Tracking the NQ closing hour
Friday's trading was a classic case of support being defined in the first hour of trading (1648/1650, resistance turned support, see the pre-open note on NQ). On the first chart (NQ 10mn), you see the support set up in the first hour and a retest at 15:00.
On the second, we have the NASDAQ advance/decline line, showing the same test.
Note the bullish divergence as we hit the closing hour (-1182 versus -1400). The long white candle with volume (note the moving average volume overlay) told you to stay in for the trade up to the opening gap close, regardless of overall sentiment. Of course, savvy traders also understood that no one would want to be short futures ahead of potentially adverse news on Saturday.
The big rewards are often at the open and the close, save your scalping/brackets for the lunch hour.
This entry was posted
on Saturday, September 27, 2008 at 9/27/2008 01:31:00 PM.
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