Why? Statistics show a 65-67% probability of retracing to the midnight open during this window.
Fridays: Risk or no trade days to maintain weekly momentum.
Approach: Capture 25 points per trade.
Psychological Discipline: Consistency over greed.
Midnight Open Line Strategy
Midnight Open Line: Key point of reference for trade decisions.
Below Midnight Open at 8:00 am: Look for Longs.
Above Midnight Open at 8:00 am: Look for Shorts.
Footprints and Market Context
Objective Buy/Sell Pressure: Indicated by Footprints on the chart.
Provide context on price movement: Where price is likely to react.
Simplifies trade decisions avoiding subjective elements like Far Value Gaps and Order Blocks.
Higher Time Frame Considerations
Mainly use the hourly time frame.
Look for continuity in market structure (bullish, bearish, consolidation).
Usage of last 170-180 days of data for distribution analysis.
Distribution Trades
Back-up trade when there isn’t a midnight open retracement opportunity.
Based on average movement on respective days (e.g., 1.15% on Fridays).
Capturing the first two distributions after the midnight open retracement
Key Insights on Trading Methodology
Data-Driven Approach: Use statistics to predict market behavior.
Footprints Analysis: Understand where objective pressure points lie.
Trade Small, Trade Consistent: Prefer 25 point trades and small gains over trying to capture entire moves.
Adapt Strategies: Align the strategy with current market climates.
Psychological and Strategic Discipline
Repetitive Learning: Stick to the process and don’t attempt to optimize endlessly.
Objectivity and Consistency: Show up every day with discipline, focus on long term results.
Avoid Overcomplicating: Stick to essential indicators (Footprints, Midnight Open line) and avoid excessive analysis (correlated assets, fair value gaps).
Operate Above Current Level: Trade with the mindset of handling larger funds and acting professionally.
Conclusion and Summary of Steps
Determine Midnight Open Position: Above for shorts, below for longs.
Identify Relevant Footprints: Closely related to the Midnight Open position.
Use Distributions Information: Average percentage distribution for the specific day.
Keep Strategy and Goals Consistent: Stick to process, don't get greedy or try capturing too big moves.
Maintain Proper Mindset: Think and act as if managing substantial funds, focus on growing through disciplined and repetitive actions.
Final Note
Treat Trading as a Business: Maintain rationality. Losses are business expenses, and winning comes from a consistent strategy.
Take Time Off: Appreciate the autonomy trading offers, like taking an extended weekend when it fits.