[UrmaBlume]

On well over half of all trading days the price that offers traders the best opportunity happens during the night session. The reason for this is that professional traders in Europe and Asia most often set the tone for the US trading day.

Below is a chart showing an overlay of the 24 hour session and the day session in ES. The 24hr session is in Red and the Range of the Day Session is Shown in Blue.

It cannot escape notice that in the majority of the day bars below there is red at one end of the bar and blue at the other which means that if an entry had been made at the red extreme it offered a better potential than an entry made at the blue extreme.

Information = Equity

The Price that offers the greatest potential most often occurs outside the range of the day session

This chart shows the day/nite sessions overlay and the longer term Net New Trade. The second chart down shows the divergence that signaled the top of the whole session which occurred an hour before the open of the day session.

Please Click to Enlarge Image

The Best price of the day was the high shown below which was indicated by the strong divergence between price and order flow/V94Window.

Please Click to Enlarge Image

[WHY?]

Urma you have really complicated things! Now we have a new kind of chart with two opens and one close!

[UrmaBlume]

Originally Posted by WHY? »

Urma you have really complicated things! Now we have a new kind of chart with two opens and one close!

That's because the 24hr session and the day session both close at 1315 PST.

[gosu]

The 24-hour trading range, which includes the RTH, is often greater than the RTH range itself? You don't say....

[UrmaBlume]

Originally Posted by gosu »

The 24-hour trading range, which includes the RTH, is often greater than the RTH range itself? You don't say....

More important than the fact that the range is greater is the fact that on most days the tone of the Asian and European traders set, that is lead, the tone for the rest of the day session here.

[gosu]

Originally Posted by UrmaBlume »

More important than the fact that the range is greater is the fact that on most days the tone of the Asian and European traders set, that is lead, the tone for the rest of the day session here.

That is not a viewpoint we have in common. Sure, events in Asia and Europe can influence trading here; e.g., tsunami, Greece, etc. But to say that traders in Asia and Europe set the tone for the US markets is a stretch. Especially Asia, which is a follower mostly.

[UrmaBlume]

Originally Posted by gosu »

That is not a viewpoint we have in common. Sure, events in Asia and Europe can influence trading here; e.g., tsunami, Greece, etc. But to say that traders in Asia and Europe set the tone for the US markets is a stretch. Especially Asia, which is a follower mostly.

Maybe its better said that the trading that occurs before the open of the day session often sets the tone for the day session that follows and that probably most of that trade is done by professional traders, many or most of whom are outside the US.

How one can tell that it is that trade that sets the tone is that on most days the day session extends the range ONLY in the direction of the tone of the night session.

[gosu]

Originally Posted by UrmaBlume »

Maybe its better said that the trading that occurs before the open of the day session often sets the tone for the day session that follows and that probably most of that trade is done by professional traders, many or most of whom are outside the US.

Do "amateur" traders, as opposed to your "professional" traders, have any impact on the direction of the market? I think we all know the answer to that question. How much do your "professional traders" impact the market? I guess that depends on who you are counting in your group of "professional traders." Who are the real movers of the market? If you can answer this question you can see that they require something that the people who operate during off hours do not.

Originally Posted by UrmaBlume »

How one can tell that it is that trade that sets the tone is that on most days the day session extends the range ONLY in the direction of the tone of the night session.

This is a remarkable statement. You must have done some research to back it up. Care to share it with the rest of us who monitor the all-sessions and do not see such a correlation? I am sure this whole community would be greatly appreciative.