Market bias. How the opening price determines who controls the market.
Hello Traders,
There are countless complicated ways people try to define market bias — liquidity, fair value gaps, order blocks, and everything in between.
But one of the simplest and most effective ways to understand who is in control is the opening price.
The open is the starting point of the auction. From there, price reveals which side is in control.
If the market continues to trade below the daily open, sellers are in control of that session.
If the market continues to trade above the weekly open, buyers are in control of that timeframe.
The best trades usually come when these opening prices align.
When price is above the daily open and above the weekly open, the market is often positioned for expansion higher.
When price is below both, the path of least resistance is often lower.
When those timeframes are not aligned, the market tends to become far less clean. That is where you often see chop, rotation, and false moves.
The opening price is not just another line on the chart.
It is one of the clearest references for market control.
I have attached three images for you to study how price reacts relative to the opening price levels.
Trade wisely
