Did you know that trends that occur in U.S. stocks can be broken down into a consistent order for a “normal” trading day? When reviewing this information, keep in mind that the times listed are approximate, which means you can’t expect a rollback / reversal every day at the same time. What you will see is that kickbacks are common at these times.
Each of the times listed here is present at Eastern Standard Time, with the opening taking place at 9:30 a.m. and the closing at 4 p.m.
Trends are also based on index movements, which actually average a few stocks, and in some cases there may be slight differences.
Opening time / bell is also when there is a push in a certain direction. The cost may also increase several times, but in most cases one direction will prevail.
If you don’t see too much movement in the first 15 minutes, it may be a slow day overall. Start time is the most volatile time.
The dominant direction in which the price moved is usually the initial test. There will either be a noticeable rollback or a complete reversal of the trend.
10 a.m. to 10:30 p.m.
This is another time when a “bowel check” for a trend comes into play. Then there will be another serious correction of the existing trend. It can be a complete reversal or a rollback. You can look at the context of actual price movements to determine what to do.
From 11:15 to 11:30
The London Stock Market will close at 11:30 a.m. ET. At this time, European traders step out of their positions when a new minimum or maximum is created or tested. Typically, these are the last significant moves before setting the price for dinner.
From 13:30 to 14 hours
This is a time when trends are likely to re-establish themselves. Watch for a breakthrough at this time.
14:00 to 14:45
There is nothing to watch, but be careful. The end of the day is approaching and many people are shuffling to their positions.
15:00 to 15:30
During this time, the trend may change rapidly. In many cases, the period is a “shake-up” when people can start trying to rebuild themselves. In some cases, you can make money, but don’t count on it.
From 15:55 to 16 hours
If you don’t have a specific strategy for trading in the last few minutes of the day, then you should finish three to five minutes before closing. In the US markets, the auction will close, and everything is done in one transaction, which takes place at 16 o’clock.
As you can see, knowing how stock prices usually behave at different times of the day, you will have a competitive advantage over those traders who do not. This knowledge can lead to more profitable trades and success in trading.