Good news… tech problems delayed the start to my trading on Monday.
Well, not good for me I guess, as I missed a beautiful trap entry at the open.
But good for those who were hoping for a followup to the prior article, Trading after Structure has Formed, where we discussed the idea that those who struggle with market ambiguity and uncertainty at the open, may perform better through skipping the opening sequence and trading AFTER some market structure has formed. Let the opening battle play out… and then join when direction is obvious.
It took me four months to get an opportunity to do this followup article, but here we are finally.
My trading day commences at 10:27, so the opening hour has just about played out. Let’s check the state of play…
Setup & structure references: YTC Price Action Trader
A couple of observations:
1. It’s still not always easy. Note the choppy and extended pullback at the top. And the price action which shook me out of my short position.
2. But one thing is made easier by delaying the session start. The fact that market structure was already formed, before trading, left me in absolutely no doubt as to what my plan was. Long above the overnight high level, short below.
That was the key point discussed in the prior article.
I personally love the action at the open. Yes, the structure is uncertain. The signals can often be ambiguous. And the volatility will chop you up from time to time. But when you get it right, damn it can provide some nice moves.
However, not everyone likes this kind of action.
Experience it for a few weeks and you’ll get a feel for whether or not you like the uncertainty of the open.
And if not… that’s all good.
Let the market structure reveal itself. And THEN trade.
Some will prefer to wait for the opening 5 minutes. Others 15, 30 or even allowing the whole 60 minute Initial Balance to form. Others might like it price-based, just waiting for the initial Trading Timeframe swing to be in place.
It’s your choice; found through a process of trial and error.
Give it some thought. If you don’t like market opens, you don’t have to trade them.
Let the market reveal itself. And then trade.
Lovely. Thanks Lance. Always so insightful. Love the pre-market comment
Thanks George. 🙂