Once again I've reviewed the great technical trading book by Toby Crabel "Day Trading with Short Term Price Patterns and Opening Range Breakout" Traders Press Inc. 1990. In the book, he looks at opening prices instead of Arther Merrill's work on the Dow Jones Industrial Index which looked at volume and closing prices for patterns. Mr. Crabel found that looking at and utilizing "Opening" price patterns and not including volume in his calculations provided him a better return than through Merrill's research.
In my work to develop FOREX based robotic trading Expert Advisers, I found that the utilization of using the closing price on some of the indicators caused too much volatility in the operations of that robotic trader. Like Crabel, I found that using the Opening Price in the FOREX market in some instances provided much better indication of direction and helped to make better decisions regarding entry and exit positions in my advanced FOREX tactics or FX Strategies if you will, both in manually taking a trade and through my robotic trading systems.
When you're setting up your trading screen, check some of your indicator positions using the open price instead of the close price. You may find better results. Email me if you have any questions.
Happy Trading, use good money management of course.
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