c02 JWBT016-Busby September 30, 2008 13:33 Printer: TBD
28 A FOUNDATION FOR SUCCESS
FIGURE 2.1 Tracking global trading from east to west. On weekdays, the Globex
electronic trading system opens at 3:30PMand on Sundays at 5:00PM. Asia dominates
the first time segment. Trading across Europe begins as Asia is winding down. Finally,
the sun rises in the United States and our exchanges open in New York and Chicago.bull market may get stronger as more players go on a buying binge. Or,
if a large number of traders decide that things are moving in the wrong
direction, a reversal might be in the works. Figure 2.1 is a 30-minute chart
of the E-mini futures. Asia dominates trading, as depicted on the left side
of the chart. As time passes, trading moves across Europe, and finally the
United States dominates the scene.
The important thing to remember is that somewhere around the world
financial markets are actively being traded virtually 24 hours a day. The
areas of the globe where the sun is shining the brightest tend to be the
most active centers. Trading progresses from the East to the West and back
again.
Figure 2.2 also depicts this important fact about the use of time. Start at
the bottom at the point marked “Market Open.” Move clockwise and west-
ward to the Far East. Asian traders exert influence throughout the evening
hours. As time progresses, Europe opens; then New York becomes active.
Learning and using this concept—that there are four distinct trading setups
within a 24-hour time span—will add a level of stability and consistency to
your trading.
A great web site for checking market hours is http://www.marketclock.com.
So that is the first way that time is used in my trading strategies. By un-
derstanding that trading activity follows the sun, I am able to gain knowl-
edge and insight from traders in Asia and Europe. There are days when
that information is not very important. There is no identifiable or profound
sentiment expressed. Then there are other days when I am able see a trend