June 23, 2011
- in Uncategorized by schooloftrade
How to Trade the European Market Close
1130am est the European cash equities markets close.
We get more volume, more moves after 1130 as the European traders finish up in their markets and then ‘scratch that itch to trade’ in the US market.
The move occurs from 11:30 to 12:00pm EST. after 12:00 pm you must have a really good reason to be trading, the personality gets very sloppy near the lunch.
How do you know when to look for the move and when to assume it wont be there?
– Very similar to the Golden Lunch
– If we have major news this afternoon or early tomorrow morning (today is FED DAY)(will not occur)
– If we didn’t have any news earlier today (expect the late morning move)(Monday’s are notorious for these moves late with no early day news)
FDAX: Eurex exchange
– I love the DAX, I love its range of price action, I love the movements, and I really love that it settles in EUR and I fund my account in USD. I also like the low commissions (eurex 100% electronic)
– I don’t like the highs margins, the low volume at times making it risky, that new traders really should not start with this market.
– Margins = $2500usd/c (intraday)
– FDAX = 25eur/point ($35usd/point)
– Its NOT a mini, this is the FULL SIZE
– My biggest concern is volume, I need 100k contracts before 800am est consistently to consider this market trade able in the long term.
STICK WITH 1 TIMEFRAME:
“jack of all trades is a master of none”
Come in every day and use the same structure, the same routine, the same timeframes, the same markets, and the same EVERYTHING for a minimum of 10 trading days or 20 trades according to rules.
Jumping from one chart to the next, and then to another, in search of the ‘holy grail’ of your trading….all that happens is you learn NOTHING.
What level of support on the 21 range was present at 10:37 eastern. I was a little confused at what was going on then
It was the trigger line, you can learn about it in the advanced course or on the blog has the basic details.
