Open Drive Setup

Whether you're a new trader or an experienced one, finding the right setup is crucial to consistent profitability in the stock market. One of the most reliable setups, based on the Central Pivot Range (CPR) indicator, is the Open Drive. Today, I want to share how this setup works, how accurate it can be, and how I recently used it to earn a profit.

Understanding the Open Drive Setup

The Open Drive setup is simple yet powerful. It relies on the relationship between the weekly and daily CPR levels. In this setup, the weekly CPR is positioned above the daily CPR. This alignment signals potential bearish momentum, and as traders, we can leverage this to make profitable trades.

                             How the Setup Works

1. Check the CPR Alignment: Ensure that the weekly CPR is above the daily CPR.
2. Monitor the 5-Minute Candles: Focus on the 5-minute chart. If the first one or two candles after the market opens cross below the daily CPR, this is a strong signal to enter a short position.
3. Entry Point: As soon as you spot the cross, you should enter a short position.
4. Target Profit: Your target should be set at the next support level, typically S2. The setup often allows you to reach this target with ease, as the bearish momentum tends to be strong.
5. Profit Booking: Once the price approaches S2, book your profits. If you want to maximize your gains, you can add to your position or consider buying a put option, particularly if a bearish pattern is evident.

Why the Open Drive Setup Is Effective

The effectiveness of the Open Drive setup lies in its simplicity and the clear signals it provides. By aligning your trades with the CPR levels, you’re trading with the prevailing market momentum, increasing your chances of success. The setup is particularly useful in intraday trading, where quick decisions and fast execution are crucial.

My Recent Trade Using the Open Drive Setup

Today, I applied the Open Drive setup, and it worked like a charm. I entered a short position as the 5-minute candles crossed below the daily CPR, and I set my target at S2. The market followed through perfectly, hitting my target and allowing me to book a satisfying profit.

The Open Drive setup, based on the CPR indicator, is an excellent strategy for traders looking to make quick, profitable trades. Its simplicity makes it accessible to both new and experienced traders, while its accuracy can help you achieve consistent profits. Give this setup a try in your next trading session and see how it works for you! Also Visit our Website to learn more on Trading. Use coupon code ANALYSIS3 to enroll in our courses for trading with simple indicator.