Trading Session Open-to-High or Open-to-Low Entry Strategy
Summary
This strategy uses the relationship between a session’s first open and its first high or low to define a directional entry. It goes long when the open equals the first low, interpreting that condition as a possible upward bias, and short when the open equals the first high, treating it as a possible downward bias.
For either position, the stop is based on the entry candle’s low or high, and a configurable risk-to-reward ratio determines the profit target from the entry-to-stop distance. Chart plots, labels, and shaded regions show the entry, stop, target, and risk or reward area. The description gives the rules and visual aids but no backtest results, sample, market regime analysis, or execution assumptions. It also does not explain how “first” is defined across sessions or address whether exact equality is robust to price increments and data feeds, so these details need clarification before evaluating the approach.
Key ideas
- A long setup occurs when the session’s first open matches its first low.
- A short setup occurs when the session’s first open matches its first high.
- The entry candle’s low or high provides the stop reference.
- A configurable risk-to-reward ratio sets the profit target relative to stop distance.
- Chart annotations visualize the setup, but the document reports no performance evidence.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.