Trading Patterns on the Open Flashcards
Gap Down and Bull Trend from the Open
Gap Down and Bull Trend from the Open
Trends from the open occur what percentage of trading days?
20% of Trading Days
Gap Down and Bear Trend from the Open (1st Bar)
Traders will begin to Sell The Close, bear Micro Channel
1st 2 Bars are Bear Bars, 2nd bar is closing Near its Low (Both have Good Size Bodies)
*Sell the close of the 2nd Bar or Below 2nd Bar
As long as Strong Bear Trend, Sell Below Bear Bars CLOSING Near their Lows
Gap Down and Bear Trend from the Open (1st Bar)
Traders will begin to Sell The Close, bear Micro Channel
1st 2 Bars are Bear Bars, 2nd bar is closing Near its Low (Both have Good Size Bodies)
*Sell the close of the 2nd Bar or Below 2nd Bar
As long as Strong Bear Trend, Sell Below Bear Bars CLOSING Near their Lows
What Percentage of Opens have Reversals?
80% of Opens have Reversals; there is a 50% chance and open will Reverse (it typically takes place at S/R)
BO on Open - 50% chance of a Reversal no matter how strong
- Market looks for direction early in the day. Tries one way, but even strong BO fails 50% of the time
- Test of S/R can be very strong, still will reverse 50% of the time
BO on Open - 50% chance of a Reversal no matter how strong
- Market looks for direction early in the day. Tries one way, but even strong BO fails 50% of the time
- Test of S/R can be very strong, still will reverse 50% of the time
Opening Reversal: Early Reversal @ S/R
- 80% of Days test S/R in 1st 90Minutes the Reversal often becomes the High or Low of the Day
- Reversal is usually a DT, DB, Wedge Top or Wedge Bottoms
- Therefore on the Open Look for … DTs, DBs, Wedge Tops, Wedge Bottoms; sometimes the 1st Reversal will Fail and I will get an opposite Reversal
Opening Reversal: Early Reversal @ S/R
- 80% of Days test S/R in 1st 90Minutes the Reversal often becomes the High or Low of the Day
- Reversal is usually a DT, DB, Wedge Top or Wedge Bottoms
- Therefore on the Open Look for … DTs, DBs, Wedge Tops, Wedge Bottoms; sometimes the 1st Reversal will Fail and I will get an opposite Reversal
How to enter, place stop, and exit - Traders should enter most trades using STOP ORDERS
- To increase the probability of a profit, wait for a strong signal bar
- When selling, wait to sell below a bear bar closing near its low
How to enter, place stop, and exit - Traders should enter most trades using STOP ORDERS
- To increase the probability of a profit, wait for a strong signal bar
- When selling, wait to sell below a bear bar closing near its low
Wait for Strong Signal Bar, Use appropriate Protective Stop
Wait for Strong Signal Bar, Use appropriate Protective Stop
When Starting Out I should be taking mostly Swing Trades and this equates to 2-3 Trades per day.
And when I gain more experience I can take 3-10 Trades a day with Scalps & Swings
When Starting Out I should be taking mostly Swing Trades and this equates to 2-3 Trades per day.
And when I gain more experience I can take 3-10 Trades a day with Scalps & Swings
Pattern 1 to Trade on the Open - Buy Climax: Any Strong Open Reverses 50% of the Time (2nd Leg Bull Trap and Micro DT)
Pattern 1 to Trade on the Open - Buy Climax: Any Strong Open Reverses 50% of the Time (2nd Leg Bull Trap and Micro DT)
Pattern 1 to Trade on the Open - Buy Climax: Failed BO above Yesterdays High
*Always pay attention to Yesterdays High & Low as the Market often Tests it and Reverses
*Note after a Trend/Micro Channel etc has occur then followed by a HUGE CLIMATIC Trend Bar it usually leads to profit taking so entering below that bar for a trade is not always ideal(see Bear Exhaustion Bar on chart below)
Pattern 1 to Trade on the Open - Buy Climax: Failed BO above Yesterdays High
*Always pay attention to Yesterdays High & Low as the Market often Tests it and Reverses
*Note after a Trend/Micro Channel etc has occur then followed by a HUGE CLIMATIC Trend Bar it usually leads to profit taking so entering below that bar for a trade is not always ideal(see Bear Exhaustion Bar on chart below)
Pattern 1 to Trade on the Open - Gap Down: Bull Trend From The Open
*Remember no matter how strong an opening trend is, it will reverse 50% of the time and than a 50% chance it will resume!
Pattern 1 to Trade on the Open - Gap Down: Bull Trend From The Open
*Remember no matter how strong an opening trend is, it will reverse 50% of the time and than a 50% chance it will resume!
Keep in mind on the OPEN everything that looks good only has a 50% chance of success
Keep in mind on the OPEN everything that looks good only has a 50% chance of success
Sell Climax: Reversal Day after ii (Consecutive Inside Bars) [Reasonable to Buy above the Bear Bar in this ii pattern because it is a triangle BO pattern on a smaller TF]
*Exit on this chart equates to TBTL & another entry presented itself “HL MTR”
Sell Climax: Reversal Day after ii (Consecutive Inside Bars) [Reasonable to Buy above the Bear Bar in this ii pattern because it is a triangle BO pattern on a smaller TF]
*Exit on this chart equates to TBTL & another entry presented itself “HL MTR”
Sell Climax: Reversal Up after Micro DB
*With this Sell Climax on the Open I have to be thinking there is a 50% chance of a Reversal Up
*After the Climatic Bar there was a Doji Follow-Through which failed to Breach the low & than a Bull Bar followed by another Bear Bar that Failed to Break Yesterdays low resulting in a Micro DB leading to the Reversal Up
Sell Climax: Reversal Up after Micro DB
*With this Sell Climax on the Open I have to be thinking there is a 50% chance of a Reversal Up
*After the Climatic Bar there was a Doji Follow-Through which failed to Breach the low & than a Bull Bar followed by another Bear Bar that Failed to Break Yesterdays low resulting in a Micro DB leading to the Reversal Up
Sell Climax: Reversal Up after Micro DB
*Parabolic Bull Wedge Climax warrants a Great Exit for Profits after the Bear Bar Closes near its low
Sell Climax: Reversal Up after Micro DB
*Parabolic Bull Wedge Climax warrants a Great Exit for Profits after the Bear Bar Closes near its low
Sell Climax: Reversal Up after 2nd Leg Bear Trap
*2nd Leg Tested last weeks low (Everyday likes to test something on the Open; today its last weeks low, it could be yesterdays low, etc.)
Sell Climax: Reversal Up after 2nd Leg Bear Trap
*2nd Leg Tested last weeks low (Everyday likes to test something on the Open; today its last weeks low, it could be yesterdays low, etc.)
Sell Climax: Failed BO below Yesterday’s Low
Sell Climax: Failed BO below Yesterday’s Low
Sell Climax on the Open (No Gap Down) there was then a Reversal up from Parabolic Wedge Bottom as there were several attempts at the market attempting to Bottom out.
*Reasonable to take the 1st reversal trade up even though the first one is usually minor
*Failed BO attempt at the Low increasing the odds of a TR or maybe MTR. It is a LL MTR and a reasonable Buy above a Bull Bar (also in the bottom third of the TR)
Sell Climax on the Open (No Gap Down) there was then a Reversal up from Parabolic Wedge Bottom as there were several attempts at the market attempting to Bottom out.
*Reasonable to take the 1st reversal trade up even though the first one is usually minor
*Failed BO attempt at the Low increasing the odds of a TR or maybe MTR. It is a LL MTR and a reasonable Buy above a Bull Bar (also in the bottom third of the TR)
Parabolic Wedge Sell Climax - Micro DB (The Micro DB Represents a test of the bottom of the Bear Trend)
*Micro DB Buy with Stop above the Bull Bar
Parabolic Wedge Sell Climax - Micro DB (The Micro DB Represents a test of the bottom of the Bear Trend)
*Micro DB Buy with Stop above the Bull Bar
Trend From the Open Bear Trend: Sell Climax
*Became TR DAY (Big Up Big Down = Big Confusion aka TR)
*50% chance of a Reversal on the Open BO
Trend From the Open Bear Trend: Sell Climax
*Became TR DAY (Big Up Big Down = Big Confusion aka TR)
*50% chance of a Reversal on the Open BO
Gap Down: Sell Climax
* A lot of Bulls wait for 2nd Entry Buy with a Bull Bar Closing Near their Highs for MTR after Parabolic Wedge Bottom
Gap Down: Sell Climax
* A lot of Bulls wait for 2nd Entry Buy with a Bull Bar Closing Near their Highs for MTR after Parabolic Wedge Bottom
Big Gap Down: Trend From the Open Bear Trend
Big Gap Down: Trend From the Open Bear Trend
Big Gap Down: Sell Climax and Wedge Bottom - Big Gap down & Bear Trend from the open (consecutive sell climaxes)
*Failed BO below Wedge Bottom, became an even bigger Wedge
*Buy above Bull Bar Closing Near its High
Big Gap Down: Sell Climax and Wedge Bottom - Big Gap down & Bear Trend from the open (consecutive sell climaxes)
*Failed BO below Wedge Bottom, became an even bigger Wedge
*Buy above Bull Bar Closing Near its High
Gap Down: Sell Climax - 2nd Leg Bear Trap (a Sell Climax that Reversed)
*Look for a Reversal into a Bull Trend or Reversal into a TR
*Either way I should be looking for a Reversal up and Bull above Bull Bars
*Usually a Reversal like this is the HIGHLIGHT of the Day
Gap Down: Sell Climax - 2nd Leg Bear Trap (a Sell Climax that Reversed)
*Look for a Reversal into a Bull Trend or Reversal into a TR
*Either way I should be looking for a Reversal up and Bull above Bull Bars
*Usually a Reversal like this is the HIGHLIGHT of the Day
Gap Down: Consecutive Sell Climaxes - Failed BO Below Parabolic Wedge Bottom
*Buy above Bull Bar closing near its High; Remember the first reversal up is USUALLY MINOR
Gap Down: Consecutive Sell Climaxes - Failed BO Below Parabolic Wedge Bottom
*Buy above Bull Bar closing near its High; Remember the first reversal up is USUALLY MINOR
Failed BO Low of Yesterday: 2nd Reversal Up
*Gap Down on open and a Rally to MA & the Bear Trend Resumed with a climax
*The Sell Climax lead to an exhaustive move
*Traders will that the sell and then the Buy
Failed BO Low of Yesterday: 2nd Reversal Up
*Gap Down on open and a Rally to MA & the Bear Trend Resumed with a climax
*The Sell Climax lead to an exhaustive move
*Traders will that the sell and then the Buy
