened the last 3 days.

As far as I've been watching it, a double bottom is not necessary for this reversal to happen.

A double bottom close to the last hour of the day is always a reasonable possibility on a consistant down day, only in the sense of testing how far this day can continue going down.

 

[CalTrader]

In addition to opening plays, the last hour - or even last 30 minutes - is useful. Depending upon the dynamics of the market day certain sets of issues often have nice plays within this timeframe. Just make sure you have a well defined trade strategy / exit point if the postion is not meant to be held unhedged after the close........