Highest Open / Lowest Open Trade

Move above highest open

For a new high, price moves above the open, and for a new low, price moves below the open.

That is true, but it is not the correct answer.

That is true, but it is not the correct answer.

Only use 4 words!!

Price moves over the open to make a new high, price moves down the open to make new low

That's more than 4 words! In fact, you used 19 words!

Price is moving _____ _____ open.

You ever watch a game show where you know the answer but the contestants don't?

Or you couldn't figure it out in time and smack your head when they reveal the answer?

Are you enjoying this, Mates?

Move Away From Open

we are already smacking our head

WE HAVE A WINNER!

Do you now see how simple that was?

In order for price to make a high, it has to MOVE AWAY from the open.

In order for price to make a low, it has to MOVE AWAY from the open.

Start to see price as moving away or toward the open. And not just the daily open!

After price makes a higher H1 open, is price moving away from or toward it?

After price makes a lower H1 open, is price moving away from or toward it?

These are simple questions that you can ask yourself as you are getting ready for your next trade.

Attached Image (click to enlarge)

Price moved away from the open and made the high for the day, as well as an H1 higher open.

Price moved towards the H1 Higher Open, passed through it, and kept heading toward the daily open, This happened in 5 minutes and gave the trader an opportunity to take 5 pips.

"Look, for example, at this elegant little experiment. A rat was put in a T-shaped maze with a few morsels of food placed on either the far right or left side of the enclosure. The placement of the food is randomly determined, but the dice is rigged: over the long run, the food was placed on the left side sixty per cent of the time. How did the rat respond? It quickly realized that the left side was more rewarding. As a result, it always went to the left, which resulted in a sixty percent success rate. The rat didn't strive for perfection. It didn't search for a Unified Theory of the T-shaped maze, or try to decipher the disorder. Instead, it accepted the inherent uncertainty of the reward and learned to settle for the best possible alternative. The experiment was then repeated with Yale undergraduates. Unlike the rat, their swollen brains stubbornly searched for the elusive pattern that determined the placement of the reward. They made predictions and then tried to learn from their prediction errors. The problem was that there was nothing to predict: the randomness was real. Because the students refused to settle for a 60 percent success rate, they ended up with a 52 percent success rate. Although most of the students were convinced they were making progress towards identifying the underlying algorithm, they were actually being outsmarted by a rat."

From CnatGpt:

This excerpt highlights an interesting cognitive phenomenon: the difference in decision-making strategies between rats and humans when faced with randomness and uncertainty. Here's an evaluation and interpretation of the outcomes:
The Rat's Behavior:

1. Strategy: The rat used a simple heuristic: it consistently chose the left side after recognizing that it offered food more often (60% of the time).
2. Outcome: This strategy yielded a 60% success rate, the best possible given the rigged randomness of the experiment.
3. Interpretation: The rat's "success" comes from its acceptance of uncertainty and reliance on straightforward behavior. By not overthinking, it maximized rewards efficiently.

The Students' Behavior:

1. Strategy: The students attempted to find a hidden pattern or algorithm to predict the food placement, despite the randomness of the setup.
2. Outcome: Their attempts to optimize led to a lower success rate (52%) than the rat's.
3. Interpretation: The students' cognitive bias toward pattern recognition and overanalysis worked against them. Their refusal to accept the inherent randomness caused them to perform worse, even though they had the cognitive capacity to understand the setup.

Key Takeaways:

1. Cognitive Overload vs. Simplicity:
   1. The rat's simpler decision-making process allowed it to adapt to the situation effectively.
   2. The students, equipped with more complex reasoning abilities, overanalyzed and failed to adapt optimally.

2. The Downside of Seeking Patterns:
   1. Humans are predisposed to look for patterns and causation, even in truly random systems. This tendency can lead to suboptimal decisions when patterns don't exist.

3. Accepting Uncertainty:
   1. Success in uncertain environments sometimes requires accepting randomness and focusing on strategies that maximize outcomes rather than striving for perfection.

Broader Implications:
This experiment suggests that simplicity and acceptance of uncertainty can sometimes outperform overthinking and excessive analysis. It’s a reminder to balance our cognitive abilities with the realities of a situation, especially when randomness or uncertainty is involved.

One can trade this with big lot size.

I trade this on the 14/01/25.
It gave more than 100 pips.

Brillant, Mate!

Some traders are not using the tools provided. Why make it harder than it has to be?

Did you notice the warning?

How often are you reading the information the indicator displays?

“Now, 2 patterns of market behavior happen on a regular basis:
1) the price breaks to new high's (or low's)
2) the price reverses from new high's (or low's)
They happen regardless of time frame.
They are phenomena that can be exploited without the fear if found out by others, that they might cease to exist.” - H. Rearden

I queried earlier about what does price have to do for 1 to occur. As price makes new highs/lows what else is happening? Use no more than 4 words to answer.


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.