Globex Intraday Trading Levels


Globex Intraday Trading Levels

 

What is the Globex session?  A brief history lesson.

The Chicago Mercantile Exchange (CME) runs an electronic global trading exchange, titled ‘Globex’.

Many products used to have a trading floor where physical traders exchanged contracts in the pit.

As a trader, you would be able to pull up the pit or floor contract, or the one traded electronically.

Since the trading floor (pits) closed in the afternoon, most trading moved to electronic networks in the evening.

Today, the Globex (electronic) session is the exclusive trading network for futures.

But the term ‘Globex session’ sticks to this day, and refers to the evening session.

Today traders call the night session, or Globex session the less active hours between 6PM and 9:29:59 AM EST.

Next I will tell you what levels are important for intraday trading.

 

Globex Intraday Trading Levels to Use

The overnight trading session is very low volume, but this does not mean it is not important.

European traders are busy trading their opinion of the US stock market as most US traders are asleep.

Overnight levels that are formed in the Globex session are vital for intraday trading next day.

Here are the most important levels to put on your charts every morning:

  1. Globex session high – also called overnight high
  2. Globex session low – alternatively called overnight low
  3. Previous US day’s closing price

Click here to learn all of our favorite futures trading levels.

These overnight levels will be very important for intraday trading.

Next I will show you how to get these levels, and what mine look like on my platform.

 

Globex Intraday Trading Levels – Crude Oil Example (CL)

In the image below you can see an example of the Globex levels.

The green horizontal line with the caption on the right that reads ‘ON/L’ is the overnight low level.

I chose to color code it green, because the low for Globex hours is a support level.

Read more about support and resistance strategies here.

Now let me walk you through the chart.

In circle number 1 below, you can see that our overnight level was established around 8:57AM EST.  Only minutes before the pit session open for oil, a market which still has a trading floor in New York.

At 9AM, crude oil opens at $50.73 a barrel (yellow horizontal line).

Here you can see that even though the market broke the open price, it held the overnight (Globex) low very well all day.

At circle number 2, the price action broke below the overnight low and hit stop losses that accumulated during the day.

Notice that at 1:30PM EST, the rally in price stalled at the same overnight level.  This time the support has reversed its role and is acting as resistance.

Crude oil prices continued to drop.

 

Globex Levels - Oil Example (CL)

Globex Levels – Oil Example (CL)

If you had not been following the Globex levels for your intraday trading, you would have not konwn what caused the long term support.

 

Globex Levels – How to Apply them Like a Professional Trader

Traders can use these levels like any other support and resistance.

However, it is important to remember that this level is formed by price action and is a lot more powerful than any indicator.

Globel levels represent levels of extreme that have caused emotions for those stuck at the highs and/or lows.

Map these Globex levels every morning before your intraday trading session begins.  You will see how consistently momentum accelerates once these levels are breached.

What causes this?

Stop losses getting flushed out from traders that have taken positions near the lows or highs.

Are you getting stopped out every time?  Here is a simple trick to prevent you from getting stopped out.

Now you too can trade like a professional by applying these powerful levels to your intraday trading.

 

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The information contained in this post is solely for educational purposes, and does not constitute investment advice. The risk of trading in securities markets can be substantial. You should carefully consider if engaging in such activity is suitable to your own financial situation. TRADEPRO Academy is not responsible for any liabilities arising as a result of your market involvement or individual trade activities.