Why You Should Pay Attention To The Time Of Day
Sometimes, listening to the market means
knowing when not to trade. If a high-probability trade develops during what
is known as the “doldrums,” that time of day when high-probability
trades have less of a chance of following through, it’s OK to take the initial
trade. Just remember, if the setup doesn’t “put you in the money”
fairly quickly, it might be time to take a lunch break, just like the rest of
Wall Street.
12:12:57
Intraday
Setup Alert
The Dow Jones ETF (DIA)
never triggered out of the FlipTop, but session highs were thwarted at the
top of our resistance zone mentioned in the 9:53 post. Current action has the
index proxy setting up as a potential short continuation trade as it has
established a Slim
Jim near day lows. Triggers out of this pattern are below 84.48, with the
DIAs currently trading higher by 1.66 at 84.55.
I considered the technical setup above worthy of
entry, but considering the lunchtime hour, and not wanting to be the main
course, I’m also very quick to realize when the trade isn’t cooperating.
Unfortunately for daytraders, all market hours are not created equal, in terms
of participation. In this case, the downward momentum that might exist at other
times during the day was being traded in for possibly some hot
pastrami sandwiches. Upon exiting with lunch money still to spare, this was very
quickly looking to be the better lunchtime trade.