I know some of us like our statistics on this thread. I was working on something last night and discovered that in the past 2 years on GU, on bullish days, price also went bearish from the open line by more than 20 pips, around 45% of the time. Same with bearish days. It went bullish by more than 20 pips around 45% of the time.
This was an eye opener, as I used to think if price went 10 pips or more in one direction from open, that would determine whether the day was going to be red or green.
If we increase the filter to 35 pips or more from open, the head fakes drop to around 25%. In my little brain, this means if we were to set pending orders at midnight for more than 40 pips away on both sides, there's a much smaller chance that we'll hit the orders on both side, and therefore less chance of whipsaw. Just an observation. Comments welcome.
This was an eye opener, as I used to think if price went 10 pips or more in one direction from open, that would determine whether the day was going to be red or green.
If we increase the filter to 35 pips or more from open, the head fakes drop to around 25%. In my little brain, this means if we were to set pending orders at midnight for more than 40 pips away on both sides, there's a much smaller chance that we'll hit the orders on both side, and therefore less chance of whipsaw. Just an observation. Comments welcome.
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