Opening Range Break Out
Defined by first two days of the month
Be wary of the pivot
1st indicator: Opening Range green lines (determines supply and demand/bias of market, defined by the first 2 days of the month
2nd indicator: Shadow pivot blue band (information taken from prior month or time period)
shadow pivot band: (high+low+close)/3 = A (high+low)/2 = B A-B= R=Differential
A+R = Top Band A-R = Lower band
Concepts: You either want to trade through pivot or against pivot. The opening range is more important though because it simply measures supply and demand. If market breaks above opening range and holds you create a long bias until the market breaks below opening range. Add a the pivot to the scenario and create tighter stops and explosive outcomes. Narrow pivot ranges relative to prior months generally result in larger moves. Most important concept is know where you will get out. This works for all markets that are liquid AND volatile in any time frame.
Spend 7,000 hours studying this and you will understand.