Prior-day candles, open confirmation, and same-session stops

A prior-session read for the next open

Open-high-low-close formations, read over a few prior sessions, turn a repeatable chart condition into a directional hypothesis for the next session. A few prior sessions of open, high, low, and close are treated as enough history for that read.

A candle body maps open-to-close movement. Wicks map the session extremes. A rising session is drawn differently from a declining one, and equal open and close leave no body.

Multi-candle combinations are grouped as reversal or continuation setups. A bullish pattern typically has a bearish inverse. The read is taken from the prior session so it can speak to today and sometimes the next session.

From a short list to two candidates

Pattern screening is meant to reduce a universe of about 30 names to at most two same-day candidates, each with a pre-stated likely direction.

Four states after the open

A single testable procedure then uses the prior-day pattern, post-open stock and index behavior, and a short holding window to decide enter, wait, or stand aside.

Whether the forecast is live is checked in the first 15 to 30 minutes after the open by scoring two binaries: the stock with or against the forecast, and a related market index with or against it. That scoring produces four states.

Both the stock and the index confirming the forecast authorizes a position regardless of the print. Both moving against the forecast requires standing aside even if the name later reverses.

If only one of the stock or the index confirms, a position is allowed only when the stock begins to trend in the forecast direction within 30 minutes of the open. When the index disagrees, the stock must also be near the prior close.

Continuation stays inside a short window

A reversal that behaves as expected can be followed with continuation patterns on the same name for two or three sessions.

Overnight holding is treated as extra risk because corporate announcements often arrive after the close and economic releases often arrive before the next open. The procedure aims to be flat by the session's end.

Trail the open position, then flatten

The usual exit is a pre-placed, periodically advanced stop that bounds a loss or locks an open gain before overnight news can change the exposure. In this workflow the stop is tight, typically a quarter of a currency unit from the open position, and it is advanced on each same-size favorable move.

Remaining or sideways positions are closed at least 30 minutes before the close, or earlier if the market reverses.