Open = High / Low
Trades the first candle's direction on gap days. If the first 5-min candle's Open equals its High → sellers dominated from the open → SHORT. If Open equals Low → buyers dominated → LONG.
Checks if the first 5-min candle (9:15-9:20) has Open ≈ High (within 0.1%) or Open ≈ Low. Waits for the 2nd candle to confirm the direction before entering. Entry on 2nd candle close.
OHL works best on gap days where overnight sentiment sets the tone. 0.5% threshold filters quiet-day false signals better than 0.3%.
Strong body = conviction. 70% threshold filters ambiguous doji-like candles that the 50% threshold lets through.
Prevents entering on a single-candle fake-out. The 2nd candle proves the move has follow-through.
Buffer prevents stop-hunting by market makers who know where retail stops are placed.
VWAP acts as a magnet — price tends to revert to it. Using it as target improves hit rate.
Signal fires on 2nd candle. Invalid after 9:35 — the opening momentum has dissipated.
Gap days with strong first-candle conviction. Sector-wide moves. Earnings gap reactions. Days when the market opens and immediately trends.
Flat opens with no gap. Doji/spinning top first candles. News-driven reversals after open. Days when the gap fills immediately.