A! Weekly Open - Bull Bear

question>Who the hell use the weekly bias open for direction

That's a great question, and it gets right to the heart of a specific, but popular, style of technical analysis. The "Weekly Open" is a key reference point used primarily by:
1. Price Action & "Smart Money Concepts" (SMC) Traders:
This is the biggest group. Traders who follow methodologies like ICT (Inner Circle Trader) or similar SMC frameworks live and die by these key institutional levels. For them, the weekly open isn't just a random price; it's the starting point that frames the entire week's "narrative."
2. Short-Term Swing Traders & Day Traders:
These traders need a directional bias for the next 1-5 days. The weekly open provides a simple, high-timeframe anchor. It helps them avoid getting chopped up by lower-timeframe noise. If the market is holding above the weekly open, they will have a higher conviction to look for buy setups. If it's below, they'll focus on shorts.
3. Traders Seeking Simplicity and Clarity:
Many traders suffer from "analysis paralysis," with dozens of indicators on their charts. Using the weekly open is a way to cut through the noise. It provides a single, unambiguous line on the chart. You are either above it or below it. This binary logic simplifies decision-making.
Why the Hell is it So Important to Them? The Logic Explained
The core idea is that the weekly open acts as a "line in the sand" for the week's trading activity. It's the equilibrium point from which the weekly story unfolds.
Here’s the simple logic they follow:
If the price is trading ABOVE the Weekly Open: The bias is BULLISH.
The market is "accepting" higher prices relative to where it started the week.
Traders will primarily look for buying opportunities (longs), often on pullbacks towards the weekly open or other support levels.
The weekly open itself is now considered a key support level.
If the price is trading BELOW the Weekly Open: The bias is BEARISH.
The market is "rejecting" higher prices and "accepting" lower prices.
Traders will primarily look for selling opportunities (shorts), often on rallies back up toward the weekly open or other resistance levels.
The weekly open is now considered a key resistance level.
A Simple Analogy:
Imagine you start a road trip. The weekly open is your starting point. At any moment, are you north or south of where you began? That simple piece of information gives you your overall direction, even if you take a few detours along the way.
The Crucial Caveats (Why It's Not a Magic Bullet)
Now, the people who use this effectively don't just blindly buy above the open and sell below it. They use it as a filter or a confluence factor, not a standalone strategy.
Context is King: They combine it with higher timeframe market structure. If the daily and weekly charts are in a strong uptrend, they will give more weight to a bullish bias above the weekly open. If the market is in a downtrend, they might see a move above the weekly open as a prime opportunity to short.
The "Judas Swing": A core concept in ICT/SMC trading is that the market will often make a false move at the beginning of the week (Monday/Tuesday). It might dip below the weekly open to grab liquidity (stop losses) before reversing and spending the rest of the week trading above it. A savvy trader waits for this kind of manipulation to play out before committing to the "true" direction.
Ranging Markets: In a choppy, sideways market, the price will crisscross the weekly open repeatedly, making the bias unreliable. This is where the tool loses its effectiveness.
In summary, the weekly open is used by a specific subset of technical traders who need a simple, powerful tool to establish a directional bias for the week. It's their anchor in the sea of market noise, helping them frame the narrative of whether big money is accumulating positions (buying) or distributing them (selling) for that week