Midnight Opening Price Ideology: USD/CAD Example
Hello Traders!
Midnight Opening Price is a great concept to understand price action from a smart money perspective.
Here I am showing this weeks price action and we can see the market was overall trending bullish after a HTF liquidity pool was taken.
When the markets are Bearish:
Seek to sell above M.O.P
The high of the day is most likely going to form in the London Open Session.
Look to exit or scale out your trades taken around 12:00 PM NY EST.
Why Sell above M.O.P?
The markets are seeking the higher price before distributing lower. Midnight Opening Price is consider to be Fair Value to the Forex Algorithm. Anything above M.O.P is going to be a Premium or overbought. Market are more likely to sponsor their sells within a premium not discount.
Still do not understand? Take this analogy as comparison:
You are business owner and you brought goods at wholesale price at a vendor for $100
You can sell these back to customers for $100 (fair value) or twice as much ($200)
Are you looking to breakeven or make profit?
Midnight Opening Price is a great concept to understand price action from a smart money perspective.
Here I am showing this weeks price action and we can see the market was overall trending bullish after a HTF liquidity pool was taken.
When the markets are Bearish:
Seek to sell above M.O.P
The high of the day is most likely going to form in the London Open Session.
Look to exit or scale out your trades taken around 12:00 PM NY EST.
Why Sell above M.O.P?
The markets are seeking the higher price before distributing lower. Midnight Opening Price is consider to be Fair Value to the Forex Algorithm. Anything above M.O.P is going to be a Premium or overbought. Market are more likely to sponsor their sells within a premium not discount.
Still do not understand? Take this analogy as comparison:
You are business owner and you brought goods at wholesale price at a vendor for $100
You can sell these back to customers for $100 (fair value) or twice as much ($200)
Are you looking to breakeven or make profit?
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