Rather than a magical clock, a simple concept of the high made first transcending to the low made first, whenever that may occur. Strong close implies (but not guarantees) a strong open. As far as I'm concerned, buying the open is not2smuckingfart. In theory, the one price point that all participants get. And, in theory, the point that cleans out the most open orders. In reality, where the ax moves from his basis (often with volume) It's referred to amateur hour for a reason. Oh yeah, volume, the illusion of safety in numbers. Provokes the feeling of being left out. Again, it's referred to amateur hour for a reason. Now, selling an open, on a gap up. That's a different matter. Often a gift.
efficiency" brings up a great point about buying the open;most money is lost buying gap ups that dwindle down..however,a proficient trader can make plenty of money near the open..you just have to get out quickly.one of the biggest amateur moves is to panic buy a stock at the open because of a big gap up..wait for it to settle and consolidate..thats why i said buying after 1 is a good idea.
You didn't read my first paragraph. An opening gap up, that holds, would be LMF. IF it fades, conversely becomes HMF. In the context of being long, you can only make money on an LMF. Period. Consequently, one needs a threshold, whether time (such as first 20 min, first hour, etc. ) OR.....................price point THAT constitutes LMF. Buying an opening gap as a blind plunge is a 50/50 proposition. It may work. It may not. Pretty much sloppy trading. This is a predator prey arena, and the ax "sees 'em coming". By 1 PM, anything that's going to move will already have made much of it's move. Yessss, the lunch period is typically when apprentices (not o be confused with Donald Trump) are instructed NOT TO MOVE THE PRICE.