I've written a lot about displaying patience at the open. About waiting till the bias is clear and trading conditions are favourable.
But there are some situations where I don't display patience.
Where I'm keen to get a trade on as soon as I can.
No patience. No delays. It's game on!
One of these situations is when the market sets up a trap just before or just after the RTH Open. (RTH = Regular Trading Hours).
Today we'll look at an example which sets up just before the open.
Here's the general concept:
This concept can be applied in any market which offers pre-session trading leading into a clearly defined "regular" day session. Spot forex traders might apply it at the UK open, or the US open.
This example set up a break of the overnight low. Here's what I was seeing: