Labeling trading sessions
Following in Fisher’s footsteps, let’s try to classify trading sessions. One of the most effective classifications, in my opinion, is based on comparing the highs and lows of the current trading session with those of the previous session. Figure 11.2 shows four types of trading sessions:
Figure 11.2 – Iris labels versus trading session labels
In Figure 11.2, you can see a possible trading session classification based on the relationship between the highs and lows of two consecutive trading sessions. As you can see, Fisher identified three species to recognize, whereas we have identified four trading session classes. The logic behind them is the same – labeling.
Table 11.1 provides more details on the trading session classification:
|
Trading Session |
What It Means |
EasyLanguage Formula |
