Link: TraderFeed – Volume and Opportunity Intraday

Apr 18, 2007: 9:18 AM CST

Dr. Brett Steenbarger posted an excellent article and breakdown of average volume (ES – S&P e-Mini) per 15 minutes each day.

Not surprisingly, he found that the most active times of day (in terms of volume) were nearest the open and close (creating a data “smile”).

He posts a volume chart which is helpful and can be printed and posted next to your computer to compare average volume per time of day.

Also, he noted an excellent observation:

One of the great, unrecognized reasons so many daytraders fail is that they expect the same patterns and setups to produce the same results at different times of the day

Markets trade differently at different times of day, and they differ from day to day.

The same profit targets and stops for a particular trade idea may lead to profit at one time of day and whipsaws at others.

This is particularly true and I have experienced this in my own trading, just didn’t have the exact words for the concept. I have identified that my best opportunities and trade success results from the 9:00 – 10:30 (CST) timeframe, and I actively trade positions there and very few if any the rest of the day (unless I am entering/exiting a swing trade).

Examine your own trading (if you trade actively intraday) and see if you can benefit from opportunity and time-of-day analysis if you are not doing so already. You should be breaking your trades down by time of day anyway to gain an analytical edge.

We always say that markets are different each day and change their character (in terms of volume, opportunity, and participation), but it is important also to realize that certain times of day also change the opportunity as well.

Comments Off on Link: TraderFeed – Volume and Opportunity Intraday

Comments are closed.