Important Time Levels For Trading

Summary

This video explains key time levels used for daily trading analysis, including midnight, 8:30 AM, 9:30 AM, 10:00 AM, and 2:00 PM, highlighting their significance across asset classes. The script breaks down how these time frames relate to open, high, low, and close prices, as well as using them to identify support, resistance, and premium or discount levels. The presenter explains techniques like Judas swings, order blocks, and distribution, demonstrating how to combine these strategies with specific time levels to anticipate price movements and refine trading decisions. Real chart examples are used to illustrate the concepts.

Takeaways

• 😀 Midnight open (1:00 AM) serves as an important reference point for identifying daily support and resistance levels, as well as a discount/premium indicator.
• 😀 Key times to watch include: 1:00 AM (Midnight), 8:30 AM (news release), 9:30 AM (NYSE open), 10:00 AM (new 4-hour candle), and 2:00 PM (new 4-hour candle). These are used to identify price action and key levels.
• 😀 The daily open (1:00 AM) and 8:30 AM are used to assess market conditions like support and resistance, with price often reversing at these levels.
• 😀 The 4-hour candles at 10:00 AM and 2:00 PM provide opportunities to track price trends and assess accumulation, manipulation, and distribution.
• 😀 Using ‘open, high, low, close’ (OHLC) during specific times can reveal trends and price reversals, particularly when combined with news and market events.
• 😀 Judas swings or opposing price runs at key times like midnight, 8:30 AM, and 9:30 AM can signal important price moves or reversals.
• 😀 For a bearish trend, expect price action to form a wick (low) followed by higher prices at key times, such as the New York session open.
• 😀 When price moves through premium (above key times like 8:30 AM and midnight) or discount levels, it indicates possible continuation or reversal opportunities.
• 😀 New York open (9:30 AM) often marks the beginning of price distribution, where the price either reverses or continues its trend after a specific formation.
• 😀 10:00 AM and 2:00 PM openings provide critical times for new 4-hour candles, allowing for strategy execution based on whether the market is in a premium or discount range.

Q & A

What are the key time levels mentioned in the video?

The key time levels mentioned are 1:00 (midnight open), 8:30 (news embargo lift), 9:30 (New York Stock Exchange open), 10:00 (new 4-hour candle), and 2:00 p.m. (new 4-hour candle). These time levels are all in Eastern Standard Time (EST).

How does the speaker use the midnight open in their analysis?

The midnight open is used as a support and resistance level or as a premium and discount zone. The speaker considers it an important price level where support or resistance can form, often influencing the price movement.

What is a 'Judas swing' and how is it identified in the video?

A 'Judas swing' is identified when price moves against the anticipated direction before reversing. The speaker looks for these swings around certain time levels like midnight, 8:30, and 9:30, where an opposing run (counter-move) occurs and then the price resumes the expected direction.

How does the speaker utilize the 8:30 time level?

At 8:30, the speaker looks for high-impact news or an opposing price move, which can indicate a 'Judas swing' or a reversal. The 8:30 level is also considered a time for evaluating premium and discount conditions, influencing support and resistance decisions.

What role does the 9:30 time level play in the analysis?

9:30 is the time the New York Stock Exchange opens. The speaker observes the price action around this time, particularly looking for opposing runs or setups that suggest a price reversal or continuation. It also marks a key level for distribution in the market.

How does the speaker incorporate open-high-low-close (OHLC) analysis in their trading strategy?

The speaker focuses on the OHLC of the daily or 4-hour candles to guide their trading decisions. For example, the daily open is analyzed for price action, such as making a high, a low, or closing, to anticipate the direction of price movement for the rest of the day.

What is the significance of the 4-hour candle and the 10:00 a.m. and 2:00 p.m. time levels?

The 4-hour candles, marked at 10:00 a.m. and 2:00 p.m., are important for observing open-high-low-close behavior. The speaker uses these time points to track accumulation, manipulation, and distribution, identifying crucial points for market reversal or continuation.

What does the speaker mean by using 8:30 and midnight as premium or discount levels?

The speaker uses the concept of 'premium' or 'discount' to refer to price levels above or below key reference points, such as 8:30 or midnight. If the price is above these levels, it is considered a premium (overbought), and if it’s below, it’s considered a discount (oversold). These levels help define potential support and resistance areas.

How is the concept of an 'order block' explained in the video?

An 'order block' is a price zone formed after a strong move in one direction. The speaker identifies these blocks based on price action at specific time levels (such as midnight, 8:30, or 9:30) and uses them to predict where the price will likely reverse or continue.

What is the importance of 2:00 p.m. in the speaker’s strategy?

2:00 p.m. marks the formation of a new 4-hour candle. The speaker uses this time to look for retracements or reversals that may occur, particularly in the context of support and resistance formed earlier in the day. It’s a key point for confirming price direction or consolidation.