all right folks welcome back this module is going to be discussing my new day opening Gap okay just like we discovered in the new week opening Gap the new day opening gaps openings are not a random than either so we're going to take a closer look here at a new day opening gap opening price okay so we're looking at the 3rd of May 2023. you can see the 6 PM restart there's a hour break in Futures Trading and 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 traded price that's not random it's offered to the market and which ever trade gets filled there that starts the beginning of the new day opening app then we look at the closing price from the previous session and as we mentioned before closing prices are not a random price event either so new date opening Gap the closing price of the previous session here so this is the 5 PM session as ndog or New Day opening Gap forms every day Monday Tuesday Wednesday Thursday can end Friday we don't have it there because we have the new week opening Gap the difference between where we close on Friday and will be open on Sunday so here's the closing price on the previous session at 5 pm and then one hour later we reopen in the Futures Market at 6 PM so that's our new day opening Gap now I call this May 3rd because it's in my time zone the third midnight on the fourth that starts my May 4th but this is all factored as part of May 4th trading on trading views that way it's not important confusion between the two price points here this is your new day opening Gap foreign extend the new day opening Gap into future price action [Music] okay here's that same Gap I just put more data on it this is from Wednesdays 6 p.m my local time in New York that Gap that's created new day opening Gap I've extended it through the fourth and non-farm payroll Friday once you pay careful attention to seeing how price is respecting that new day opening up here as support we come down support resistance consolidates around it equilibrium between the high and the low see how it's gravitating around that look at the difference how price comes back down into here so we've offered this by side then we offered this sell 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 well in the previous review and creates resistance here resistance once more multiple times resistance support support sweeps the stops rallies resistance support digs down one more time into it here and sends it higher post on from payroll data so I want you to think about how I taught the new week opening Gap and how we can use as many as many weeks and multiple months looking back 60 days the new day opening Gap sometimes may not actually form there may be very little separation between where we close at 5 pm and where we resume opening a new trading session at 6 pm this pattern that forms with this new day opening app 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 tick or like two ticks you know I'm I'm not terribly excited about that it can respect it but I generally don't like to see those types of new day opening gaps I prefer 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 like I just don't want it to be less than preferably it's got to be at least more than one handle so carrying the data forward and casting it throughout the entire week once that week closes I'm not interested in that new day opening Gap so in other words this has been utilized last week I'm not interested in these two levels now going into a new trading week so in my opinion in my own my own analysis the new day opening Gap I'm only 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 I'll extend that throughout 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 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 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 least for the week impactful support or resistance levels if you want to call it that it's like the idea that repricing to very specific PD arrays when it touches it it's not that it's touching here and acting as support to go higher it's going down and there's a Confluence between that old new day opening Gap low over here where it opens at 6 pm extending it forward what's also here a fair value Gap in the form of a buy side imbalanced outside and efficiency so from here to here and 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 a retouch to that new day opening Gap below find some support rallies up and it hits it one more time here taking out sell side one more time relative equal lows here what's below that sell side it digs below that during the London session on Friday rallies hits it as a high what do we have here low high lower low bullish breaker trades into it here after hitting that fair value Gap bullish breaker rallies and digs back into what the breaker but also respecting of the bodies didn't close below that new day opening top 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 swing so we dug down into this old new day opening Gap High allowed price to send it higher Fairway got order block and then starts to Rally new day opening gaps I like to see them act as a supporting factor or a resistance to an idea that I have already arrived at with other PD arrays or other analysis Concepts so it's not blindo it's not a Panacea it's just one of those things I like to add to and also if it hasn't already done this new day opening Gap repriced to the high of it here and this is reversed for when it gaps higher to same thing I'd like to see it trade up into and reprice that so this right here would be a really easy trade where we opened we trade down consolidate around the low of it with The Gap here so trading up to the high of that new day opening Gap would 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 a time of day where you can study or look for opportunities to tape read hope you found this one insightful and so I'll talk to you next time be safe