What is the 11am rule? (2024)

Does this old trading rule still stand true today?

So sometimes you hear these sayings andrulesthat traders used to come up with before charts, ChatGPT, and Instagram gurus…

And theseruleswere based on simple observations aboutthemarket’s rhythm and structure.

I’m going to explore a few more of these overthenext few weeks, but today I want to focus onthe11amrule.

What isthe11amrulein trading?

The11amrulesuggests that if a market makes a new intraday high fortheday between11:15amand11:30amEST, then it’s said to be very likely thatthemarket will endtheday near its high.

Theidea being that if there hasn’t been a push lower by11am, then demand is persistent, sellers are scarce, and we could be in for a trend day higher.

Here’s a chart example:

A new high at11.25 EST ontheS&P 500, closedtheday at highs.

See Also
Trade sizing

What is the 11am rule? (1)

Here’s another.

So, this did actually close at highs, but your trade timing would have had to be on point to make this one work…

What is the 11am rule? (2)

You gettheidea…

Now I haven’t backtested this, but my gut says this makes sense.

I found some data to suggest thisruleapplies 75% ofthetime, but I’ve not done my own digging yet.

When I do I’ll share my findings.

I wonder if it works in other markets too…

Meanwhile, it’s something to think about, and if true, it’s another one of these little edges you could layer into your trading strategy for potentially improved returns.

What is the 11am rule? (2024)
Top Articles
Latest Posts
Article information

Author: Roderick King

Last Updated:

Views: 5647

Rating: 4 / 5 (51 voted)

Reviews: 82% of readers found this page helpful

Author information

Name: Roderick King

Birthday: 1997-10-09

Address: 3782 Madge Knoll, East Dudley, MA 63913

Phone: +2521695290067

Job: Customer Sales Coordinator

Hobby: Gunsmithing, Embroidery, Parkour, Kitesurfing, Rock climbing, Sand art, Beekeeping

Introduction: My name is Roderick King, I am a cute, splendid, excited, perfect, gentle, funny, vivacious person who loves writing and wants to share my knowledge and understanding with you.