Using Pre-Session Data to Confirm Levels

 

The following text and image were shared recently through both the YTC facebook and twitter pages.

  • My first action on Monday mornings upon opening my charting platform…

 

My first action on Monday mornings upon opening my charting platform...

Actually, it's one of the first things I do every day.

This is the key part we're discussing today:

Using pre-session data to confirm levels

Let's stick with the same timeframe but move forward to the market open at 09:30am.

Using pre-session data to confirm levels

Sometimes analysis of pre-session data offers nothing at all to confirm the relevance of previous session levels.

Sometimes it will allow us to invalidate these levels, when we see price slice through them with absolutely no reaction at all.

And sometimes, like in this case, it helps to validate a level as being still "potentially" significant.

Friday's low will be on my mind as I commence trading today.

Let's see how the opening sequences played out on the trading timeframe.

Using pre-session data to confirm levels

Using pre-session data to confirm levels

(If you're not sure what I'm looking for, see here to find out how I trade!)

Using pre-session data to confirm levels

Using pre-session data to confirm levels

Sometimes analysis of pre-session data offers nothing at all to confirm the relevance of previous session levels.

Sometimes it will allow us to invalidate these levels, when we see price slice through them with absolutely no reaction at all.

And sometimes, like in this case, it helps to validate a level as being still "potentially" significant.

If you prefer to trade with RTH data (pit session data) in order to take advantage of opening gaps, that is absolutely fine.

But at least take a quick look at the ETH data (overnight). See where it has traded with respect to the prior day. Where did it find movement quite easy. And where did it find did it find support or resistance.

This might just provide important information that can help once the opening bell has rung and trading has commenced.

Happy trading,

Lance Beggs

 


 

Written by

YourTradingCoach - Admin

2 Comments to “Using Pre-Session Data to Confirm Levels”

  1. Henrotte Geoffrey says:

    Really nice post ๐Ÿ˜€๐Ÿ˜€
    I prefer the 15 min but it’s just a personal choice.
    What about the ETH levels?
    Do you mark them?
    I only mark the high and low.
    What are you thought on that?
    Thank you

    • Lance Beggs says:

      Thanks. Glad you enjoyed it.

      I used to only look at the ETH data and take levels from that.

      I’ve simplified the process now to marking the RTH daily highs and lows. And then looking to the ETH data and ONLY adding these levels if there is something that really stands out as important. More often than not I just end up with the RTH pit session high/low.

      Cheers,
      Lance

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