At-a-Glance Levels

Classify the trading day — quick guide for beginners

Knowing the day type early helps you pick the right strategy: fade on choppy days, trend-follow on volatile days, and use spreads or small size on mixed/news days.

Simple pre-open checks (do these first)

• Gap size: big gap → possible trend; small gap → likely chop.
• Pre-market volume: heavy and one-sided → continuation bias; thin → false breaks.
• News: major headlines → higher odds of volatility.
• Correlated markets: bonds, oil, FX aligned with equities → directional day.

First 15 minutes checks

• Open auction: clean one-sided auction + follow-through → trending; repeated rejections → choppy.
• VWAP action: price runs away from VWAP → trend; price crossing VWAP repeatedly → mean reversion.
• Open range vs ATR: open range large vs ATR → favor momentum; small → favor range trades.

Fast decision rules

• If 3+ trending signals → use breakout/momentum play with trailing stop.
• If 3+ non-trending signals → use small targets, fade to VWAP/open range.
• If mixed or headline-driven → cut size, use same‑day options or trade spreads.

Beginner checklist (60 seconds)

1. Gap: big / small.
2. Pre-market volume: heavy / thin.
3. News present: yes / no.
4. First 15 min: follow-through / oscillation.
5. If majority = trend → trend plan. If majority = chop → fade plan.

Start small, follow these checks every morning, and track which signals worked so you can refine thresholds over time.