# 2# Open Day Trading System

Setup

1. Open a 1 hour chart at 1:59 EST (GMT-5) and identify the high

and low of the 1:00-2:00 EST bar, see the example below:

Forex Indicator
i-Levels_RS.rar
compressed file archive 1.5 KB

The system works on the principle that once a breakout occurs (intraday breakout),

the price is most likely to go strongly in the direction of the

intraday breakout due to the market daily activity after 2:00AM EST.

2) Determine the 1:00-2:00AM EST bar high and low:

High and Low 1:00 AM= 1,4172 high and 1,4157 low

The formula is

1:00-2:00AM bar high/low difference = X

In our case high = 15 pips =X

Long Entry Position for intraday breakout:

Place a BUY STOP order at “1:00-2:00AM EST bar HIGH + X”

level.

In our case the BUY STOP order is 1.4172 + 15 = 1,4187

A stop loss order should be placed at the 1:00-2:00AM EST bar

HIGH. In our case the Stop Loss = 1.4157

Take Profit: (for a buy order)

Option I ( profit 10 pips )

Take profit for a BUY order should be placed at your entry +10

pips. In our case 1,4187 + 10 = 1,4197

Option II ( profit 10 - 100 pips )

still recommend Option I – 10 pips)

Use a trailing stop = 10-20 pips to maximize your profit. In most

cases you will make 50-100 pips profit in a strong market.

SELL order position for intraday breakout:

Place a SELL STOP order at the “1:00-2:00AM EST bar LOW - X”

level.

In our case the SELL STOP order 1.4157 - 15 = 1,4142

Stop loss order should be placed at the 1:00-2:00AM EST bar

LOW. In our example the Stop Loss = 1,4172

Take Profit: (for a sell order)

Option I (profit 10 pips)

Take profit for a SELL order should be placed at the entry - 10

pips. In our case 1,4142 - 10 = 1,4132

Option II ( profit 10 - 100 pips )

Use a trailing stop = 10-20 pips to maximize your profit ( as

explained for a buy order ).