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Fractals: Trading the Open of the Week, Month, Quarter...
Dear Professor or BTC team,
Greetings from Balearic Islands, Spain!
I am considering to extrapolate the strategies of the Open of a day session to other timeframes. The reason is clear, it is easy to recognize the Common Outcomes of the Open: 18 bar range BOs, DT/DB, WT/WB, failed BO above/below prior session H/L.
The primary idea that I had it is to look for a 80/100 bars range TF that fitted into the most common time periods: Week, Month, Quarter (or a 1/3 of a Year.)
Timeframes Examples with a US Stock:
- Week: 15 minutes TF (1 week=100 bars)
- Month: 120 minutes TF (1 month=87 bars)
- 1/3 of a Year: Daily TF (1/3 of a year=81 bars)
- Year: 2 weeks TF (Year=104 bars)
What would be your thoughs about this approach?
Thank you in advance for your response.
The opening range strategies can't be extrapolated to continous charts. Al only talks about the opening range when trading the 5 min daily session chart. You will never find such analysis in his weekly report, where he comments daily, weekly and monthly charts.
@ludopuig Thank you for your answer.
It is a bit confusing what you have written because within the Brooks Forex Trading Course markets are continuous charts and he teach us to trade the opening range of the day as he trades the emini (the only difference it is that the opening time it is not exact).
On the other hand, Al has a "fractals approch", he always says that it is a must to trade all the timeframes the same and that he cannot find any difference between a monthly chart or a 1 minute chart.
Ultimately, I think the question it is something to consider. I have been studying the pattern and seems it works, I checked mostly with weekly charts (where I look for the patterns to unfold between 10-20 weeks after the Open of the Year) and daily charts (where I look for the patterns to unfold between 10-20 days after the Open of a Quarter (or even after the Quarter's expiration of futures contracts)). I find importants the Supports or Resistence of last year high/low at a Weekly chart or a last quarter high/low at a Daily chart. ¿What would be then the difference?
A picture to keep ilustrating the point:
This is the weekly chart of emini. There is early in the year a huge bear Breakout that tests last year's low and fail. No matter how strong it is a Breakout at the open, 50% change that will reverse. Therefore, one of the most conservative patterns to trade would be waiting until you see a V bottom with a pullback and then enter a trade afger a good signal bar -or H2- (cup and handle) for example. The Breakout early in the session (year) has been so strong that even if the market reverses completely will not go very far. ¿It is really something to not consider?
¿Could you please transfer this question to get a direct answer from Al?
¡Thank you in advance!
Kindest Regards, Josep.
It seems you have a very strong opinion about that so go to the webinar's end of day Q&A section and place the question there, Al will be answering it live. He doesn't take questions here and only Emini questions in the BPA forum.