ICT YT - 2023-05-08 - NDOG - New Day Opening Gap - Part 1
Last modified by Drunk Monkey on 2023-05-14 06:20
Outline
00:00 - New Day Opening Gap Chart.
- Introduction to the new day opening gap.
- Closing price of the previous session.
02:20 - Extending the new day opening gap into future price action.
- New day opening gap extended into future action.
- Non-farm payrolls data.
03:50 - How to use the New Day Opening Gap.
- The new week opening gap.
- How to use the new day opening gap multiple months.
05:00 - The importance of carrying the data forward throughout the week.
- Carrying the data forward and casting it throughout the week.
- New day opening gap.
06:29 - New Day Opening Gaps -.
- Optimal trade entry in the new day opening gap.
- New day opening gaps.
Transcript
| 1 | 00:00:00,000 --> 00:00:13,740 | ICT: Hi folks, welcome back. This module is going to be discussing my new day opening gap |
| 2 | 00:00:20,430 --> 00:00:31,590 | okay, just like we discovered in the new week opening gap, the new day opening gaps openings are not random than either. So we're gonna take a closer look here |
| 3 | 00:00:31,830 --> 00:00:52,620 | at a new day opening gap opening price. Okay, so we're looking at the Third of May 2023. And see the 6pm, restart, there's a our break in futures trading. And |
| 4 | 00:00:52,620 --> 00:01:02,460 | you can see that actually occurring here in this chart, here's a five minute chart. So the opening price is the very first tick or trading price. That's not |
| 5 | 00:01:02,460 --> 00:01:14,100 | random. It's offered to the market and which every trade gets filled there, that starts the beginning of the new day opening up, then we look at the closing |
| 6 | 00:01:14,100 --> 00:01:27,390 | price from the previous session. And as we mentioned before, closing prices are not a random price event. They're so New Day opening gap, the closing price of |
| 7 | 00:01:27,390 --> 00:01:39,930 | the previous session here. So this is the 5pm. session as and DOJ are New Day opening gap forms every day, Monday, Tuesday, Wednesday, Thursday, and then |
| 8 | 00:01:39,930 --> 00:01:48,600 | Friday, we don't have it there. Because we have the new week opening gap the difference between where we closed on Friday, and where we open on Sunday. So |
| 9 | 00:01:48,600 --> 00:01:58,680 | here's the closing price on the previous session at 5pm. And then one hour later, we reopen in the futures market at 6pm. So that's our new day opening |
| 10 | 00:01:58,680 --> 00:02:14,010 | gap. Now I call this May 3, because it's in my timezone the third midnight on the fourth that starts may 4. But this is all factored as part of May 4 is |
| 11 | 00:02:14,010 --> 00:02:28,620 | trading on trading view so that way, it's not a point of confusion. Between the two price points here, this is your new day opening gap. Now we're going to |
| 12 | 00:02:28,620 --> 00:02:41,370 | extend the new date opening gap into future price action. Okay, here's that same gap, just put more data on it. This is from Wednesdays 6pm. My local time in New |
| 13 | 00:02:41,370 --> 00:02:50,460 | York. That gap that's created a new day opening gap. I've extended it through the fourth and nonfarm payroll Friday, once you pay careful attention to seeing |
| 14 | 00:02:50,460 --> 00:03:01,560 | how price is respecting that New Day opening gap here as support, become down support, resistance, consolidates around it equilibrium between the high and the |
| 15 | 00:03:01,560 --> 00:03:12,870 | low See, gravitating around that. And look at the difference how price comes back down into here. So we offered this buy side, then we offered this sell |
| 16 | 00:03:12,870 --> 00:03:23,820 | side, and then it rallies up, trades into inefficiencies here, sells off. And you saw me actually show all of the trades in here with all this information as |
| 17 | 00:03:23,820 --> 00:03:41,010 | well in the previous review, and creates resistance here. Resistance once more multiple times resistance, support, support sweeps the stops, rallies resistance |
| 18 | 00:03:41,580 --> 00:03:55,320 | support, digs down more time into it here and sends a higher post Non Farm Payroll data. So I want you to think about how I taught the new week opening gap |
| 19 | 00:03:55,740 --> 00:04:06,090 | and how we can use as many as many weeks in multiple months. Looking back 60 days, the new day opening gap sometimes may not actually form there may be very |
| 20 | 00:04:06,090 --> 00:04:20,070 | little separation between where we close at 5pm. And where we resume opening a new trading session at 6pm. This pattern that forms with this new day opening up |
| 21 | 00:04:20,520 --> 00:04:32,850 | may not be an everyday event. So if it's not showing a meaningful separation between the two price points, I won't even utilize it. Okay, so if it's like one |
| 22 | 00:04:32,850 --> 00:04:46,050 | tick, or like two ticks, I'm not terribly excited about that. It can respect it, but I generally don't like to see those types of New Deal being gaps. I prefer |
| 23 | 00:04:46,050 --> 00:04:55,620 | to see a separation like this. Okay, where it's much more meaningful, you can see a real separation. There isn't a specific number of handles or points that I |
| 24 | 00:04:55,620 --> 00:05:06,570 | like I just don't want it to be less than preferably. It's got to be at least more than one here. And so carrying the data forward and casting it throughout |
| 25 | 00:05:06,570 --> 00:05:17,280 | the entire week, once that week closes, I'm not interested in that new day opening caps on all the words, this has been utilized last week, I'm not |
| 26 | 00:05:17,280 --> 00:05:25,620 | interested in these two levels now going into a new trading week. So in my opinion, in my note, my own analysis, the new day opening gap, I'm only |
| 27 | 00:05:25,620 --> 00:05:34,080 | interested in for the week, when the week ends, and we start a new week, I'm going to utilize the very first New Day opening gap and extend that throughout |
| 28 | 00:05:34,110 --> 00:05:43,320 | the entirety of the week. If you go through your charts, you'll see for ES there wasn't really any other meaningful New Day opening gap, except for this one |
| 29 | 00:05:43,320 --> 00:06:00,240 | here. And look how it was treated into Thursday and Friday's trading. Once it closes the gap, that's not a point of abandoning the gap. Okay, we refer back to |
| 30 | 00:06:00,240 --> 00:06:10,770 | that area, again in the future. And you can see how price gravitates around that here. And it's it's hard to argue against the idea that these levels will be, at |
| 31 | 00:06:10,770 --> 00:06:20,220 | least for the weak, impactful support or resistance levels, if you want to call it that. I like the idea that repricing to very specific PD arrays, when it |
| 32 | 00:06:20,220 --> 00:06:28,740 | touches it is not that it's touching here and often is support to go higher, it's going down and there's a confluence between that old New Day opening gap |
| 33 | 00:06:28,770 --> 00:06:40,410 | low. Over here, we're open at 6pm. extending it forward. What's also here a fair value gap in the form of a buy side and balance loss on inefficiency. So from |
| 34 | 00:06:40,410 --> 00:06:54,480 | here to here, dropping down, that's optimal trade entry. ote it's a fair value gap. And it's also the time where it closes in that gap with every touch to that |
| 35 | 00:06:55,950 --> 00:07:06,510 | new day opening gap Hello, friends and support allies up hits it one more time here taking our sell side. One more time relative equal lows here. What's below |
| 36 | 00:07:06,510 --> 00:07:24,960 | that sell side dips below that during the London session on Friday rallies hits it as a high what we have here, low high lower low bullish breaker trades into |
| 37 | 00:07:24,960 --> 00:07:35,880 | it here after hitting that fair value gap bullish breaker rallies and digs back into what the breaker but also respecting because the bodies didn't close below |
| 38 | 00:07:36,600 --> 00:07:44,880 | that New Day opening gap high. So the wicks do the damage but the body tells the story. The bodies of these candles were not willing to even close below that |
| 39 | 00:07:44,940 --> 00:08:00,240 | swing low. So we dug down into this old New Day opening gap Hi, allow price to send it higher puree got Autoblog and then starts to rally New Day opening gaps. |
| 40 | 00:08:00,810 --> 00:08:13,140 | I like to see them act as a supporting factor or a resistance to an idea that I have already arrived at with other PDAs or other analysis concepts. So it's not |
| 41 | 00:08:13,140 --> 00:08:22,800 | to be a Windows not panacea. It's just one of those things that I like to add to. And also, if it hasn't already done this new day opening gap, repriced to |
| 42 | 00:08:22,800 --> 00:08:31,980 | the high over here and this is reversed for when it gaps higher it is anything. I'd like to see it trade up into and reprice that. So this right here would be a |
| 43 | 00:08:31,980 --> 00:08:42,420 | really easy trade where we open we trade down consolidate around the low bid with the gap here. So trading up to the high of that new day opening gap would |
| 44 | 00:08:42,420 --> 00:08:50,700 | be a very easy bread and butter type scalp. And that would be like an Asian session trade that you can utilize if it's time to date where you can study or |
| 45 | 00:08:51,570 --> 00:08:57,330 | look for opportunities to take pre op found this one insightful and I'll talk to you next time. Be safe |