What is happening when the open doesn't reverse?

Discussion in 'Trading' started by Aston01, Jul 15, 2013.

  1. Aston01

    Aston01

    A fair amount of time it seems like there is a reversal somewhere within the first 5-45 min after the open. There are days though when the market opens and it just moves in a singular direction without much hesitation and some days it just never turns around. It makes sense that on these days there was a bias without much resistance and after the fact it looks like a non brainer.

    My question is ...Does anyone know of a way to gain a little bit of insight into the likeliness of this type of move happening in advance of the 9:30am open? I am not necessarily interested in trying to predict the future, but I sure would hate to say I didn't at least ask if someone more knowledgeable knew of a better way.
     
  2. Technical damage tends to do it.
     
  3. Aston01

    Aston01

    What about in situations where it opens just about where it uneventfully closed the prior trading session ?
     
  4. You need a convincing signal to trade, otherwise you risk running into chop. Price dancing up and down the previous close.

    It is not easy at all, otherwise most wouldnt fail at daytrading.