Globex (Overnight) Pivots
Pit traders use Globex or overnight trading information extensively to determine key market trading levels for the current trading day. Globex trading hours start after the regular markets close and end before the regular markets open. For example, the Russell 2000 EMini futures on Chicago Mercantile Exchange (CME), the regular market hours are from 9:30 am ET to 4:15 pm ET. Globex trading hours for Russell 2000 futures starts at 4:30 pm ET and ends at 9:29 am ET. Similarly, the Dow Emini futures on Chicago Board of Trade (CBOT), has regular trading hours from 9:30 am ET to 5:00 pm ET. The Globex trading hours for Dow Emini futures are between 5:01 pm ET to 9:30 am ET.
Unlike floor pivots, most traders use only Globex High, Globex Low and Globex Pivot values. Globex High, Low and Close levels are used to compute the pivot price level. The Globex pivot value and the high and low levels are used for measuring market strength and weakness. During most trading days, the Globex pivots may be valid until noon as traders still remember the Globex high and low levels. They are very effective in the first hour of market open. Like regular pivot levels, Globex highs and Globex lows are used for resistance and support levels. The first hour test of these levels and reversals from Globex highs and Globex lows are significant in intra-day trading.
H = High of Globex Range L = Low of Globex Range C = Close of Globex Range
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Trading Globex (Overnight) Pivots
Trading Globex Pivots
Globex pivots are for the overnight trading range. Globex pivot levels act as key resistance and support levels. They are mostly effective during the first few hours (until lunch hour) of trading. The example above shows the Russell Emini futures (ER2) from the 30 minute chart (24 hour chart). Globex high, low, Globex midpoint and Globex pivots are plotted on the chart. Arrows are placed on the chart to highlight the breakouts and breakdown from Globex high and low levels during the intra-day trading.
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