Thread by @MapleStax

🧵 How to Trade Market Open 🧵

(A THREAD)

This thread will detail how I play the open on LC Options, but can be applied to anything. This strategy will provide a clear risk to reward parameter that you need in order to give yourself and edge.
#ChartHashira 🍁

1. Each morning I will set alerts on VIX, SPY, and NQ at key resistance/support levels to give myself awareness throughout the day without taking my eyes off my execution screen. I then go to the ticker(s) I plan on trading that day.

2. I look for any patterns or formations on the micro and macro trends. I mark the Prev HOD/LOD, PM high/low, as well as the high and low right before close if they are significant. You should have 2 channels.

3. I will zoom out and draw any Supply or Demand zones from the 30m/1hr chart. With the 2 channels you have created you must pay attention to the pivots and who is showing dominance within the channel.(HH,HL,LH,LL) Are bulls or bears stronger as presented by price action?

4. I then select contracts by the possible reactions to those zones. If price comes to a demand zone and it is being absorbed by buyers (lower wicks) then I look at the first 1-3 OTM contracts.

5. If price is going through the zone rapidly I am prepared by not placing blind orders and being patient awaiting the reaction to the zone. If price breaks through demand, I will wait for the base (retest) to be proven as support for the new downtrend.

6. This of course being used in the same manner if price was approaching Supply. Practice this strategy this week and challenge yourself to be patient and let prices come to you. Don’t be greedy and scalp every pivot, that’s what they want you to do.

7. For the visual learners:
#ChartHashira

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