Here is a question about how much time to include on a chart.

I normally trade the e-mini SP and Dow during the regular trading hours session. When I look at the signals generated on a 24H chart vs. a RTH chart, I often get conflicting buy and sell signals during the opening sequence. I’d assume 24H is better (data continuity-wise); however, the session’s low volume may produce signals that are not reliable.

Hence, the Question is … What is the best data series (24H or RTH) to use for trading instruments that have a Globex session, when applying the PowerTools Trading System during RTH?

This question bedevils many futures traders. Should they watch a chart with data from Regular Trading Hours (”RTH”) or should they include Globex (virtually 24 hour electronic)?

I think it comes down to volume. The more trades that are conducted, the more confident we can be that there is a deep and liquid market in any symbol and timeframe. Many traders attempt to deal with this problem by switching to tick charts.

Personally, I don’t like tick charts, so I set my stock index futures to start at the same time as bonds, that is, 7:20AM Eastern. Quite often, there is considerable activity at that time of day, particularly if important economic numbers are scheduled for release.

I know I am going to get email as to the comment about tick charts, but with the new “mass quoting” practice, I think time-based charts with some portions of Globex activity excluded may be preferable.