What is the Midnight Opening Range?
"The algorithm absolutely uses that first 30 minutes and it does the same type of thing at midnight New York local time"
The Midnight Opening Range is a 30-minute interval that provides the foundational framework for daily price delivery. Just as the morning session has an algorithmic opening range from 9:30 to 10:00, the algorithm establishes a similar range at midnight.
"When I coded this algorithm I wanted to have the benefit of having the parameters of a daily high a daily low and that way I can find the plethora of setups between those two daily range extremes"
"The framework that you use around opening range gaps is derived by the midnight opening range that's the 12:00 to 12:30 eastern time before you even wake up to trade in New York session you should have at least referred back to that area of price action and carry forward that information"
Time Frame Definition
"You always have to set your charts to New York local time because everything runs by this algorithm on New York local time whatever it is in New York time that's what your chart should be set to so you can see everything based on algorithmic delivery anyone tells you other than that they don't know what they're talking about"
"There is absolutely I don't care who tells you what there's no other opening range except for that 30 minute interval... if it's less than 30 minutes it ain't algorithmic it's just somebody trying to make up something"
Three Reference Points
"The low and the high there's three reference points there that are very very crucial to me as a Trader"
Within the midnight opening range, three specific price levels provide the foundation for analysis:
"The opening price at midnight on this Candlestick... that's the midnight opening price for power three"
The highest price reached during the 30-minute interval between midnight and 12:30 Eastern time.
The lowest price reached during the 30-minute interval between midnight and 12:30 Eastern time.
Grading the Range
"We can grade it that means we do a run from low to high... and it'll allow us to see price runs and more specifically inside this range we're going to highlight that so that way we can project it throughout the entirety of the day and we'll see how that is influential with price action"
Within the range, you can identify:
- Lower Quadrant – The lower 25% of the range
- Consequent Encroachment – The midpoint (50%) of the range
- Upper Quadrant – The upper 25% of the range
First Presented Displacement
"This is first presented displacement... the displacement in and of itself is a PD array"
Within the midnight opening range, identify the first significant displacement – the candle or series of candles showing the largest degree of price movement.
"In this drop here from the high down to the low of the midnight opening range I want to look for inefficiencies order blocks Breakers any PD that I've taught in month four content"
"It's a very large one and it's occurring inside of the midnight opening range so it jumps off the chart it's the first presented displacement"
Volume Imbalance Consideration
"This candlestick's close the bottom end of the body basically that is lower in value than the opening price of that Candlestick so that's why I'm putting that shaded box on the wick of this candle... if there's a volume imbalance you have to make sure that you encapsulate the C or Bice balance so efficiency"
"The algorithm will refer back to that it'll go right back into that range"
Standard Deviations
"If the market trades above it then it can go one half of one standard deviation or one standard deviation so in other words the actual range from the high to low at range added to the high that's all it is so think like measured move"
Fibonacci Settings
"If we add things like negative .5 -1 things of that nature uh we can get projections that will take us above these relative equal highs"
Application to Range
"You're getting the range low of the midnight opening range at 30-minute interval between midnight and 12:30 Eastern certain time if the market trades above it then it can go one half of one standard deviation or one standard deviation"
Application to Displacement
"If we use the inefficiency we can do the same thing there... we can also get very very precise elements to how the algorithm will rebook and redeliver to premium and discount even inside of that midnight opening range"
"Look at this low 21,755.50... what's the value of the lower quadrant 21,755.50" – Demonstrating how the algorithm delivers price to exact levels derived from the midnight opening range displacement.
London Session Application
"How hard and fast it goes to that degree of Premium or discount is relative to an economic calendar event during London... so this is all help you trade London session that's what it's really based around"
The 3:30 Sweet Spot
"Go back through my Forex lectures I tell you very specifically at 3:30 that's your sweet spot"
"It delivers on 3:30 macro in London session"
"At 3:30 the market starts to run away from lower quadrant of the first was first displacement in the midnight opening range the market rallies aggressively"
Price Delivery to Displacement
"What time is that right there 329 in Forex I taught you The Sweet Spot for London session is exactly 330 and that's when the algorithm comes in fires off and what's it doing oh it's just randomly trading down into that first presented fair value Gap inside of the midnight opening range"
New York Session Application
"Notice how we traded up in the uh electronic trading hours right ahead of the New York opening bell at 9:30 see how the price trades up here... that's that negative one standard deviation on the midnight opening range"
Opening Price for Power 3
"We can say that right here that's the high of the day this Candlestick the open is here and one more time they pass back up into a premium we break lower"
"What's this dash line remember that that's midnight opening Price Power three"
Range Departure Signal
"Slices through the midnight opening range and look what it does it leaves it aggressively it's no longer interested in coming back to test it as a resistance or premium array that's what it's indicating the Market's extremely heavy so look for lower prices"
Volume Imbalance from Regular Trading Hours
"Having this reg training hours reference point that volume of balance and extending it forward and we're going into the 930 opening here the market takes a dive trades look where the bodies are... see how it's respecting that"
Chart Setup Requirements
Electronic Trading Hours
"The first thing you got to do is obviously find electronic trading hours... by having that you're going to be able to see basically you know Globex hours trading that means the off session or non-regular trading hours"
Step-by-Step Process
- "You're going to grab your vertical line here and you're going to find midnight"
- "And then find 12:30 on a one minute chart"
- Identify the opening price at midnight on the first candlestick
- Plot the highest high within the range
- Plot the lowest low within the range
- Identify the first presented displacement within the range
- Apply standard deviations using Fibonacci tool
"Always have to make sure that your chart is set to New York time don't care where you live geographically on this spinning rock that we call Earth you always have to set your charts to New York local time"
Regular Trading Hours Reference
"I want to refer back to a reference point that's found in regular trading hours... the opening price here and the difference between where we settled previous day at regular trading hours"
Study Flashcards
Click each card to reveal the answer (direct quotes from lecture)
"The 12:00 to 12:30 eastern time"
"You always have to set your charts to New York local time because everything runs by this algorithm on New York local time"
"The opening price at midnight on this Candlestick... the low and the high there's three reference points there that are very very crucial"
"I want to look for inefficiencies order blocks Breakers any PD that I've taught in month four content"
"At 3:30 that's your sweet spot... that's when the algorithm comes in fires off"
"The actual range from the high to low at range added to the high that's all it is so think like measured move"
"It leaves it aggressively it's no longer interested in coming back to test it as a resistance or premium array that's what it's indicating the Market's extremely heavy so look for lower prices"
"This is first presented displacement... the displacement in and of itself is a PD array... it's a very large one and it's occurring inside of the midnight opening range so it jumps off the chart"
"The algorithm will refer back to that it'll go right back into that range"
"If it's less than 30 minutes it ain't algorithmic it's just somebody trying to make up something"
"That's the midnight opening price for power three... power three is your daily range Candlestick formation"
"Before you even wake up to trade in New York session you should have at least referred back to that area of price action and carry forward that information"