When we talk about price we usually refer to price as "up" or "down" or "going up" or "going down". The reference point is usually an open, in most cases the daily open. Another perspective or reference would be "moving towards" or "moving away". "Price moving away" from the open indicates the distance is increasing. "Price moving towards" the open indicates the distance is decreasing. Once you enter a trade, price has to move away from your entry in the direction you choose for you to gain. There are two points of reference, the open and your entry.
"95% of the time price will close above or below the open." Amateurs will never see the edge in this quote, unless a professional point it out where the edge lies within this quote. I am not sure who is the original author of this quote. I found it on a post by CrucialPoint.
Testing this statement shows it holds true for daily and weekly periods. At the hourly or H1, it is closer to 90%.
The obvious conclusion is the closer your entry is to the open, the better the chance for a positive outcome.
The chart has dotted lines for the last 24 H1 opens. Each open price is listed with the difference in pips from the current price.
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
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