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5 Things to Know about Stock Market Power Hour

Stock Market Power Hour

Stock Market Power Hour.

The first (Morning time) and last (Before Closing the Trade) hour in a trading day is usually defined as the stock market power hour. On a given trading day, the stock market traders pay massive attention to the first and last few hours; it’s known as a power hour. Now the question is, why do traders pay attention significantly to these specific hours?

The reason is the whole trading day’s volatility becomes amplified on the day’s last hours. Thus, many investors try to get benefit from this amplification by focusing on the power hour.

What is Power Hour in Stock Market?

Power hour in the stock market means the stock market’s intense trading activity in a short period, usually in the first and last period in the day trading. However, the power hour is not restricted to a specific time frame, such as 60 minutes or 120 minutes. Instead, the time length significantly depends and varies according to the market’s trading activity.

For institutional and individual investors, the power hour is a specific time when they execute frequent and large trades on the trading day. As a result, the indices and stocks value become incredibly volatile during this specific power hour period in the stock market.

Institutional investors and individual traders want to exploit the power hour’s benefit fully by doing frequent transactions and executing larger trades. This sudden or specific hour’s recurring transaction significantly affects the stock market’s price.

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When is Power Hour in the Stock Market?

Usually, the power hour time is not explicitly defined. But in 2 different timeframes, the investors experience this. The timeframes are the following:

  • Power Hour at Morning: According to Eastern Time, this power hour takes place just with the opening of the US stock market. Usually, the morning power hour time is 9.30-10.30 AM. Generally, at this time, the stock market investors accumulate the stock related overnight and morning news. Then after analyzing all these trade news, the traders take a final trading decision. Thus the trading activity remains at the peak at this morning hour.
  • Pre-Close Power Hour: The Pre-close power hour, according to the Eastern Time, is between 3.00 to 4.00 PM, just before closing the US stock market. The most recognized and robust power hour period in the stock market is this final hour.

During this final hour, the investors in the stock market finalize their stock’s transactions by closing their positions. And on the pre-close power hour, the trader’s decision significantly affects the market activity. As a result, the stock market goes through a frantic rush and volatility.

However, the above two timeframes are the most recognized power hour to the investors in the stock market. Mondays and Fridays are also recognized power hour time for many professional investors. Many investors consider these two days as power hours in the stock market with the same reasoning. As the entire trading week begins and ends on these days. Thus the investors experience higher trading and volatility activity at these days.


5 Things to Know About Stock Market Power Hour.

1. Usually, the whole week’s most unpredictable power hours the investors experience at Monday and Friday. These power hours are volatile because these are the stock market’s weekend time. And at this time, there is less trade in the market. Generally, Monday’s unexpressed stock market demand ultimately leads to an exciting power hour.

However, compared to Monday, the investors experienced the most volatile power hour on Friday. The reason behind this highest volatility is that investors often end up their trade before the closing time.

2. Friday’s power hour enormously affects the stock market company’s pending news or announcements that they will declare on the weekend. Their pending weekend announcement becomes volatile during this power hour to a great extent. Additionally, the power hour on Friday significantly affects the high-volume options of stocks.

3. The stock’s critical trading time is Friday’s power hour for stock market investors and traders. At this specific power hour time, the traders get the chance to maximize their leverage with the swings in stock price.

On Friday’s power hour, even the price movement of stock can determine the value of large swings. Thus for the trader, this power hour period plays a crucial role, and their considering options can expire at this time.

4. The power hour in the stock market limits the market’s trade in the day’s specific 1 or 2 hours. Limiting the trading time offers a unique benefit for investors. Now they can get enough time to research the market stock price and their movement and do other work in the day.

Getting the chance to do deep research helps the traders to support their stock analysis. The critical point of success in trading stocks is doing the stock markets through analysis. Thus, it’s positive that the investors can devote more time to research due to a specific power hour time.

5. Power hour is not an issue for those investors who want to invest in the stock market for a longer time. However, whether it long term or short-term investment, getting the maximum advantages from power hour volatility is the main motto of the investors.


How to Invest in Power Hour Stocks.

No option is more excellent than power hour for making a maximum quick profit in the stock market. But to get the full benefit, the investors need to know what they have to do during this period.
The stock traders must understand the power hour stock’s definition, how to invest in them, how to find and trade with them. Let’s discuss these points one by one, which will help you know how to invest in power hour stocks.

Definition of Power Hour Stocks.

During the morning and afternoon, the stock market’s highly volatile stocks are known as the power hour stocks. Usually, these stocks become unpredictable during the trading day’s first and last hours.

How to Trade Power Hour Stocks.

The higher volume of power hour stocks generates higher volatility in the stock market. As a result, the investors get great profit-making opportunities. So now the question is how to trade with the power hour stocks? And can investors make a profit if the stock’s price rise or falls?

The answer is yes, and you can generate profit irrespective of the rise or fall in stock market price. But before taking the final trading decision, look for the buzz around the power hour stocks. Take a look at the following ideal profit-making situation from these stocks.

i) Stock Price Rise.

A positive buzz signifies excellent signs, and you can typically trade the power hour stocks. If the stock price rises in the power hour, you will obviously receive the profit by trading or selling the supplies.

ii) Stock Price Falls.

But the reverse can also happen, and sometimes you may experience negative buzz around the stocks. However, the negative buzz signs that the power hour stocks will likely become a bear. In this situation, you can look for other available stock and move to that if you want. Or you could go with the short sell idea.

Short sell is a process of making backward trade. In this method, at first, borrow that company’s stock whose price will drop according to your prediction. Then wait and see how much the stock price drop. Finally, after going down the price at the lowest level, sell this company’s stock. Your account will get the actual funds. Now the fees will automatically subtract from your account. Thus even after falling the power stock’s price, you made a profit without significant investment.

iii) Power Hour Stock’s Common Trading Methods.

The standard and general trading method for investors to deal with the power hour stock is straightforward. The way is buying the stocks during the morning power hour and selling those stocks in the afternoon. The investors can benefit from the power hour volatility by purchasing and selling within this short period.

Another method is buying the power hour stocks in the afternoon and holding those overnight. You can expect that those stock prices will rise on the following day. Thus sell your hold stocks at the next day morning time and make a profit quickly.


Do Stocks Go Up During Power Hour.

Yes! During the stock market’s power hour significantly the stocks go up. The question is how you will know when it will go up. Don’t worry, and the stock market brokerage will provide you with an easy solution.

Most brokerages offer a standard feature: “Stock Price Alerts.” You will get the price ups and downs notification if you turn on this alert. However, you will receive this alert only if the price movement is more than 5%. Using this alert, you will see waves in stocks. Primarily the shock wave occurs during the stock market opening time and a few hours ago before closing.
Thus, in simple words, during the power hour, the stock market’s activity increases much more compared to the average period, and therefore, the stocks go up.



Hopefully, after reading the above discussion, now you know what stock market power hour is. Power hour in the stock market is a broad time frame that usually occurs at the beginning or end of the trading day. And stocks become highly volatile during the power hour, especially at the trading day’s end.

The highly volatile and high-volume stocks ultimately offer higher profit to the traders in a minute, second, or hour. Thus the investors can maximize their profit by taking opportunities from the highly volatile stock market during this specific hour. In simple words, for the stock market investors and traders, power hour is the best time to trade in the market.