13 – Why Open and Opening Types are not important?

What are Open and Opening types in Market Profile? #

Market Profile gives you a way to identify what the markets are trying to do right at the open and during the first hour of trading. Usually, volatility is high during this period and naturally, it attracts retail traders.

That is precisely what the smart money wants. So that they can trap retail traders and effect an inventory transfer. Trap retail traders into bad trades and out of good ones.

Different Market Profile Open and opening types #

Open Types In Market Profile #

  • Open In Range
  • Open Outside Range

Opening Types In Market Profile #

  • Open Drive
  • Open Test Drive
  • Open Rejection Reverse
  • Open Auction

Why they are not important? #

The biggest reason I am against these open and opening types is that they create bias. Many mentors have made bold claims that these open and opening types are all you need to know to learn and trade using market profile. I humbly beg to differ…,

The reason is these open and opening types will make you think about the market in a certain way and if markets decide to take a different route you won’t be able to adjust on the fly. Having a rigid opinion in the markets is a death knell for retail traders.

How you should trade the open and opening using market profile? #

The correct way is to moitor how the makrte trades during the first hour.

  • Which references does it respect?
  • Which references it doesn’t?
  • Where does it trade with respect to the prior day’s range and value area?
  • Is the initial balance too wide or narrow? and on and on…

Answering the above questions will give you a much better idea as to what the markets are trying to do.

If you still want to learn more about these open and opening types then check out the free Market Profile Glossary I have created for you. Signup below to get the glossary PDF…