In the previous lesson, we introduced the "Session Open Strategy" that utilizes the start times of each trading session.

This time, we will take it a step further and introduce a strategy that uses the most watched price level on a daily basis, the Daily Open. trading strategy.

1. What is the Daily Open?

The Daily Open refers to the price at which one day ends and the next day begins.
In the FX market, the close time of the New York session (5:00 PM NY time) is treated as the practical Daily Open.

This price is strongly watched by many traders as the starting point for taking new positions, and often serves as a turning point in market psychology.

2. How to Use the Daily Open to Identify Support and Resistance

• After the Daily Open, if the price moves Up, that opening price is likely to function as a support line.
  
  

• After the Daily Open, if the price moves Down, that opening price is likely to function as a resistance line.
  
  

In either case, it is important to observe rebounds or breakouts when the price returns to this line.

3. Practical Use and Cautions

• When using the Daily Open, observe about 1–3 candlesticks to confirm the day's initial direction
  
  

• Afterward, when the price returns near the Daily Open, combine with other strategies to make entry decisions.
  
  

Note that this strategy is not used for standalone trades.
In my case, it is used merely as a confirming element to supplement other strategies (volume profile and price action).

✅Summary

The Daily Open is a key point where trader psychology resets and serves as a highly reliable reference for determining support and resistance.

In the next lesson, we will explain in detail a broader view of the market using the strategy that utilizes the high and low of the previous day and the previous week.