Daily Data or All Data, Any preference?

[epiphany]

Hi,
New to the forum and AGET and would like to say thanks in advance (I've read and re-read just about every thread so far).

I'm a converted Trade Station User that trades ES mostly (90% of all trades). In the past my studies (Fib Clusters with CCI triggers)worked best when I used daily data only, in other words no after hours data. My time frames I use are a 60M, 30M, 15M and 5M.

I know that either give good setups as a signal is a signal and a wave is a wave either way but was wondering if anyone had a concern or comment on using afterhours (lack of volatility and liquidity) on intraday trading.

Thanks,

Ric

[MR]

Hi Ric,

This is a very good question. Yes, it can matter.

If I were in an ideal world, free with lots of time to do what is necessary, I would analze both types of data, one for only regular hours and one which included after hour trading. I would analyze them for synergistic relationships, but also try to identify any differences too.

Now when you add to variable data illiquid or thinly traded data bars to a chart it can distort some things such as your wave count, etc, because you are adding the same number of bars into calculations. We may not be comparing the exact same thing. Look for ways to compensate for the added after hours or overnight trading data, which is often thin. This way we are comparing apples with apples, so to speak.

One way to compensate is now look at something like a 90 to 120 minute chart of the same thing to compare its patterns and results with say an hourly regular hours data chart.

In your case, you may be only comparing a daily to daily so it really would not add too much work.

It really can help to do both. A long time ago when they were making that transition in the futures markets, I started playing with tracking both data results. I remember one Swiss Franc trade. I think I was in it Long but was trying to milk it for all I could. There was a target I was shooting for. The overnight data hit it, but the regular data never did. It gapped down and would have turned out to be a big loser if I had not been looking and comparing results using the newer Globex or whatever the new data was called at the time. Ever since, when I really want precision, if it really is important, I try to look at both kinds of data to help reduce surprises and help me better prepare for all kinds of considerations. As far as analysis goes, that is the way I would look at it.

Hope this is helpful. -marc

[TomJoseph]

I personally ignore after hours data especially on time frames
of 15 min or less. Usually the after hours data is generated by very low volume and sporadic trading.

I am not stating that everyone must do so. But for day trading the ES, I ignore it. When the market closes, I am done for the day and not interested till it opens the next day.

The after hours are reserved for my family. Its also good to just get away and start fresh again the next day.

Tom Joseph
eSignal

[epiphany]

Well said Tom, that is perspective beyond just counting waves! Thanks to the both of you for your input.