Quote from tomahawk:
Just curious ... have you changed your mind about liking the ORB trade when there's a tall opening bar? (was 6 points yesterday).
I'd been watching the pre-market action for a good 2 hours before the open and saw a lot of indecision, BUT a strong support zone established around @ 75. I sold short not long before the open because I liked how previous support (around the 81 zone from a few days back) had become resistance. I find that to be a good short signal. And I thought the slightly lower high might result in a retest of 75 at the open and possibly a breakdown to the overnight pivot low @ 67. I exited on the pivot off a higher low because higher lows invalidate short setups IMHO.
The sheer buying strength at the open placed me in a long mood. Black Friday, you know, and stocks were on sale
I always wait for a pullback and higher low when that opening bar is large, but that never really transpired. Price just rode above the upper channel line the way only a strong trend can! I had a bunch of tasks distracting me and before I knew it price had run above 90 and my "too high to buy" mentality kicked in.
Now if I was BigHog, I couldn't have cared less about news, fear, channel lines, MACD, Elliot Waves, bar size, or the number of moons in Uranus. I would've simply had my buy stop in place at (I think) around 86 and enjoyed a perfect stress-free trade.
So this was a case where waiting for confirmation was no help at all to me.