Midnight & HTF Opens
Thread on how to use the Midnight & other HTF Opens for Bias
Most people when they refer to 'Time' they refer to killzones & macros but one of the most important aspects to time is the OHLC/OLHC of a candle.
Candlesticks are made up of wicks & bodies. Understanding how these wicks & bodies form in regard to time can significantly help you improve your edge.
The opening price of a candlestick will tell you a lot as time goes on.
The major timeframes opens I like to look at are:
- Daily (NY Midnight)
- Weekly
- Monthly
- Quarterly
- Yearly
I like to use the midnight open for daily bias & use the other HTF opens for weekly bias.
Typically if price is bullish you will see manipulation happen below the open. Once price goes below the open then reclaims above the open this sets a lower wick for the candle.
Now that a lower wick for the candle has been created you're now looking for upwards expansion towards buyside liquidity so the bullish body of the candle stick gets created. This refers to the OLHC of a candle.
Vice versa if price is bearish you will see manipulation happen above the open. Once price goes above the open then drops back below the open this sets an upper wick for the candle.
Now that an upper wick for the candle has been created you're now looking for downwards expansion towards sellside liquidity so the bearish body of the candle stick gets created. This refers to the OHLC of a candle.
For daily candles, use NY midnight opening price as the true opening of the daily candle. Look for manipulation to occur above/below the midnight opening price.
For weekly candles, typically Monday sets the range for the week then Tuesday or Wednesday usually sets the high/low of the week for manipulation.
For monthly candles, the first week of the new month could potentially be manipulation.
For quarterly candles, the first month of the quarter could potentially be manipulation.
For yearly candles, the first quarter of the year could potentially be manipulation.
When price is currently sitting near the open but there was price movement both below and above the open this will show a doji candle on a higher timeframe.
Doji candles means there's an indecision in the market so it's important to let market structure & displacement reveal it's hand when this happens.
In this thread I will use $DXY & $EU as my examples.
You will see here on June 29 that price is currently sitting right at the yearly open & has traded both below and above the yearly open so when you look at the yearly candle you will see a doji.
Doji's = indecision.
Also you have LRLR on both BSL to monthly fvg and SSL to April Low so overall there's not a clear draw on liquidity at this time making it low probability conditions.
Fast forward to Friday July 7 (NFP) price breaks market structure to the downside with displacement creating a SIBI after there was an fu raid right at the 2023 yearly open which shows rejection at the yearly open.
Because there was rejection at the yearly open with the fu raid & there was a mss to downside with displacement the picture was now a lot clearer so at that time I was now looking for the next draw on liquidity to be April low SSL.
Price quickly expanded to take out April Low the following week.
Because DXY DOL was April Low, I was looking at EU DOL to be the EQHs at April high.
The following week EU continued to make higher highs and higher lows to take out April high for that week's DOL.
If you pay attention closely I discussed earlier that if your HTF DOL is bullish then you want to be looking for manipulation to occur below the opens.
the DOL was met.
You can see here that last week's DOL was to April high + BSL and basically every single day there was manipulation occurring just below the midnight opening price until
https://en.rattibha.com/thread/1681290844458868737
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