When I was a new trader I lost $1000’s of dollars trying to trade market open.
I didn’t know what to look for or how to execute trades fast.
In this thread I’ll teach you:
How To Profitably Trade The Market Open👇
(1/11)
I didn’t know what to look for or how to execute trades fast.
In this thread I’ll teach you:
How To Profitably Trade The Market Open👇
(1/11)
Why is playing the open hard?
The opening of the market usually has the most volatility and volume.
Due to this traders will get stopped out or sell too fast when they enter a trade.
To mitigate this in this thread we’ll talk about:
- Market Pattern
- Key Levels
- R/R
The opening of the market usually has the most volatility and volume.
Due to this traders will get stopped out or sell too fast when they enter a trade.
To mitigate this in this thread we’ll talk about:
- Market Pattern
- Key Levels
- R/R
1) Market Pattern
To help identify which trade we’re going to take into open we need to look at the higher time frame pattern.
Open is a very volatile time, so you need to enter the market with a clear indication of what way the market will trend.
To help identify which trade we’re going to take into open we need to look at the higher time frame pattern.
Open is a very volatile time, so you need to enter the market with a clear indication of what way the market will trend.
1.5) Market Pattern
For example on this $TSLA chart on the 1 hour timeframe we see a bear flag being made on a down trending chart.
This helps show us that we want to play short (puts) off the open.
For example on this $TSLA chart on the 1 hour timeframe we see a bear flag being made on a down trending chart.
This helps show us that we want to play short (puts) off the open.
2) Key Levels
Now to play this pattern we need to go on the 1 minute timeframe to draw key levels that we can use as support and resistance for the stock.
These levels will help us enter the stock and show us where we can take profit along with setting our stop loss.
Now to play this pattern we need to go on the 1 minute timeframe to draw key levels that we can use as support and resistance for the stock.
These levels will help us enter the stock and show us where we can take profit along with setting our stop loss.
2.5) Key Levels
In the case of $TSLA we see the levels are drawn from previous day 1 minute pivot levels along with key Psychological levels at whole numbers.
In the case of $TSLA we see the levels are drawn from previous day 1 minute pivot levels along with key Psychological levels at whole numbers.
3) Risk/Reward
Now we want to see how $TSLA reacts in pre market and what level it wants to open up near.
Depending on this we can create a trade with proper risk/reward and set an order for market open.
Now we want to see how $TSLA reacts in pre market and what level it wants to open up near.
Depending on this we can create a trade with proper risk/reward and set an order for market open.
3.5) Risk/Reward
In this case we see the stock opening below the bear flag and near our level of 136.50 and 136.12.
Therefore the 2 outcomes of trades we can take are as follows:
1- Enter 136.50, profit of 135, stop HOD, 8.7R.
2- Enter 136.12, profit 135, stop 136.50, 1.9R.
In this case we see the stock opening below the bear flag and near our level of 136.50 and 136.12.
Therefore the 2 outcomes of trades we can take are as follows:
1- Enter 136.50, profit of 135, stop HOD, 8.7R.
2- Enter 136.12, profit 135, stop 136.50, 1.9R.
Play The Trade:
Now if we let the trade play out and follow our plan, we see the 1st trade pan out.
Therefore we entered using 136.50 and shorted to 135.
Now if we let the trade play out and follow our plan, we see the 1st trade pan out.
Therefore we entered using 136.50 and shorted to 135.
In Conclusion,
Using this strategy playing the open is very effective & profitable with low risk.
The trades are planned out and have defined targets and stops.
If this thread helped you:
- Like + Retweet Original Tweet!
- Follow Me for Education! ⚡️
Using this strategy playing the open is very effective & profitable with low risk.
The trades are planned out and have defined targets and stops.
If this thread helped you:
- Like + Retweet Original Tweet!
- Follow Me for Education! ⚡️
P.S-
If you like video form better & want a more in depth explanation of this strategy I made a whole video on it: 👇
How To Trade The Market Open
youtu.be
Also if you want to see my trades daily follow me on: 👇
instagram.com
If you like video form better & want a more in depth explanation of this strategy I made a whole video on it: 👇
How To Trade The Market Open
youtu.be
Also if you want to see my trades daily follow me on: 👇
instagram.com
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