What it means
On a bullish day the manipulation usually dips below the open before the rally.
In practice
The idea describes how a typical trending day or week unfolds. Price first moves sideways around the open, then makes a false move that traps traders and collects stops, and finally makes the real move in the opposite direction.
Traders use it with a higher-timeframe bias: if the day is expected to close higher, a drop below the opening price is treated as the manipulation and as a chance to buy.
What to watch for
It describes trending days. On range days, and in hindsight, almost any move can be labelled as one of the three phases, so the bias and the levels must be decided beforehand.
Related terms
3 terms- Judas swingThe early false move of the session, against the day's real direction, that runs stops before reversing.
- Wyckoff methodRichard Wyckoff's early 1900s model of accumulation and distribution ranges; his spring is SMC's liquidity sweep.
- Midnight openThe price at 12:00 am New York time, which ICT treats as the start of the trading day.