Today is February 27th, and we’re diving into the market open session at 9:30 AM Eastern Time. Before we begin, remember that trading is inherently risky—never trade with funds you can’t afford to lose.
Analyzing the Pre-Market Signals
Using the Sonic Trading System, we observed a successful short signal during the pre-market session. However, many traders are drawn to the action at the official market open. While the opportunity can be tempting, I always caution that the market open tends to bring higher-than-normal volatility, making it a risky time to trade.
Market Open Signal
At the market open, we received a long signal at 59 9875. While this was a valid entry point, I opted to wait for a better price using the 50/50 rule—entering at a retracement level that improves the risk-to-reward ratio. This approach ensures that the potential reward outweighs the risk, which is crucial for long-term trading success.
If I had entered at the original price, the profit target would have been the same, but the risk would have been greater. By waiting, I was able to achieve a more balanced risk-to-reward setup.
Key Considerations
When trading the market open, it’s important to factor in:
- Volatility Levels (measured by ATR)
- News Events
- Risk-to-Reward Ratio
Using the Sonic System, I set my profit target at 1x ATR, aligning the target with the market’s current volatility.
Combining Strategies
In addition to the Sonic System, I utilize the At the Open Method, a strategy we’ve been teaching for over 20 years. Combining signals from both methods provides higher probability trades—especially when signals from both systems align within a few minutes.
Learn More
If you’re interested in learning these methods, sign up for a free member account at daytradetowin.com. Membership gives you access to:
- Trials of our ABC software
- Proprietary trading strategies
- Accelerated mentorship programs
Start trading the right way by focusing on price action and avoiding conventional indicators. Join today and take your trading to the next level!
Happy Trading, daytradetowin.com Team
