A common question I receive while we are planning trades in the Extended Learning Track is whether or not I consider a supply or demand zone to be broken if prices happen to break it during a pre- or post-market trading session.

For those of you who may not be aware, there is trading that occurs before the 9:30am PST official market open and also well after the 4:00pm close. I want to caution you, this is not an invitation for you to trade during this time. The markets do not trade as they normally do outside of the regular trading hours (RTH). During the RTH, the market makers are required to post bids and offers to facilitate trading, hence the name market maker. But in the after-hours sessions, they are not required to do so.

Additionally, the spreads are quite wide outside the RTH of the market. This is… Continue Reading