I am doing a talk on Saturday in London (1st June 2019) on how I trade stock indices. Here are some of the items I will discuss.
All 5min bars:
1st bar of the day has a 20% chance of being the HIGH or the LOW of the day
But, if we see a BIG BULL BAR after a GAP down, or a BIG BAR AFTER A GAP UP, then the odds are now 30% that we just saw the high or the low of the day.
By about 30 minutes in, or by bar 8, there is now a 50% chance that the high or the low of the day is formed.
By the close of the 13th bar, around 1 hour into the trading session, the odds are now 70% that we have seen the high or the low of the day.
By bar 18, there is now a 90% chance we have seen the H or L for the day.
AND GUESS WHAT…
By bar 78, there is a 99.99% chance you have seen the high or the low of the day. ☺