Understanding the Bearish Opening Power Bar Alert

The opening power bar alerts implement a simple but popular trading strategy. They start by looking for a power bar in the stock's first 5 minute candle. To confirm this, the market as a whole needs to have a matching pattern in the first 5 minutes. We report a bearish alert when the price moves one tick below the low of the opening candle.

A power bar is defined as a large candle, where the open is near the high or or the low, and so is the close. The position of the close says whether the bar is bullish or bearish. This sets the direction for the entire strategy.

A special thanks to our friend Oliver Velez for sharing this strategy. He teaches this strategy under the title "the five minute trader".

Default Settings

By default, this alert is triggered when the price moves one tick below the low of the opening candle. To align with each alert, it's essential to utilize the corresponding time frame on the chart. For instance, this alert is visualized on the 5-minute candlestick chart.

Description Column

The description column of this scan will guide you in determining the optimal placement for your stop loss.