The market is a numbers game that has enticed millions of people over the years. People take these numbers and twist them into different forms of data, which in turn is their black box to the financial world. Twisting the numbers around can be time consuming and fail to deliver the anticipated results.
One way to cut time and confusion is to look at the opens of the market. It does not matter which market you look at, all your trying to do is figure out who is winning the game – the bulls or the bears. Depending on which time frame you look at depends on which opening price you look at. For long term look at the yearly opens, intermediate term look at the monthly opens, and short term look at the weekly or daily opens. Watching these prices will keep you on the right side of the market.
The day trader must concentrate on the daily opens and for even shorter term, the open every half hour. These “mini-pivots” throughout the day will show the intraday trends as the market fluctuates on its path to the close.
Though you need indicator support, using the opening prices as a guide puts the odds in your favor when entering the market. Every trader is trying to find the answer to one question: whether to be long, short, or out of the market. Keeping an eye on the opening prices will increase your odds of getting the answer to the question correct and keep you on the winning side. Good luck trading.