Zen Trading Tech

Concept

• How does WHERE we open impact the first few trades of the day?

Video

• I did a video about part of this process here:

1. Concept
2. Video
3. Research
4. Open in YD Range
5. Open in YD Range – YD Channel
6. Open outside YD Range – Breakout
7. Open outside YD Range – Sucked back in
8. The Daily Chart
9. Conclusions

Research

• There are a few common groupings of opens I found interesting and possible ideas for building trading strategies around them which I’ll share here.

Open in YD Range

• Here YD was a TR and we kept the vibe going all day. A small day followed by another small day!

• Sold off from the top third and brokeout below.

• Open in the middle, buyers below and sellers above

• Open low found buyers, and selloff in top third

• Open bottom third and trend up

https://www.tradingview.com/x/15IExX57/

Open in YD Range – YD Channel

• Strong bull channel yesterday, broke out, tested midpoint, then made a more gentle channel

• Strong bear channel

• Bull channel, first a bear breakout then a bull breakout, then sideways

• Bear channel, bear BO then bull BO

Open outside YD Range – Breakout

• Bull day and then next day bull trend from open

• 2 attempt to reverse, more buyers

• 2 Attempts then sideways to up

• Sometimes it comes back later

Open outside YD Range – Sucked back in

• Opened above but fell back in. Buyers in lower third.

The Daily Chart

• One of the biggest factors I found was the Daily chart (24h RTH)
• Some charts below

• Bull bar, in bull spike, buyers in lower half

• Big bear bar, sellers in top half – top third

• Bull spike, buyers chased it up from above 50% – urgent bulls!

• Sell signal bar in bear trend, sellers above

Conclusions

• This is an ongoing research to improve trading on the open
• I hope you enjoyed it and maybe it inspired you to take a look at ways to improve your trading on the open.