Module 2 — Market structure & timing
Why the first hour behaves differently
6 minute read
In plain English
Overnight news, delayed orders and repositioning all arrive at once at the open, so volume and range are usually at their highest.
Why it matters
More movement means more opportunity and more cost. Spreads widen and stops are hit more easily.
Example
A ticker's average 30-minute range at 9:45 can be three times its range at 1:00pm.
Try this
Compare the first 30 minutes of volume with the midday hours on any active name.
Common mistake
Using midday position sizes during the open.
What this does not mean
The open being active does not mean it is the best time for you to trade.
Educational content only. Not financial advice.