Say goodbye to gap openings and opening bell sounds

The NYSE’s move (U.S. stocks 7x24) not only permanently changes candlestick patterns but also transforms traditionally dormant stocks into active assets that can be called upon anytime in the DeFi world.

Perspective One: The Permanent Change in Candlestick Patterns — Gaps Will Become History

Core Logic: One of the most important schools of thought in current technical analysis (TA) is Gap Trading.

Positive news at Friday’s close leads to a gap-up at Monday’s open. But if 24/7 trading truly becomes widespread, the concept of opening and closing hours in U.S. stocks will disappear, and gaps on candlestick charts will no longer exist.

1⃣ Volatility is Smoothed Out: Emotions that would normally be released within the first 5 minutes of Monday’s open are now stretched over 48 hours. Opportunities for one-sided violence decrease, and downward declines and slow rises will become the norm.

2⃣ A Quant Trader’s Paradise: Humans need sleep, but algorithms do not. Earnings reports released at 3 a.m. on Saturday are already processed by quant robots by the time you wake up. The advantage of information asymmetry will be completely consumed by around-the-clock machines.

Perspective Two: The Staking Revolution — Multi-layered Asset Wrapping

Core Logic: This is the most exciting point for DeFi players. Currently, stocks are dead assets during market closed hours, unable to move. But if stocks are tokenized, in theory, they can seamlessly integrate into lending protocols.

Today’s stocks, after Friday’s close, are just a string of dead numbers locked in brokerage accounts, immovable. But if stocks are tokenized on the blockchain, the possibilities are vast.

Assets are also currencies; everything can be collateralized. This is the ultimate fusion of TradFi and DeFi. Although initially likely to be on private chains, once this door opens, the composability of assets will unleash hundreds of trillions in liquidity.