Daily open pullback
Uses a fixed daily open as context for a directional pullback hypothesis.
Keep the chart simple
What needs to be in place first
- Broker day boundary is fixed
- Directional state is independently defined
- Price has moved a minimum distance before pulling back
See daily open pullback from both sides
Choose a direction and follow the chart from setup to entry, stop and planned exit. The method stays the same; only the directional comparisons reverse.
Entry is above the trigger, invalidation is below the setup and a profit exit is above the entry.
- EEntryLONG ENTRY / NEXT H1 OPEN
- SStop / risk limitLONG STOP / PULLBACK BUFFER
- TTargetLONG TARGET / IMPULSE HIGH
The 00:00 UTC open anchors the session. The completed upward impulse freezes its high and 25%–50% pullback zone; a later zone candle holds above the open and closes through the prior H1 high before next-open entry.
A new impulse high before entry invalidates the frozen measurement; it is not permission to redraw a more convenient long zone.Check the market first
Long: impulse closes at least 0.75 ATR above the daily open and no H1 candle has closed below the open; reverse for short.
Wait for the entry rule
Enter at next H1 open after a pullback-zone candle closes in the impulse direction beyond the prior H1 high/low.
Place the stop before entry
Stop 0.15 × ATR beyond the pullback extreme. Risk 0.50% equity and round down to 0.01 lot.
Know how the trade ends
Target the frozen impulse extreme. Close any unresolved trade at 20:00 UTC.
Worked example: UTC daily-open impulse pullback
This version of Daily open pullback chooses one answer for every decision so you can repeat it. Treat the settings as a starting point to test, not as proven or recommended parameters.
EUR/USD and GBP/USD H1 UTC candles; current-day open is the 00:00 UTC H1 open.
Signals may occur from 06:00 through 15:00 UTC and all positions close by 20:00 UTC.
Long and short rules mirror around the frozen daily open.
Plot the 00:00 UTC daily open and Wilder ATR(14) on H1.
Define the initial impulse as a completed close at least 0.75 × ATR away from the open before 12:00 UTC.
After an impulse, freeze its extreme and define the pullback zone from 0.25 to 0.50 of the distance between daily open and impulse extreme.
Give every tool one job
Direction, timing, volatility and risk are different questions. This stack assigns them rather than asking one indicator to do everything.
Provides a reproducible anchor, not a prediction or universal broker day.
Defines direction, retracement zone, trigger and target from price.
Normalises minimum impulse, stop buffer and gap cancellation.
- Long: impulse closes at least 0.75 ATR above the daily open and no H1 candle has closed below the open; reverse for short.
- A later candle trades into the frozen 25%–50% pullback zone without closing through the daily open.
- The next event blackout is clear and at least 1.5R remains to the impulse extreme.
Enter at next H1 open after a pullback-zone candle closes in the impulse direction beyond the prior H1 high/low.
Stop 0.15 × ATR beyond the pullback extreme. Risk 0.50% equity and round down to 0.01 lot.
Target the frozen impulse extreme. Close any unresolved trade at 20:00 UTC.
Cancel at 15:00 without a trigger, on a close through the daily open, after a new impulse extreme changes the frozen measurement, on event failure, or when next-open gap exceeds 0.25 ATR.
Use a constant 1.0-pip spread, 0.1-pip adverse slippage per fill, zero commission and no rollover because all trades close by 20:00 UTC.
Move through the chart one decision at a time
- 00:00: anchor
Freeze EUR/USD daily open at 1.0800. H1 ATR(14) is 40 pips.
- 08:00: impulse qualifies
A completed bar closes at 1.0832, more than 30 pips above the open, and the impulse high is frozen at 1.0840.
- 08:00: define zone
The 40-pip open-to-high move creates a long pullback zone from 1.0820 to 1.0830.
- 10:00: pullback
Price trades to 1.0822 and holds above the daily open; the following close exceeds the prior H1 high in the impulse direction.
- Next bar: enter
Enter next open, stop 0.15 ATR below the pullback low and verify that the 1.0840 target offers at least 1.5R.
- By 20:00: resolve
Exit at the frozen impulse high, stop or 20:00 deadline; do not move the target to a later high.
A rejected example
Reject a pullback that looks tidy but occurs after price has already extended the frozen impulse high. The original zone and target are stale under this method.
Common variations
- Separate variant only: New York 17:00 day boundary.
- Separate variant only: 50%–75% pullback zone.
- Separate variant only: fixed 2R target instead of the impulse extreme.
Rebuild this method on the platform you use
The written rules work independently of the charting app. Match the same feed, timeframe, indicator settings and completed-candle timing before comparing results.
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Keep every test organised.
The CSV gives you one place to record the setup, costs, execution, outcome and whether you followed your rules.
Download test-plan CSV ↓