Today many markets besides Forex trade 24 hours. Almost all traders chart the 24 hour data.
Let’s use the ES for an example. The futures market closes at 4:15 PM, EST, 15 minutes after the NY stock exchange closes. The Globex futures reopens at 4:30PM, EST. But, there is very little volume. Most days, volume drops overnight to 5% or less of the volume during the day. In some cases on an hour by hour basis, the volume overnight is only about 1% of the day volume. Should the overnight trading be charted if the volume is dramatically lower than during the “pit” session hours? A better question might be should you chart data only for the pit session hours and ignore the overnight session data as irrelevant?
The answers from my point of view are Yes and Yes. Chart both the 24 hour data and the “pit” session hours data separately. Each will provide useful information.
Interestingly, momentum cycles usually continue at about the same cycle length and intensity though the night even though the volume and range of the trading drops off significantly. So, you definitely want to consider the 24-hour data if doing momentum cycle analysis. Probably the most important reason to chart the “pit” session only hours data is if you consider pattern such as Elliot wave patterns as part of your analysis. The ID patterns are usually much more evident on the “pit” hours data only than if the overnight data is included which includes all the “noise” of the low volume, low range overnight trading.