Say you've decided the night before if you're going to go long or short at tomorrow's open. What is the best algorithm for opening price action when you've decided on a direction (long or short) for the day? I made a list of everything that can possibly happen (within reason) and I'm trying to shorten it to a set of rules that are profitable in the majority of cases. So for example here's one set of possibilities: Say the previous day was a red candlestick. The closing price is called x. Price opens at previous day's close following a red candlestick: - and goes up - and goes up and then turns down and goes below x. - and goes up, comes down and touches x, and then goes up - and goes down - and goes down and then turns back up and goes above x - and goes down, turns back up and touches x, and then goes back down (of course there are more possibilities, more crossings of x, etc., but those are the main ones I can think of). Now, take those same 6 rules and apply them to prices starting above x and below x. Now you have 18 possibilities. Now apply those same 18 rules to follow a green candlestick. Now you have 36 possibilities. I'm trying to come up with an easy-to-follow algorithm that can be applied profitably to these situations, like (assuming you're going long), "go long at open, sell if price drops back below x." That would prevent you from taking a serious loss if the price were to open, go up a bit, and then drop for the rest of the day. It would also keep you safe on a day that went up, came back down and touched x, and then went up for the rest of the day. Get what I'm saying? Right. I think I just need to think about it more maybe. Sorry of this is the wrong forum.