Pivotal Time Frames You Need To Know
Nicholas Santiago | Aug 29, 2013 10:27AM ET
Most stocks and indexes often reverse or pivot from their initial move around one of the pivotal time frames, the first of which is 10:00 am -- or the first half hour of trading. While this time frame is pivotal, it's not 100% and does not occurr every trading day. Thus it's crucial to put it together with another resistance level or, possibly, a pattern, to increase the odds of a short-term trend change.
By considering the time frame along with multiple factors such as price and pattern, you'll be able to determine which time frame is most relevant.
Major And Minor Times Of Day
The next pivotal intra-day time frames --though minor -- are 10:30 and 11:00 am ET. The times during and after lunch are also minor. The major afternoon time frames are 2:30 pm, 3:00 pm and 3:30 pm.
Understanding these periods of the trading day and what it is that makes them major or minor at a given moment is key to profitable trading. We utilize these levels in our live trading room, the Intra Day Stock Chat everyday.
By experimenting with theses times of day, you'll learn to identify the specific times of day that are good turning points to trade from.
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Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
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