I like to trade the open. That’s when the greatest volumes hit the market and price often seems to swing wildly. To me it is a time of opportunity!
But it is also a time when I don’t have a lot of information to go on. Maybe the market has opened higher or lower than yesterday’s close, but I don’t find that gives me much of a clue as to where it will go during the session.
The challenge is to find my bearings and identify potential trades as quickly as possible. This chapter gives a brief overview of the principles I rely on to do this. The next chapter gives the precise rules.
Charts reveal levels at which the market has previously turned. These levels may be price peaks ...