Patterns Related to the Premarket
When looking at tick or volume charts of the Globex Emini, the open is not easy to spot because it is just part of the 24-hour trading day and appears indistinguishable from the rest of the chart. In fact, the bar that contains the open of the day session will almost always contain ticks from before that open. There is a tendency for the Globex highs and lows to get tested in the day session, and there are patterns in the Globex that get completed during the first many bars of the day session. The first hour or so usually moves quickly, and the day session alone provides great price action. Since most traders are not capable of trading two charts well, especially in a fast market like after the open, just choose either the Globex or day session 5 minute chart. It is a matter of personal preference. Some successful traders watch the Globex all day, but I prefer to watch the day session. Other traders watch the Globex chart for an hour or so and then switch to the day session chart. Most trades that set up on the Globex chart will have price action reasons for traders who watch only the day session to take the same entry. You should be willing to miss an occasional trade rather than risk losing money while being confused as you quickly try to analyze two charts while you place entry, stop, and profit-target orders.
When the market has a large gap on the day session and moves to close it in the first 30 minutes or so, the moving average ...