In the context of the stock market, the power hour refers to a specific time period when trading activity is heightened, often resulting in increased volatility and significant price movements. This phenomenon is observed at two distinct times:
- Morning Power Hour: The first hour of trading, typically from 9:30 am to 10:30 am Eastern Time, is considered the power hour. During this time, news from the overnight session and global markets can impact portfolio positions, leading to active trading as investors adjust their positions12.
- Afternoon Power Hour: The last hour of trading, usually from 3:00 pm to 4:00 pm Eastern Time, is also a power hour. It is characterized by increased trading activity as sellers look to close their positions for the day, and buyers may take advantage of potential market dislocations34.
Traders and investors often monitor these power hours closely, as they can present opportunities for profitable trades due to the increased liquidity and volatility. The morning power hour is influenced by the opening of the market and the influx of news, while the afternoon power hour is driven by the closing dynamics and the actions of institutional investors12.
11/15/2024 07:55pm
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