I’d like to expand upon a little side-comment made in the fifth image from last week’s article.
We’ve discussed choppy conditions quite a lot on my site.
The plan is usually the same.
- Recognise the chop.
- Define the upper and lower boundary of the structure. Put in price alerts if you wish.
- Step back from the keyboard, remain patient, and wait for a break of structure before resuming trading.
This comment from last week’s article adds a new element to consider, at those times when the choppy narrow-range structure occurs at market open.
So often we see that it’s the price action immediately before (or after) the 10:00am timing, that shakes the market out of it’s slumber and commences the real move.
No guarantee… but it’s something you need to be aware of. And if you’re taking the opportunity to step out of your room to clear your head, make it quick and be sure to return no later than 09:55am.
Perhaps we could add a fourth point to the list above, for market opens.
- If you’ve stepped away from your room, make sure you’re back and focused by 09:55. So often we will see the break of structure occurring a few minutes before or after 10:00am.
Why? Because it’s a significant event – the first half hour is complete and a whole bunch of HTF candles will be closing: 5m, 15m, 30m and 60m.
And so by ensuring you’re back before 10:00, you may just find a way into the market BEFORE a break of the structure.
Want another example?
If you read last week’s article on Friday, or perhaps over the weekend, I’m curious as to whether or not you recognised a similar situation on Monday (for those trading NQ/MNQ obviously).
Similar. Not exact. But following the same general sequence of events.
Want another example?
You’ll notice in this article from early February, where the opening sequence became stuck between two close proximity S/R levels, that the break occurred immediately after 10am: https://yourtradingcoach.com/trading-process-and-strategy/when-the-opening-sequence-gets-stuck/
Lesson: When the market open is narrow-range sideways chop and you need to step away from your room to clear your head, be sure to return and be focused by 09:55. So often we will see the break of structure occurring a few minutes before or after 10:00am.
Make sure you’re ready for it.
Absolutely wonderful article, as always. I found about 10:00 am shifts myself not a long time ago, and it’s good to see you talk about it as well!
If you look back at a lot of older TA books (90s and earlier) they refer to the 10:00 reversal. It’s a poor name in my opinion as there is not always a reversal. But there is often an effect of some kind in changing structure or sentiment.
Yes, the 10:00 sentiment or structure shift make sense , because a lot of traders like to have some structure to operate with(me included). Also, I loved how you explained that a lot of HTF candles are closing, I’ve never though about it. I just considered first 30 minute as opening range , and building sentiment (potential traps , etc.). First 30 minutes are very important for me, they help me to build confident ideas that I’ve no fear to operate with.
Thanks Atul. 🙂