Report Guides
How overnight and European sessions predict RTH direction
Markets trade around the clock, and the direction established during Asian and European hours often carries into US RTH — or sets up a reversal. This report measures the statistical correlation between session directions to help you develop a pre-market bias.
If overnight direction shows strong positive correlation with RTH for your instrument, use the overnight move as a directional filter. For example, if ES has a 60% reversal rate on overnight up moves, you would lean bearish for RTH entries on green overnight sessions.
Combine with IB analysis: if overnight was bearish and the IB breaks to the downside, the confluence increases the probability of a trend day down.
| Metric | Description | How to Use |
|---|---|---|
| Session Direction Matrix | Correlation between overnight/London direction and RTH outcome | Develop a pre-market directional bias based on prior session moves |
| Continuation vs Reversal | How often RTH continues or reverses the overnight trend | Filter trade direction based on historical tendencies |
| Gap Impact | How overnight gap size affects RTH direction probability | Adjust bias strength based on gap magnitude |
| Lookback Analysis | Correlation strength across different time periods | Use shorter lookbacks (30-60 days) to capture current regime behavior |