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Hi,
I was hoping to see if my thought process made sense with respect to how I am analyzing and trading the open.
The red line is yesterdays low. I went short with a stop order below bar 6, market was selling off from prior session at that resistence. Maybe an early high of the day double top which I had suspected as an option after looking at the daily chart. On bar 10, I place a buy stop one tick above that bar, big bull reversal bar so I thought its reasonable to exit if my buy stop was hit. My stop wasn't hit and I held short until bar 19.
On bar 19, I see that we have a bull buy signal bar looking to reverse up from yesterdays low. I place move my Buy stop one tick above it. However, I can also see a scenario where traders see a tight bear micro-channel and expect a 2nd leg. Sometimes I have conflicting ideas of whether or not to hold short for a swing down (expect a 2nd leg down as it's curling away from EMA) OR trade in a manner where I'm cautious at the open (strong breakout in opening range, 50% of the time it can reverse).
Is it reasonable to sell here or would you hold short instead?
Since I had sold in 19, would it have made sense to place a sell stop order below bar 23? Or would it had made sense to trade the breakout on bar 25 because on bar 23, it was following bull bars.
Thanks again.
