Incorporating the New York Midnight Open (NMO) into your premarket plan provides a structured reference point for anticipating intraday bias and identifying potential trend days. The NMO acts as a baseline for price delivery, helping determine whether the market is likely to trade at a premium or discount relative to that level.
PDH = Previous Day's High
PDL = Previous Day's Low
PDA = Premium and Discount Arrays as a guide to determine where to buy and sell
Previous
day highs and lows are critical liquidity references. They often serve
as targets for stop runs and can signal either continuation or reversal,
depending on the broader market context. When a clear directional bias
is present, priority should be given to these levels:
► In a bullish environment, monitor the previous day’s high for a potential raid on buy stops.
► In a bearish environment, focus on the previous day’s low for a sweep of sell stops.
► In a bearish environment, focus on the previous day’s low for a sweep of sell stops.
When price reaches these levels, the key is not the level itself, but the reaction:
► Look for signs of liquidity being taken (stop raid).
► Assess whether displacement follows, indicating a shift in order flow.
► If conditions align, refine entry using an optimal trade entry (OTE) framework.
► Assess whether displacement follows, indicating a shift in order flow.
► If conditions align, refine entry using an optimal trade entry (OTE) framework.
Not
all previous day highs and lows offer the same quality of setup.
High-probability conditions typically include confluence with time-based
models (e.g., Silver Bullet windows), proximity to the NMO, and
alignment with higher timeframe bias.
Understanding how and when the market raids liquidity above previous highs or below previous lows allows you to anticipate reversals or continuations with greater precision, rather than reacting to price after the move has already developed.
Understanding how and when the market raids liquidity above previous highs or below previous lows allows you to anticipate reversals or continuations with greater precision, rather than reacting to price after the move has already developed.
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