Pivots, Patterns, and Intraday Swing Trades: Derivatives Analysis with the E-mini and Russell Futures Contracts, + Website

CHAPTER 16

Transition Time Reversals

In Chapter 1, “A Three-Frame Day,” I introduced the broad concept of a day split into three time periods, or frames. The message told the importance of establishing a kind of cadence to the ebb and flow of the day. Consolidation shifts to trend, volatility shifts back to drift, action is countered by reaction. On most days, this is simply how the market behaves. Certain Persistent Trend Day behavior is the only real exception. Since the market can never become too predictable, this whole concept can be categorized as a generality, but it remains nonetheless an observable phenomenon that the static Transition Time Markers are often the focus of change in price action or trend.

The 12 P.M. Transition Time was only mentioned briefly in Chapter 1 as a member of the Time Marker set. Of this set, these four are worth monitoring for their contribution to price position: the 10:30 A.M. Trend Check, the 11:15 A.M. Transition Time, the Noon Hour Transition Time (also see brief discussion of the Noon Hour High/Low in Chapter 6), and the 2:30 P.M. Transition Time. (All times referenced remain Eastern Standard.)

Outside of the observable behavior of Time Markers in the charts, there is no reason or rhyme why they should have any affect whatsoever on the market at all as potential pivots. The Trader doesn't care about logic. He lets the markets do all the talking. Like most all of the other concepts in this book, with perhaps the exception of the ORB Breakout ...