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Intraday Trading Patterns

The document outlines typical intraday trading patterns in the U.S. market, highlighting five key timeframes: Opening Volatility, Mid-Morning Reversal, Lunchtime Lull, Afternoon Pickup, and Power Hour, each characterized by distinct trading behaviors and volume changes. It emphasizes the influence of trader psychology and institutional activity on price movements throughout the trading day. Additionally, it notes the volatility and potential for significant price changes during pre-market and after-hours trading sessions.

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162 views2 pages

Intraday Trading Patterns

The document outlines typical intraday trading patterns in the U.S. market, highlighting five key timeframes: Opening Volatility, Mid-Morning Reversal, Lunchtime Lull, Afternoon Pickup, and Power Hour, each characterized by distinct trading behaviors and volume changes. It emphasizes the influence of trader psychology and institutional activity on price movements throughout the trading day. Additionally, it notes the volatility and potential for significant price changes during pre-market and after-hours trading sessions.

Uploaded by

sean.christensen.md
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Intraday Trading Patterns:

Intraday price patterns tend to follow certain recurring behaviors due to trader psychology,
institutional activity, and scheduled events. Here are the typical patterns you’ll see during a
standard trading day (U.S. market, 9:30 AM – 4:00 PM ET):

1. Opening Volatility (9:30 – 10:30 AM)

 High volume and volatility.


 Often called the “amateur hour” — retail traders pile in, and price whipsaws are common.
 Many traders use this time to catch breakouts or fade overreactions.

2. Mid-Morning Reversal (10:30 – 11:30 AM)

 Early trends often reverse or lose momentum.


 Institutions may step in after assessing market sentiment.
 Good time to watch for trend confirmations or fades of the open.

3. Lunchtime Lull (11:30 AM – 1:30 PM)

 Volume drops as traders take a break.


 Price often chops sideways or consolidates.
 Breakouts tend to fail more during this time unless there’s a catalyst.

4. Afternoon Pickup (1:30 – 3:00 PM)

 Activity and volume slowly return.


 Patterns and breakouts become more reliable.
 Some traders enter positions for the end-of-day move.

5. Power Hour (3:00 – 4:00 PM)

 Volume surges again.


 Big players may adjust positions before the close.
 Known for strong directional moves or sharp reversals.
 Day traders often close positions; swing traders may enter.
Bonus: Pre-market (before 9:30) and After-hours (after 4:00)

 Lower liquidity, but can have big moves on news or earnings.


 Prices are more volatile and spreads wider.

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