Highest Open / Lowest Open Trade

If I'm understanding the rules correctly...

We SELL when price open in area of interest (between today's high and today H1 highest open) and when BID price move down to reach H1 Highest open level, initial stop place at today's high. then money management takes over.

We BUY when price open in area of interest (between today's low and today H1 Lowest open) and when ASK price moves up to H1 Lowest open level, initial stop place at today's low. then money management takes over.

there's no TP set, all based on trailing stops so Risk reward is per trade basis and not strictly defined on entry.
And be cautious when price opens above yesterday's high or below yesterday's low (maybe don't trade or trade with lower risk percent)

Did I miss anything?

Take the 10 Trade Challenge. That's how you learn.

How do you manage the trade under these conditions?

Do you take profit at BE+5 or do you move stop to BE+1?


Socratic method is named after the classical Greek philosopher Socrates. It is a form of inquiry and discussion between individuals, based on asking and answering questions to stimulate critical thinking and to illuminate ideas.

Do you combine this idea with any indicator or candlestick pattern?

What is price telling you?

Price is staying above the previous D1 High.

Price has ranged only 70 pips or 44% of its ATR(100).

Price is making higher H1 opens.


Socratic method is named after the classical Greek philosopher Socrates. It is a form of inquiry and discussion between individuals, based on asking and answering questions to stimulate critical thinking and to illuminate ideas.

When is the best time to go fishing?

"Generally, the best time to go fishing is early morning (around sunrise) and late evening (around sunset), as fish are most active during these periods of low light when they are actively feeding; cloudy days and light rain can also be good fishing times as they mimic low light conditions and attract baitfish to the surface."

When is the best time to trade?


Socratic method is named after the classical Greek philosopher Socrates. It is a form of inquiry and discussion between individuals, based on asking and answering questions to stimulate critical thinking and to illuminate ideas.

Stop loss = ?

Entry = ?

Target = ?

How would you trade the present situation?

Socratic method is named after the classical Greek philosopher Socrates. It is a form of inquiry and discussion between individuals, based on asking and answering questions to stimulate critical thinking and to illuminate ideas.

Rule #8

Methods only offer opportunities. It is up to the trader to take them.

New H1, M30 and M15 higher opens.

Should I assume traders see how this works?

Mental Model of the Week
V3 | Systems | Margin of Safety

Margin of safety is a secret weapon. It’s the buffer, the extra capacity, the redundancy that you build into a system to handle unexpected stress. It’s the difference between a bridge that can barely handle the expected load, and one that can hold ten times that load without breaking a sweat.

You can apply a margin of safety to any area of life with risk. The key is always asking yourself: What if I’m wrong? What if things don’t go as planned?

But here's the rub: margin of safety isn't free. It means spending more upfront. In the short term, you'll look overly cautious and leave immediate profits on the table. But in the long run, this apparent overcaution lets you survive when others break - and thrive when others merely survive.

Margin of safety is the unsung hero of long-term success. It’s not flashy. It’s not exciting, but it’s the foundation on which everything else is built. Master it, and you’ll be well on your way to navigating the uncertainties of life with confidence and stability.

— Source: The Great Mental Models v3: Systems and Mathematics

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However, not everyone was receptive to change. Some employees resisted the new approach, choosing to sabotage the process rather than improve their performance. They preferred to be right about the process not working than to be successful.

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