In this video guys, i’m going to look at if you’re a day trader of the indices, how you can set up your charts in the morning, so you’re very well prepared for the trading day. Stay tuned h, welcome to you all right! so i’m in c trader now, which is a pepper stone account. Our pepper stone, are sponsors of this video. Those guys are mt4 mt5 and c trade? I’m a big fan of c traders. Some nice features on this i talked about before, but in this video i want to kind of focus on if you’re, an intraday trader and you’re trading, the indices, let’s say you’re trading the us indices.
It could be any but let’s say you’re u?
S industries. So if you’re in europe, uk um, you know that kind of time zone, it’s a nice opportunity or it’s a nice, it’s nice to be able to trade, the u? S markets, because they open at 2 30, uk time and close at uh 9 o’clock uk time. So if you are working perfect for part-time uh type trading, so anyway, i’m going to look at the nasdaq here.
I’ve got a a nasdaq chart at the moment and it’s a five minute chart um now normally to do your analysis. Obviously you’re gonna look at the daily chart?
You’re gonna do all your bits and pieces, but this is kind of focusing more short term stuff. So really, when we’re selecting nasdaq um on c trader with the pepper stone, uh account, we go to the indices section here.
Spread bet, you want a spread, bring account.
Uh nasdaq is nas 100 sb, that’s our kind of nasdaq 100 pepper stones equivalent and what we want to do really is we want to kind of frame the day that we’re looking for so one of the first things that i like to do. Is i like to look at where the overnight so assume, you’ve already marked on key levels? i know if we’re going back and we’re saying what was the key level um from the prior five days, assume you’re already doing that assume you’re kind of looking at your lows: your highs, your resistance levels, your support levels, etc? What i want to do is focus on the levels that perhaps are more important on the very short term.
So the first thing i’d like to do is i like to look at the what i call the overnight high. So i’m going to mark down the overnight high and here um you know i can change it to whatever i want and i like to have a slight differentiator to show um.
You know where the overnight session highest so here on pepper, stone right! The other night for me is, if i could put the cursor, i put the crosshairs up! Sorry, you know we look from the close or you know around midnight. You know you can either you can choose, you can either go from from the actual clothes which, on this scale is 10 o’clock. We’ve got our european time setting, so it’s 3 30 open until 10 o’clock and you can see the increase in volume. This is when the cash session is open, but pepper stone will quote it? 24 5, with with little breaks little tiny uh breaks in between, but almost 24 5. Um. So when do you say the overnight session is for me, the overnight session is going to be what was the high from after the 10 o’clock closer for you, if we’re european time and nine o’clock close if we’re uh british time and what was the low. So it doesn’t matter here because, for example, the overnight high was put in around midday, so i’m going to mark that off i’m almost going to mark off the overnight low, so get my arrow here and i’m going to move it down to around here.
So now i have an idea of what the overnight high and low was, and i’m going to zoom in! So we can see this there’s an overnight high! Is my overnight low fine.
The other thing i’m going to mark on my chart and again i’m going to go to the horizontal line here and i’m going to look and see okay. What was the opening price for uh this market and it was around here, so i’m going to mark that down i’m going to right click on it and i’m going to do actually i’m going to take it from here? I’m gonna uh right click and i’m going to change it to yellow personal preference to you know open for me great? So now i’ve framed a little bit what’s going on, okay, i know right the overnight highly overnight, like why do i mark the overnight high overnight low, because i know there’s a good probability that we touched the overnight high in overnight low during the trend, the kind of regular trading hour session? so if we consider this is the open, why is it the open? well, it’s the cash session open! So when all the nasdaq stocks start trading, it’s when you know we’re not just speculating on where the collection of stocks will open, as is happening with overnight session, it’s where the stocks are actually opening and why we get so much more volatility!
So i’ve marked off an overnight high marked off my overnight low marked off my open, and now i can start to frame the day a little bit and i can start to update as i trade along.
I can start to go right, i’m going to put in a low here and i’m going to leave that as red, and i’m also going to put in the daily high up here and i’m going to change that to green again, personal preference, you kind of get into routine guys of what you like. So now. I can see what’s happened and you might also want to put in what’s the opening uh range high and low, so the opening range could be the first 15 half an hour or hour regardless. So anyway, point is guys. How do we use this to make trading decisions well overnight, high or low? we know that it’s likely to be tagged at some point during a trading day. That means we can position for a tag of that! If, for example, we got an opening drive, i wasn’t trading this disclaimer guys um, but as an example, if we kind of got an opening drive break, the downside here took the short. Our target would be a scalp to the overnight low because we know that’s the high probability of being tagged. Similarly, the day type at the moment is setting out to be um! You know a very weak type day? We put a horizontal line at the open?
We go right that wasn’t what we opened and so far we haven’t really gone back to the open. So again, i’m using that as a reference point, i’m saying the high of the day so far is very close to the open and the current price is nowhere near that now, when we go back on a higher time frames, we might say: hey, maybe we’re due a little bit more of a pop and that’s something to to to analyze. But what in this video, i want to focus really on the things that we need to do in the first hour of the training day. Obviously, whenever you’re over on a high and low set, your open set after you’ve had your first hour, you’re marking your high low now you’re coming up with a bit of a road map and a thesis and you’re saying: okay.
Well, maybe if we double bottom through the low, we might rotate up back to the open or perhaps your other thesis might be hey if we start to push up and sort of pause a little bit around the kind of lunch time session at the open at the high.
Maybe we’re going to push back into um the midpoint of the day. I don’t think we’re going to push into the height.
You start to be a bit more, a bit more of a framework, but as the trading day goes on guys, you can remove the overnight harlow because it can become less valuable because they’ve already tagged this level. Now now the more important level is the daily low. It’s not the overnight low we’ve been there? We’ve done that that trades disappeared. You remove that from the screen, and you just say: well, i’m gonna work with the intraday low, i’m gonna work with the uh intraday high and possibly overnight height, because they forget transition of the market. We could go into range brown condition? Then in the afternoon, maybe you drive. If you get a change in sentiment and you get a drive, then your target might be the overnight high, so you’re always constantly adjusting. We don’t want too much information on? We don’t want this level that level. Sometimes people will put on a resistance level from the overnight session. I don’t mind that i’m not a huge fan of it. You know there’ll be one there and you can see how it’s kind of stuck to it, but to me it’s more important putting on key levels that are happening intraday now, so, let’s just get rid of that. So i might say: okay well, there’s a little level there, so i might be more inclined to put it here. That’s kind of a swing high, a couple of times um, but we’re still early days we’re still kind of just getting into into the train, not knowing very long, but this is how i would start to frame my day and start to come up with a roadmap? If i didn’t had a have a specific plan going into the day, i might be like right! What are the clues in the overnight session or the clues from the opening session? where are my levels? where are they in relation to it? this example is: we’ve got the high, which actually happens to be the open and we’ve been doing lots of work below the overnight low. That’s suggestion of weakness. Will it be sustainable? who knows? that’s the you know, that’s your trade thesis to come up with, but here you start to build a plan and an idea! So with your train, nasdaq, dao s, p, 500 any of those and they’re all available on pepper stone! You just scroll down open indices? Your dow is down here us 30, us 500 is your s, p 500 and your nas 100? is your nasdaq 100.
If we’re going to check out pepstone guys the link in the description below and if you’re a trader a day trader of the us indices? let me know if this helps. Hopefully it has take care bye-bye. You?
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