Market opening trading strategy

How To Use A European Open Forex Strategy.

The forex market operates around the clock, thus not only does one need to be concerned with price movements, but they also need to know the importance of the time at which they are trading. By utilizing certain trading strategies at certain times, traders have a better chance of realizing profits. Different currency pairs are prone to somewhat more consistent movements at differing times of the day.

The following day trading strategy takes advantage of price change patterns but couples the pattern with a time frame that makes the pattern more reliable than if traded at a random time. (Knowing the relationships between pairs can help control risk exposure and maximize profits. See Using Currency Correlations To Your Advantage. )

The strategy is as follows.

A 25 to 40-pip move or more above (or below) the opening price at 7am GMT. Then a 25 to 40-pip move or more below (or above) the opening price. This creates a range of movement on both sides of the opening price. We enter a trade when either the high or low of this range is broken. Ideally, we want to see low, high, low breakout, or high, low, high breakout, although this does not need to be the case. Initial stop is 40 pips. Take profits on half of the position when showing a 40-pip profit. Trail the rest of the position with a 40-pip trailing stop, or alternatively create a second profit target. This can be done by calculating the difference between the morning high and morning low. Then add that difference to the breakout point, this is the profit target (covered in example below). Avoid patterns where initial moves in each direction are larger than 40 pips. Moves such as this create large opening ranges that are tradable themselves.

Because we are going to wait for at least a 25-pip movement above and below the open price, it is common to wait an hour or more for a tradable breakout. Until the breakout occurs, we do not enter into a trade using this strategy.

Why the GBP/USD Pair?

Also, the GBP/USD is a volatile currency pair. It has large swinging moves that create excellent profit opportunities. Where there are large swings and profit potential, there is also the probability of being stopped out. We wait for the market to move both directions before entering a trade so we can reduce the likelihood of being stopped out of our trade. After these initial price movements have taken place, the next move – our breakout - is more likely to have conviction behind it because all the weak positions were shaken out of the market in initial rate swings. (To learn more about other strategies, refer to Confirm Forex Momentum With Heikin Ashi .)

Logic Behind the Strategy.

We enter a trade after this noise and stop triggering has subsided and the market is making its first strong move and triggering a breakout of the either the high or low of the range established after 7am GMT. The morning session does not always play out in this fashion; patience is required in finding the pattern.

At 1.4788, we lock in our 40-pip profit (second circle). The remainder of the position has a 40-pip trailing stop. The market in this example continued to move down to 1.4758. At this point it began to rebound and the remainder of our position was exited at 1.4798 (third circle) for a 30-pip profit. Sometimes the market will run and we will make more on the second half of the position, other times it will stall and reverse resulting in a smaller gain than on the first half the position.

Alternatively, we can use a second profit target by calculating the height of the opening range and then adding/subtracting it from the breakout point. In this example, the opening range is 65 pips. Therefore, we subtract 65 pips from our breakout point at 1.4828, giving us a target of 1.4763 which was also hit in this example (not marked on chart).

Figure 2 looks at an alternative setup. The market moves lower, then higher, pulls back slightly, then continues higher, breaking above the opening range at 1.5842 and continuing over 120 pips higher. The open, low and high of the morning range are marked by horizontal lines. (Learn this simple momentum strategy and its profit protecting exit rules. Check out The 5-Minute Forex "Momo" Trade .)

FREE! See Exactly How You Could Potentially.

Turn $500.00 Into A Growing Monthly Income!

"Using my euro open strategy, I share how I profit from the forex. You could too. "

Joshua Martinez's Euro Open Strategy.

Get Your FREE Forex Strategy Video! Enter your name and on the right for instant access.

Your Free Video.

Watch as I use MTI's trading tools to easily identify profitable entry and exit points, allowing me to take advantage of the market. I call it the Euro Open Strategy - my proprietary Forex trading strategy to the start of the London session, said to contain nearly 70% of all market activity! In this video, you will learn my unique approach and see example trades in my account. Enter your name and below for instant access on the next page. I'll also send a $19.95 Forex eBook FREE to your .

MARKET TRADERS INSTITUTE (MTI) HAS BEEN SEEN ON.

Check out what our Facebook friends are saying!

Hello Everyone I am happy today, I do not know how to put into words the numbers is talking for themselves. I capture 299 !! pips bascet few pairs. MTI thank you!

Because of the chiefs' teachings and mentor-ship i was able to turn a swing of 172 pips into a 900 pip move that completed in 7 days using the sell 6 strategy. Thanks Chief and MTI.

!!again . I love the Fibonacci analysis. 80 and 60 more pips in my wallet today with the NZDJPY and EURUSD.

Copyright © 2016 Market Traders Institute, Inc. All Rights Reserved.

Our address is 3900 Millenia Blvd, Orlando, Florida, 32839, United States of America.

Trading foreign exchange on margin carries a high level of risk, and may not be suitable for everyone. Past performance is not indicative of future results. The high degree of leverage can work against you as well as for you. Before getting involved in foreign exchange you should carefully consider your personal venture objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial deposit and therefore you should not place funds that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts. The information contained in this web page does not constitute financial advice or a solicitation to buy or sell any Forex contract or securities of any type. MTI will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

Past results as represented in these testimonials are not necessarily indicative of future results or success. Testimonials may not be representative of all reasonably comparable students. Forex trading involves significant risk of loss and may not be suitable for all investors.

The information contained in this advertisement is subject to the terms and conditions in our GENERAL DISCLAIMER, RISK DISCLAIMER and PRIVACY POLICY.

Gap and Go Day Trading Strategies | Warrior Trading.

Momentum Day Trading Strategies : “Gap and Go!”

In our recorded webinar I discuss the Stock Trading Strategy that I use every single day. My focus each day is the same. Finding the big gappers, hunting for the catalyst, creating a watchlist, and executing my trades according to the strategy. This is the same thing everyday. Repetition is what makes us so good at these strategies. Discipline is what keeps us profitable. Learning a Strategy for Day Trading the “Gaps” or “Gappers” is critical for success in the market! I trade a Gap and Go! Stock Trading Strategy. Everyday I start the same way. I look at the gappers that are more than 4% using my pre-market scanning tools from Trade-Ideas. Gaps of more than 4% are good for Gap and Go! trading, Gaps of less than 4% are usually going to be filled but I don’t find them as interesting. Once I have found the stocks already moving I search for a catalyst. I use StockTwits, Market Watch, and Benzinga to hunt for news. Only after confirming the catalyst I will begin to look for an entry. My Gap and Go! Strategy is very similar to my Momentum Day Trading Strategy. The difference is that the Gap and Go! Strategy is specifically for trades between 9:30-10am. I look for the quick and easy trades right as the market opens. Gap and Go! is a quick stock trading strategy to give us a profit usually by 10am. In our Day Trade Courses we will teach you the ins and outs of this strategy.

Gap and Go! is a unique Momentum Stock Trading Strategy.

Gapper Checklist (Summary, Details for Trading Course Students Only)

1) Scan for all gappers more 4%

2) Hunt for Catalyst for the gap (earnings, news, PR, etc)

3) Mark out pre-market highs and high of any pre-market flags.

4) Prepare order to buy the pre-market highs once the market opens.

5) At 9:30am as soon as the bell rings I buy the high of the first 1min candle (1min opening range breakout) with a stop at the low of that candle or buy the Pre-Market highs.

Gap and Go Entry Setups (Summary, Details for Trading Course Students Only)

1) Break of Pre-market flags.

2) Opening Range Breakouts.

3) Red to Green Moves.

Entry Setups 4. 5. and 6. are for Trading Course Students Only.

Always look for low float stocks. These will have home run potential written all over them. A stock that has a 10mil share float and trades 1mil share pre-market has already traded 10% of the float. There is an extremely good chance the entire float will be traded during the day once the market is open. These are the type of stocks that can run 50-100% in one day. When we have the right catalyst, float, and retail trader interest, it’s the perfect storm for a big runner.

Review of Stock Trading Strategy “Gap and Go!” Scanner Results.

$OHGI Gap and Go Case Study – First we check the Gap Scanner for potential trade ideas.

$OHGI News Catalyst – Gap and Go trades require a catalyst.

From the Watch List – NEWS OHGI: (14m) 2.16, watching long over 2.20. ›OHGI: One Horizon Group – The Company announced that its App is now supporting China’s mobile pay platforms including Alibaba’s Alipay, Tencent’s Wechat Wallet, and China Union Pay. Gapping up % with a 14.3M share float.

$OHGI Entry based on break of pre-market highs at 2.49, sold on move through 5.82 for over 100% Gain.

Review of Stock Trading Strategy “Gap and GO!” Setups.

$TCCO Gap and Go, squeeze over pre-market highs. Entry at 4.75, ride the momentum.

$ATOS nice clean Gap and Go Setup.

$CONN Gap and Go.

$CSIQ really nice gap with pre-market flag at 23.60, bought this at 23.60 and rode the wave up to 25.00, what a nice move.

$MTSL beautiful Gapper with pre-market high of 1.94. Bought the breakout and sold on the spike up through 2.30 for an 11% move in less than 1minute. Picture perfect!

$NVGN nice gap pre-market with a low float stock, bought the pre-market flag at 2.70, then bought the first pull back at 3.00, skipped the 2nd pull back at 3.13 but that would have been a nice one too!

$BCLI – big gap up in anticipation of news on Monday. Pre-market high of 7.55, bought at soon as it broke and got filled at 7.60, sold on the spike to 8.48. Beautiful opening range breakout.

$NDRM got long at 8.48 as soon as the market opened. This surged up to 11.00 in the first 45min of the market being open. I continued trading this as the day went on, applying our Opening Range Breakout, Flat Top Breakout, Bull Flag Breakout, and Top Reversal Strategies.

$GILD was watching over pre-market highs of 96.16, market opened and it surged up to 97.31, perfect Gap and Go setup.

$LIVE premarket high of 4.10, but flagging under 4.00. Long was 4.00 as soon as the bell rings, popped up to 4.15, sold 1/2, pulled back, when it came back up I doubled up and it surged to 4.25.

Creating 50,000 Freedom Traders Over the Next 3 Years.

Our Mission is to help 50,000 traders on their journey to success over the next three years. Become our next student today!

Attend a free webinar.

Testimonials.

$31,202.73 in profits since joining Warrior Trading. If you really want to learn from the pros, I can say from experience that Warrior Trading offers top notch training from very skilled, highly disciplined and successful instructors.

I promise you there isn't a chat room out there that has this level of experienced traders interacting daily to help one another out , you just can't beat it.

Jeff Nelson.

Dallas, United States.

Up to $5000 in one day. When I first started trading I would have a profit of $3000 in a good month. After I took Warrior Tradings day trading course I now do between $1500 to $5000 most days.

The guys at Warrior Trading has made a course that does not only contain a great strategy but it's also explained so it´s easy to understand.

For people that are serious about their trading, Warrior Trading is the place to be.

Thomas Tovland.

I'm a Veteran trader Finance Degree from OSU and always still learning books audible and purchased Warrior Trading Program so much new and useful information that I bought monthly chat to watch them apply principles they teach and to get some new fresh Ideas.

Excellent trading education even for Advanced Traders with experience.

Brian Levandusky.

Warrior Trading is without a doubt the most professional trading service/family I've ever been involved with. I have been trading off and on for over 15 years and full time for the past year and a half.

The transparency of Warrior Trading is one aspect that attracted me to them. They show you it all. They show you their losses as well as their gains. They are about showing you how to make a profit from the markets.

Alan McRae.

Trading is hard, but warrior trading makes it easier. They keep a consistently friendly atmosphere, which you will find that after trading for a few years, you will appreciate.

Traders like consistency, and when you log on to Warrior Trading you can expect the same service as the day before. There are no surprises. These things are valuable.

They quietly establish an edge, make their money, and leave until the next day. Ross and his team are good guys, and if you were to subscribe to all the different services out there and compare them for 3 months, you would see WT at the top of the list.

I've always been passionate about trading but never really imagined this passion would have turned in a real, full-time job. In fact, I've never found any service which I really felt that would help me become a professional trader.

That is, until I met Warrior Trading. In particular, Ross has been really inspirational while I'm on my path to become a full-time day trader.

I always wanted to trade stocks but I saw all those numbers go up and down and I would always say to myself " I'm never going to get this". I looked at the free Youtube videos and I was hooked. It was the best investment i ever made.

Now I know how to day trade and the scare part about it is gone, I mean, I listened to them and paid for their paper trade and now i feel confident on what I'm doing with stocks.

I really mean this, I took time to write this because I really feel it in my heart that you guys are helping me accomplish my dream and that is to be a daytrader. Thank you warriortrading.

The courses are a must for whoever would like to make day trading a career.

I learn so many ways to help me save money and make money. The day I finished the course I did not have a losing day where I lost over $300 dollars!

My worst loss prior to the course was close to $15k. Ross helps you understand how the losses happen, the psychology behind it and how to prevent it ! I feel a lot more comfortable trading, because now I understand what stocks to pick, when to get in and out and how to manage my risk!!

Moe Al khalili.

Join our chat room Today!

IF YOU DO NOT AGREE WITH ANY TERM OR PROVISION OF OUR TERMS AND CONDITIONS, PLEASE EXIT THE SITE IMMEDIATELY. PLEASE BE ADVISED THAT YOUR CONTINUED USE OF THIS SITE OR THE PRODUCTS OR INFORMATION PROVIDED THEREBY SHALL INDICATE YOUR CONSENT AND AGREEMENT TO THESE TERMS AND CONDITIONS.

Warrior Trading may express or utilize testimonials or descriptions of past performance, but such items are not indicative of future results or performance, or any representation, warranty or guaranty that any result will be obtained by you. These results and performances are NOT TYPICAL , and you should not expect to achieve the same or similar results or performance. Your results may differ materially from those expressed or utilized by Warrior Trading due to a number of factors.

Woodland, CA 95776.

Copyright © 2017 Warrior Trading™ All rights reserved.

What The Market Open Tells You.

Early trading often dictates what is likely to occur over the course of the session. This does not mean a trader can know exactly where the market will go, but rather the information provided near the open can help determine if the day is likely to be ranging, trending, sedate or volatile. By gathering certain types of information, a trader can better prepare themselves for the rest of the day. (For more indicators of how markets will respond, check out 2 Indexes That Help Assess Market Behavior .) TUTORIAL: Stock Basics.

The open is the trader's first chance to get a look at what the trading day may hold (the pre-market also provides clues). Information from overnight and international markets is being absorbed and acted on by groups of traders as the markets head for the open.

Investors have read news overnight and placed their orders with brokers. Professional traders are calculating how this will affect the first few minutes of the trading, and hedge fund and mutual fund traders are either actively involved or taking a back seat.

For day traders, the interaction of these groups provides valuable insight, which can aid the trader as the day progresses. Day traders need to watch:

How much activity is taking place (who, how much and in which direction) If there is confidence in the move Where likely failure or surge points in price reside.

Initial volume in the morning is always high compared to the rest of the day, generally only rivaled by closing volume. Therefore, morning volume compared to intra-day volume explains little. Opening volume must be compared to other opening volume. Increased volume generally means increased volatility and a likely greater change in price. High volume is the result of large institutions buying or selling stock, and therefore attention must be paid to volume. High volume in an index or stock early in the day indicates that institutions are involved and there is a higher probability of daily sustainable trends. Low volume near the open of a stock indicates it is primarily short-term traders involved, and thus the daily climate is likely to be more of a ranging day.

To gain further insight, a trader may wish to filter volume by size. While small orders make up most of the trades on a stock (market), large orders account for most of the total volume. Large orders in the market are a sign of institutional activity. If the large orders sustain themselves in a particular direction, it is a sign of likely trending. Minimal large orders indicate more ranging movements. Large orders going through on both sides of the market indicates range bound short-term, but that a trending move (quite possibly aggressive) will ensue as one side conquers the other. (To learn more about institutions, read Keeping An Eye On The Activities Of Insiders And Institutions .)

Gaps and International Markets.

Traders may begin watching pre-market and see that the indexes and stocks have already moved well away from the previous close on news or correlations with other markets. Some local and global markets are heavily traded prior to the official stock market open. Aggressive moves in these markets provide insight into what is possible as the stock market opens. Have stocks taken into account moves in gold, silver, bonds, oil, currencies and international stock markets? Did these markets have breakouts or severe declines? If so it is highly likely we will see equities adjust according to their correlation with those markets. Little action over night or in other markets indicates passivity and, unless something drastic occurs during the day, the trading day is likely to be dominated by range bound environments.

A trader wants to be able to get some insight into whether an early market move is sustainable or if it is likely to tucker out – and there are many ways to help determine this. This will not only aid the trader in making trades on those moves, but it will also help in determining what the overall tone of the day is likely to be like. Some trader may look at $TICK, which is a measure of NYSE stocks trading at their offer minus the stocks trading at their bid price. It is a good gauge of the number of stocks participating in a move, and extremely short-term changes in sentiment.

Slightly less sensitive indicators traders can use are on-balance volume (OBV), Chaikin money flow or the money flow index. These indicators use slightly different calculations but help to determine if a price move has underlying strength. Aggressive moves off the open which are not accompanied by high volume - or confirming signals from the indicator(s) - suggests an eventual a failure in the move. If the indicators are largely within former ranges, expect price movements to be constrained.

The indicator's particular level is not important in this case, rather, it is how the indicator is acting relative to recent activity. Little change in the indicator(s) (or a move in the opposite direction) with a big change in price, means a likely correction. If the price move is confirmed - that is, if indicators move with price - there is a better chance the move is sustainable and a trend has a higher probability of continuing. (For more on what volume can mean to the trading day, check out How To Use Volume To Improve Your Trading .)

Before the day even begins a trader should draw support and resistance lines – these include horizontal lines and trendlines (sloping). Has the stock or market been in a range lately or has it been trending? Are we near support and resistance? By drawing the support and resistance lines beforehand, a trader will have better understanding of how the day is likely to unfold when trading begins.

If the market has been in a range and opens mid-range, more of the same can be expected. If the market opens near, or even above or below, resistance or support, then confirmations and volume become very important.

Plotting technical levels will also help throughout the day. As the levels are approached, traders can determine if other market factors are pointing towards a legitimate breakout or if the price will pullback from the level based on the aforementioned methods.

No one piece provides all the information we need; rather, all these elements work together to help us determine the type of day it is likely to be in the markets. By looking at international markets as well as other heavily traded commodity and asset classes, we can see if there already have been moves worth noting. Our own technical levels specify points where the price could stop and reverse, or surge. Using volume analysis and indicators can help determine what is likely to happen at our technical levels. The first few moments of trading provide a lot of information. If a trader analyzes that information closely, they will gain insight into whether the day is likely to flat or trending, volatile or sedate. (For further help on technical indicators, see Using Technical Indicators To Develop Trading Strategies .)