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Open High/Low Predictors

Introduction

These scanners monitor large-cap stocks at the market open, noting their opening price. After the first 5-minute candle has formed, if the stock’s opening price was at the high for the first 5-minute candle, it is predicted to be a downtrend. If the opening price was at the low for the opening 5-minute candle, it is predicted to be in an uptrend.
Figure 1: The Open High/Low Prediction channels in Discord

Why was this tool built?

Famous trader and eccentric billionaire, Martin Zweig, has a well-known quote: "The trend is your friend." We wanted to build a way for traders to have an idea of which way the intraday trend would be headed within the first 5 minutes of market open.

What are the criteria to trigger an alert?

We scan across all large-cap stocks every morning.
Downtrend Prediction if: Opening price = high of 1st 5-minute candle
Uptrend Prediction if: Opening price = low of 1st 5-minute candle

The Results - Does it work?

Yes! Below is a ScaleTrade alert for McDonald’s stock (Ticker: MCD) with an opening price equal to the high of the first 5-minute candle, and it downtrended smoothly throughout the rest of the day.
Figure 2: MCD Downtrend Prediction

In conclusion…

  • This is another way we provide an edge to traders
  • This can help swing traders as well when monitoring setups
  • This can help day traders when evaluating overall trend against any trades they're currently in
You can try this out for free by joining our Project ScaleTrade Discord. Thanks so much for reading