The opening 15-30 minutes contain more information than most traders extract from an entire session. The way the market opens tells you what dominant players are thinking.
Open Type 1: Open Drive
What: Market moves aggressively in one direction from the first tick. No looking back.
Meaning: Institutions have decided overnight. They're executing with urgency.
Action: Don't fight it. Enter on the first minor pullback. Opening price often becomes the day's high or low. Expect a Trend Day.
Open Type 2: Open Test Drive
What: Market tests one direction briefly, then reverses and drives the opposite way.
Meaning: Smart money is testing liquidity before committing. The initial move is a fake-out.
Action: Wait for reversal confirmation. Trade the reversal direction. Stop beyond the initial test extreme.
Open Type 3: Open Rejection Reverse
What: Market opens outside yesterday's range but quickly reverses back in.
Meaning: The overnight move was rejected. The gap auction failed.
Action: Trade the gap fill toward yesterday's POC. Watch for single prints in the gap area.
Open Type 4: Open Auction
What: Market opens and trades both directions without conviction.
Meaning: No one has decided yet. Both sides waiting for information.
Action: WAIT. Let the IB form completely. Then trade the IB breakout or fade IB extremes.
Quick Reference
| Open Type | Action | Expected Day |
|---|---|---|
| Open Drive | Trade immediately in drive direction | Trend Day |
| Open Test Drive | Wait for reversal, then trade | Normal Variation |
| Open Rejection Reverse | Trade the gap fill | Normal Day |
| Open Auction | Wait for IB, then decide | Any type |
AI-Powered Open Type Detection
SarthoAI identifies the open type within the first 15 minutes and updates you in real-time.
Get AI Open Type Alerts →