Category:ORV

Opening Reversal.

• 80% of days, market test support or resistance in 1st 90 minutes, and the Reversal often becomes high or low of day.
• 80% of days, the market opens have reversals (Opening Reversal, indicating the end of the trend from the open), which means Trend From The Open lasting all day Only 20% of day^[1].
• Generally, when there is a strong BO on the open, the market Reverse in 50% of days, No Matter How Strong the initial BO looks like.
  • when the context is right, the chance of a successful reversal can increase to 60% or higher. For e.g. if the open has a selloff for around 18 bars, and market forms a possible consecutive parabolic wedge bottom, and there is a huge bear bar late in the bear trend, there is 60% chance of a successful bull reversal or 1 more leg down and then reversal. See example in Gap Up and Sell Climax, Then Reversal Up.