An open where an indicator may not be very useful.
However, it can be helpful by looking at the big picture. The chart below is a 5-minute SPY chart with 24-hour data. The settings for the top 3/10macd are such that it reflects a 15-minute chart, while the bottom 3/10macd reflects a 5-minute chart. The vertical dash line is the open of regular trading hours.
While on a chart which doesn't include the pre-market we had condition 1a. With the 1a criteria I'm looking to trade a breakout (base-break, etc). Again, not something that is hinted at on the 3/10macd because as we can see, the 5-minute macd pulled back well into 10am while price continued higher. While the 15-minute macd fast line moved lower throughout the day.
The overnight high came into play on a pullback in the morning, while the IB_high came into play late in the afternoon.
The daily showing us well back above the 20-day MA and approaching the top of the channel already. The faster time frame (130-min) showing a steep reverse divergence and looking a bit stretched.
The setups I include on this blog are used in conjunction with the 3/10macd and the criteria I ascribe to it as a way to alert me to an existing condition of price. The key concept to take away from this blog is that I try to anticipate what will happen on the higher time frame by using a faster time frame to trigger the trade setup. I do not trade a "system" I use two indicators to clue me in to price conditions. Please read the Disclaimer located in the sidebar of this site. I can be contacted via email at firstname.lastname@example.org
I am always open to questions, comments, or suggestions on how to improve this blog.