Trading the Open
First we advise against trading the open, but if you gotta do it then this will probably work.
Skip the Open
The open (930 - 1030) is when we see the most volatile price action with price quickly moving up or down before completely reversing within minutes.
This happens almost every day in the market due to things like:
Pre-market change: if we open significantly higher or lower than the previous close
Overnight news & reports: markets will react to CPI reports, earnings releases, geopolitics
Positioning for the session: if Wall Street is setting us up for a massive pump, they love to nuke the price first
The open is the most difficult time to trade and not recommended for beginners!
09:50 - Price starts to nuke from the blue line
10:08 - Price has moved 2.5 strikes lower
10:35 - Almost the entire move is retraced
18 minutes to go down 2.5 strikes and then 27 minutes to retrace almost the entire thing.
This happens almost every day in the market.
Trading the Open (Advanced)
Year to date the best performing 0DTE strategy for the open has been SPY & QQQ EDGE ALERTS with 50% WR and Volume over 110.
From 01/01/24 - 11/13/24 there are 68 trades and using the advanced strategy you're returning 56.07%.
P&L jumps to +66.46% if you only trade QQQ.
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