Retail investors normally feel powerless in after-hours and pre-market trading time due to either their inability to trade, or failure to find liquidity in a market with few participants. At the same time we know that some of the most important announcements are made during closed market hours; economic indicators, reports, and important summits occur often when most investors cannot trade. However, there is a cause to examine after-hour and pre-market price actions movements as they can often dictate the direction of price action in intraday at open.
This indicator allows you to examine the return profile of pre-market price action of an asset. In this example we can see Beyond Meat ( BYND ) which popped in after hours trading after it's report.
The indicator consists of three variables which are presented in a oscillating manner in the indicator tray.
In Blue, Pre-market return: When the stock market closes at the end of the trading day we enter after-hour trading. After the after-hour trading session is complete, trading resumes in the pre-market the next day - before the regular open. One can view after-hour trading as part of the pre-market - relative to the open the next. In other words; today's after-hours is tomorrows pre-market. That is how we treat pre-market in this indicator.
Pre-market is the delta between Yesterday's Close and Today's Open, and is plotted in blue columns.
Intra-day is the delta between Today's Open and Today's Close, and is plotted in orange columns.
Total Return we consider the effective 24-hour return of the asset; therefore it is the delta from Yesterday*s close to Today's close.
While normally most people cannot trade in pre-market, or choose not to because of market limitations, we at Morpher offer the opportunity to trade any asset 24/7: pre-market and after-hours, and everything in between. Check out our profile for more !