Daily Open

Importance to keep track of Daily Open

How to trade Daily Open

The significance stems from the assumption that when the price is trading above (or below) the open price. From a weekly perspective, For example, On Monday, the daily candlestick closed up above Monday’s open, which illustrates buying pressure (be aware of the fake move!).

Henceforth, when the price is trading above the open price it can be taken as bullish bias and vice versa, Look only to go Long. Other factors such as weekly or monthly buying and selling pressure, the monthly, weekly, daily average range and so on.

Rejection of Daily Open

Rejecting the opening price from a key support zone indicates a possible bullish move of the session or the day and vice versa. However, if the price makes several attempts to the opening price then a high probability price may break the opening price.

Example

In this US30 10 min TF example, the price tried to break the daily opening but failed and the price drops. Notice that, the daily open was also the previous week high. So, a strong key level.

This concept is also applicable to weekly or monthly open. Please deploy Onsen FX Algo on your chart and see how a particular asset or pair reacts to the opening price.