Trading the open is my favorite time to trade. That's when the imbalances between the buyers and sellers is highest imo. Bulls are nervous, bears are nervous and volatility is high and if you are fast, astute and can make quick decisions in the early morning than this time frame could be very rewarding. The open and the close of most sessions will do one of TWO things: Either A: The trend will reverse or B: The trend will accelerate. If the market is selling off or gaps down at the open for example, then Either the selloff will accelerate or reverse shortlt after. Your ability to spot reversals and pattern recognition to pinpoint flags, pennants, tails etc etc will also help in determining whether you are dealing with a reversal or trend continuation. I also AVOID trading after the first hour, cause that's when you'll mostly choppy conditions and that's what'll frustrate and eat up accounts.
Here's a Case Study using MEE over the past few days.
4 comments:
I have been focusing on trading the first 30 minutes recently. How do you enter/exit the trade? Do you trade off the 5 minute charts?
Yes, entry/exit commentary would be helpful. How do you make the decisions on which direction you are gonna go with?
i trade off 5 min. charts. i try and see what the market is doing first, and the i like to glance at the sector to see what the sector is doing. if i see sector weakness for example: i will try and spot setups in that sector: So coal today: once i saw that aci, mee, jrcc, anr all weak, so i tried to spot patern that'd give me good risk reward entires. MEE offered the best entry> i will try and post more charts of trades i have taken. i used to post my trades but i am just getting lazy to post them. i will try and post at least a few a week for you guys.
I love the gaps up or down in the morning. You're right on: perfect trading opportunities due to the volatile nature of unsure buyers and sellers. There's also the market trades that have built up over night. They can significantly raise or lower the price at the opening.
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