Daily Open Percentage
- Indicators
- Version: 1.6
- Activations: 5
Daily Open Percentage Index
The Daily Open Percentage Index is an indicator developed to identify price levels based on the asset's daily open, creating a fixed percentage grid that accompanies the entire trading session. From the daily open price, the indicator automatically draws a central line and several lines above and below this level, forming statistical support and resistance regions.
The central line represents the daily open price and remains drawn from the beginning to the end of the session. From it, the indicator calculates upper and lower percentage levels, allowing the trader to quickly visualize where the market is relative to the open price.
These regions serve as important references for market flow. In many cases, they act as price reaction points where momentum decelerates, profit-taking occurs, trends continue, or even reversals happen. For this reason, the indicator is an excellent tool for traders doing scalp, day trade, and short-term operations.
It is important to emphasize that no level should be used in isolation. The ideal approach is to combine the Daily Open Percentage Index with context analysis, order flow, volume, price action, or any other methodology used by the operator. The higher the confluence between different factors, the higher the quality of the trade tends to be.
During a strong trend, price may cross several percentage levels before finding a region of equilibrium. In rangebound markets, on the other hand, these lines frequently act as support and resistance zones, offering excellent opportunities for quick trades.
Recommended Settings by Market
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Recommended Timeframe: The indicator is recommended for timeframes of 15 minutes or lower (e.g., M15, M10, M5, M4, M3, M2, and M1). It was designed and optimized for short-term trading and scalping on these timeframes.
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Forex Market (Currencies): 0.25% between each percentage level is recommended. This setting usually better tracks the volatility of major currency pairs.
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Metals, Cryptocurrencies, Commodities, and Indices: 0.50% between each level is recommended. This setting offers an excellent balance between sensitivity and noise filtering.
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Crude Oil: 1.00% between each level is recommended, adjusted for the characteristic volatility of the commodity.
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Stocks / Equities: 1.00% between each level is most recommended. For more volatile stocks, 1.50% can be used. The choice should be made observing the volatility of each asset.
Note: As a general reference, it is recommended not to exceed 1.50% in daily settings.
Key Features and Applications
The main advantage of the Daily Open Percentage Index is its simplicity. In a few seconds, the trader can visualize the entire daily percentage structure without performing manual calculations.
Furthermore, since all levels are calculated from the session open, the indicator provides an objective and standardized reference, facilitating market reading throughout trading hours.
Levels can be used for:
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Identification of potential scalp regions;
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Location of probable support and resistance zones;
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Identification of potential short-term reversal points;
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Definition of partial and final targets;
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Risk management;
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Assessment of movement strength relative to the open price.
Final Considerations
Remember that percentage levels represent zones of interest, not guaranteed reversals. The market may respect a given level, break through it, or use it merely as an acceleration point. Therefore, confirmation through price action is always recommended before making a decision.
The Daily Open Percentage Index was developed to offer traders a clear view of daily price percentage distribution, making it easier to identify key market regions and aiding objective, disciplined decision-making. When used within a consistent risk management plan combined with good market context reading, it becomes an extremely useful tool for high-precision trading.
