[namstrader]

I have my own method that was not taught to me but developed from months of observation. I begin to look for an entry after I see a three or four point trendline break with both the cci and rsi on the 3 and 5 minute charts. Not an absolute but I begin to salivate when they appear. Just look at historical charts and see for self when they appear.

[Soultrader]

Originally Posted by torero »

The previous chart shows the force index on the bottom. I use it for the first hour, then ignore it the rest of the time. By then I already have an idea what the market looks like after many bars have appeared since opening.

I usually get an idea of the last hour of the market the previous day but volume (or lack of) is very important in the morning to confirm the previous day's action. In some ways, the last hour is used and extended into the opening to get direction (higher high/higher low and lower high/lower low). You can see from the chart, the previous day action was already making lower high/lower low. So it continued down on opening, but volume sided with the bulls (shown on force index) and reversed. I waited for the next higher high, then on the higher low to make the entry.

Yep, my mentor taught me that before anything else. Everything else made sense later on after understanding this concept. Now you know my secret.

Very true about the afternoon session being a continuation of the opening session. In the YM I have seen reversal take place in the morning while continuations take place in the afternoon.

Higher highs/higher lows & lower highs/lower lows...... one of the best concepts I learned early in my career as well. Thanks for sharing torero.