The importance of pre-market hours in Futures
How the pre-market hours can set you up for the on-hours and the power of Wedge-like patterns after paying attention to 2 different Futures contracts, namely the UK's UK100 and the US Russell 2000.
As highlighted on the charts we can clearly see how when we are closing in at the proper trading hours of the indices themselves [(UK100 @ 10:00 - 18:30 GMT +3) & (US Russell 2000 @ 16:30 - 23:00 GMT +3)] the subjects rallied by 33 points and 20 points respectively. In fact on the US Russell 2000 the bottom of the Wedge acted as the lowest point of the entire session. With the NYSE open the asset gave a 2x bottom and just took off from there.
Now you will not always be set up like this but the point I am trying to make is that it's important to pay attention to the pre-market hours as it can give you clues as to what will be happening during the proper trading hours of the index. I personally wouldn't trade the off-hours but I will definitely pay attention to the clues they will give me
Regarding the Wedge-like patterns, they are good indicators of a reversal being set up. You want to be looking for a descending Wedge at the end of a downtrend as a reversal signal, and an ascending Wedge at the end of an uptrend. For the Elliot Wavers out there we are talking about Contracting Ending Diagonals. The pattern does not need to have 5 sub-waves in order to work, it can very well work with 3 sub-waves as well.