Simple Method On The Opening Play

[Soultrader]

I use a very simple method to play the opening play. This is good for the initial setup.

The TICK's are like the horsepower and price the car. The higher the horsepower, the more likely price will lift.

The first thing I do is to look where the TICK's open. In this case (see attachment) the TICK's opened up in positive territory. The TICK's then retraced and held at the zero line forming a TICK hook. This is my first signal.

Second, I look at the closest line of pivot. In this case this would be the daily pivot. Since price broke above the daily pivot, this gave me the second signal based on price action.

Hence, my long signal and a long setup. I enjoy taking this setup because I can always use a 10 point stop somewhere below the pivot point which I feel comfortable with.

Of course this setup must be praticed and used in conjunction with your daily homework/analysis. For Oct. 4th, the daily pivot was a key pivot level I was going to be watching. Once price held at that level my bias for to the long side.