Trading Techniques  |  DEC 2006

Trading In The Middle Zone by Anthony Trongone

Stocks & Commodities V. 24:12 (32-36): Trading In The Middle Zone by Anthony Trongone Having trouble trading at the start of the day? This strategy will help you find your trading spot. There are many articles about entering the market at the open; there are many articles about entering the market toward the close. Few articles, however, focus on trading during the middle portion of trading, which I’ll call the “middle zone.” This is unfortunate because this less glamorous time frame (10:35–14:55 Eastern time) represents two-thirds of the overall trading day. Although the opening of the trading session (65 minutes) is an environment replete with excessive price swings, it does provide us with the information necessary to profit in the middle zone (MZ). Analyzing the previous 444 trading days supplies us with a formula for midday success. By incorporating the information from the opening one-sixth of the trading day, this system gives us the flexibility of taking either a long or short position in which 110 of the 158 tradable plays are successful.

by Anthony Trongone, Ph.D., CFP, CTA