Trading System Based on Monthly, Weekly, and Daily Opening Prices

Introduction:
Hello fellow traders! I’ve been exploring a trading system that revolves around key price levels such as the monthly, weekly, and daily opening prices. This system is particularly interesting because it combines the simplicity of price action with the reliability of key levels. I’d like to share my findings and hear your thoughts, experiences, and suggestions on how to optimize this approach.
Key Concepts of the System:

1. Monthly Opening Price (MOP):
   1. The first trading day’s opening price of the month.
   2. Acts as a major support/resistance level for the entire month.
   3. Price above MOP indicates a bullish trend; below suggests a bearish trend.

2. Weekly Opening Price (WOP):
   1. The first trading day’s opening price of the week.
   2. Used to gauge short-term momentum.
   3. Price above WOP suggests bullish sentiment; below indicates bearish sentiment.

3. Daily Opening Price (DOP):
   1. The opening price of the current trading day.
   2. Useful for intraday trading strategies.
   3. Price above DOP signals intraday strength; below signals weakness.

4. Key Extremes:
   1. Monthly, weekly, and daily highs/lows.
   2. Used to identify potential breakout or reversal zones.

How the System Works:

1. Trend Identification:
   1. If the price is above MOP, WOP, and DOP, the trend is strongly bullish.
   2. If the price is below MOP, WOP, and DOP, the trend is strongly bearish.
   3. Mixed signals (e.g., above MOP but below DOP) suggest consolidation or potential reversals.

2. Entry Points:
   1. Buy: Look for price to bounce off MOP, WOP, or DOP with confirmation (e.g., bullish candlestick patterns, RSI above 50).
   2. Sell: Look for price to reject MOP, WOP, or DOP with confirmation (e.g., bearish candlestick patterns, RSI below 50).

3. Stop Loss and Take Profit:
   1. Place stop-loss orders below support levels (for buys) or above resistance levels (for sells).
   2. Take-profit targets can be set at the next key level (e.g., weekly high for buys, weekly low for sells).

Example Scenario:

1. Current Price: 2723.56
2. MOP: 2521.70 (price is above – bullish)
3. WOP: 2637.02 (price is above – bullish)
4. DOP: 2747.82 (price is below – intraday weakness)
5. Previous Day’s High/Low: 2791.46 / 2662.00
6. Action: Wait for price to break above DOP (2747.82) for a buy signal or drop below WOP (2637.02) for a sell signal.

Optimizing the System:

1. False Breakouts:
   1. Price often breaks a level (e.g., DOP) before reversing. Use confirmation (e.g., candlestick patterns, RSI) to filter out false signals.

2. Liquidity Zones:
   1. Identify areas where stop-loss orders are likely clustered (e.g., below WOP or above DOP). Price often moves to these zones before reversing.

3. Combining with Indicators:
   1. Use RSI, Moving Averages, or Volume to confirm signals.
   2. For example, a bounce off WOP with RSI > 50 is a stronger buy signal.

4. Risk Management:
   1. Risk no more than 1-2% of your account per trade.
   2. Aim for a risk-reward ratio of at least 1:2.

Discussion Points:

1. Have you used a similar system? Share your experiences and results.
2. How do you handle false breakouts? What filters or confirmations do you use?
3. What indicators work best with this system? RSI, Moving Averages, or something else?
4. How do you set your stop-loss and take-profit levels? Do you use fixed levels or dynamic ones based on volatility?
5. Any suggestions for improving this system? Let’s brainstorm together!

Conclusion:
This trading system is simple yet powerful, as it relies on key price levels that are widely watched by institutional and retail traders alike. By combining these levels with proper risk management and confirmation tools, it’s possible to build a robust trading strategy. I’m excited to hear your feedback and learn from your experiences. Let’s discuss and refine this system together!

You might enjoy this video, all markets analysis for the coming week, with emphasis on opens, including Yearly open.

TNX BRO.

I had thought of a similar strategy, but based only on the monthly open and weekly open applied on the D1 chart. A candle with a rejection wick above or below that level is enough to start a trade. For those who are familiar with candlestick patterns and have a long-term mindset, it is an excellent strategy.

Hi, curious as to the daly open you are using. The ICT level of midnight New York or the daily asia session open?
Thanks

Hi!
My clock is set to UTC.

In zone 1, the removal of the previous day's liquidity occurred, in zone 2 - the weekly opening, and in zones 3, 4, 5 - manipulations. In zone 6 - the current direction. I think this way because the removal of the day's liquidity has already happened, and there is no more liquidity below. I expect the price to move upward.

Please, may you share with us your indicator of open levels? Thank you.

ok thanks so based on your time what time is the daily open that you start with?
thanks

Hi! This is an indicator for MT5 and a template for ETHEREUM/USDT.

Do you have the same for mt4 by any chance?TIA

I was wrong to think that the removal of liquidity in zone 1 would stop the downward movement. In area 7, the removal of the previous day's liquidity occurred. I believe the price will now move toward the 2743 level. Let's see...

Sorry, no. Only for MT 5. You can download MT5 Demo and use it.

Hi everyone. The combination of the weekly opening, order block, and liquidity sweep yielded an amazing result.

My TP was hit. . I think a weekly open is very important as a S/R level. But without OB and liquidity is nothing. This trade was on Ethereum. I don't know how will be another investments. Will see...

Today's trading once again demonstrated the importance of watching the reaction to OB (order blocks). It was necessary to consider that the buy-side liquidity was removed yesterday. In block 3, I concluded that an OB had formed and entered later with limit orders. OB 2 showed no reaction, while OB 1 had a very weak reaction. It is possible that the price will test the monthly open at 2521.70.

I may have found a filter for S - THIS IS VOLUME. Together with the opening level of the week, the extreme volume of the bearish candle = bullish. The extreme volume of a bullish candle is bearish. The volume data is taken from the Bybit exchange.

The logic is simple - if the extreme volume is broken up or down, it means there is a lot of capital on the breakdown side. Especially if there is a level above the bullish OB or a level below the bearish OB.

What do you think about this?

Unfortunately, tick volumes differ from actual volumes. Therefore, it is difficult to apply this to currency pairs. If anyone knows, please advise where to find volumes for oil or gold.