BEST TIMES
Time Patterns in Futures
There are some time patterns in the futures market, so it makes sense to determine when those times are and be ready to take advantage of them.
Yes, there are some patterns in the futures market. There are also some times that are more active than others. Of course, while the stock market is open it is usually more busy than after hours, but there are times when there is more volume and times with less volume. The same is true for the after hours times. I have some charts for you to see at the bottom of this page. Of course things change, but as they say, the more things change, the more they stay the same. In other words, there are patterns that repeat themselves, or that people are repeating.
Below are times that I am watching more than other times, or . . .
THE BEST TIMES TO TRADE
1. The New York Market Open
2. Futures Market Open
3. One minute before the N.Y. Market close and then right after market close.
4. Four minutes after N.Y. Market close
SPECIFICS:
The New York Market Open – 6:30 AM to 8:30 AM Pacific, Monday – Friday
So, for an experienced trader, the best time is usually the first two hours of the stock market open, which is 6:30 am to 8:30 am Pacific Time (9:30 – 11:30 Eastern). This time usually has high volume and volatility, which is good for an experienced trader, especially if the moves are large. The trend or reversal is where most experienced day traders of futures are going to make their money.
Now, for the newer traders, it better to avoid the first 15 to 30 minutes, if you are using real money. Sure there are days when you will wish you were in because it is going up or down at a nice steady smooth rate and you could be making some great money. But most days the market changes very quickly during the first minutes of the stock market open and it can even be difficult to make money using a demo account, where you don’t feel the extra pressure of dealing with the very real possibility of money being taken out of your trading account faster than you can say, “what happened?” But once you get good, that can be money added to your account just as fast. But it will take time in the market practicing to get good. So, the open is good, but what other times are good?
The Futures Market Open – 3 PM Pacific Time, Sunday – Thursday
When the fututures market opens in the afternoon, after having been closed for one hour, there is almost always significantly higher volume than average. Usually the market will move up or down at least two or three points in the first 30 seconds. Then, after the move in the one direction, it will often slow down and slowly start going back the other direction, sometimes halfway back, occasionally all the way back to where it started. Then it will often turn and go back in the original direction and often continue that trend for ten to thirty minutes. This trend may keep going for an hour, you never know of course. But the pattern that I have discussed is very helpful to know about.
The New York Market Close – 1 PM Pacific, Monday – Friday
There is often a move up in the last few minutes before the close, but most likely in the last minute. Then, there is often a drop at around close or one or two minutes after the close. With the volatility, it makes for some good opportunities to catch a move.
Four Minutes After The New York Market Close
I have noticed a probability of the market to go up about six ticks from about 1:04 pm Pacific Time (4:04 Eastern) for about two or three minutes, then often go back down at about 1:07 pm or 1:08 pm. Then it will often go back up 6 to 8 ticks at about 1:09 pm for two or three minutes. Since these are common patterns, you can watch at these times to see if it looks like the market is going to repeat this pattern. If it looks like it will, it may be a good enough probability for you to consider this trade. In recent months it has often gone up 2-5 points beginning around 1:09 PM Pacific.
Suggestions Not Recommendations
Remember that the ideas that I present are given to help you and are just suggestions, not reccomendations to buy or sell any stock or futures instrument, index or security. Of course, you should only trade with money that you can afford to lose. And that is what the larger percentage of traders do, they lose. And who do they lose it to, you might ask? They lose it those who are making money from the market and to the brokers that are charging a commission to trade. Those traders who are making money are mostly taking trades that they know have a high likelihood of winning, not just a trade because there is a trade available to take. And they know the probability because of time spent practicing trading. Most people can get good at trading if they put in the time learning and practicing.
Chart Theme – Light or Dark?
Notice that some of the example charts below have a “Light Theme” (a light background), while other example charts have a “Dark Theme.” The first below is a dark theme. I started using the dark theme that TradingView offers and I like it better. The dark theme charts also show the stochastics and RSI indicators, which I began using. These indicators help a lot. The light theme charts are good examples of the price movement, but not for the indicators. Don’t copy these indicators. The good indicators are in the dark theme charts below.
CHART EXAMPLES
The New York Open
The New York Stock Market opens at 6:30 AM Pacific Time. I recommend waiting until a direction has clearly set up and it is best to wait for a serious reversal. When a reversal is in progress, it is important to wait until the reversal has completed before getting in for the reversal move. It may take a half hour or an hour or two as it continues with pull backs, but don’t get in until the gold line crosses on the one minute time frame with a good angle of cross. That way you won’t find out that it went back the same way that it was going and took your money with it. If the angle isn’t sharp, stay out until there is a pull-back and the movement continues again well above the gold line cross.
The Futures Market Open
Notice the up, down, up pattern which is common to the afternoon open. This chart below is in the one minute chart, meaning that each candle is one minute of time.
This chart below is in five minute candles, meaning that each candle represents five minutes. Notice the blue 5m at the left top of the chart. So, this big move down is an exception to the usual pop that has been occuring for the last many weeks. After this unusual chart, at least for the last few months, I will show some more charts with the usual pop up.
What you are seeing below is a nice pop to the upside, then a reversal back down, which is very common as I said above. Then there is another reversal back up. Then, if you look at the next chart, which is below this one, which is the same chart, just a little while later, you see it is continuing with these reversals. Notice that this chart is in the 1 minute per candle option.
And now, the same day (below), just a little while later. Two more reversals.
Another common chart below. Same pattern, different day.
What is this below? Yes, the same pattern again.
Another day, and yes, this (below) is pretty much the same thing, just a little less of a drop after the pop up. But notice that this chart is on the three minute time frame. This means that each candle is three minutes instead of most of my charts, which are usually one minute per candle.
But, do take a look at the next chart. It shows how there are always going to be changes in the market. Pretty much nothing happening at this open. The volume is unusually low. There are patterns, like the usual pop, but then sometimes things are very different. For example, sometimes the afternoon open will be going down fast instead of up.
So, that is the “Futures Open Pop” pattern. Any time you find a recurring pattern, so that you have a good idea what is going to happen, there is money that can be had. But the best trading is usually in catching a good gold line crossover. Not just any crossover, but a good one.