TDO & Hit Rates by Weekday (5 min)

How it works

The indicator captures the previous day's 23:00 CT close price as the True Day Open (TDO) and plots it as a continuous yellow line across the chart. During each New York trading session, it checks every 5-minute bar to see if the bar's high and low encompass the TDO level, effectively determining whether the TDO was 'hit'.

The signal classifies sessions based on whether they open above or below the TDO and tracks hit percentages for each weekday. It automatically updates in real time, providing a dynamic visualization of how often the market interacts with the previous day's closing price.

Why it may be useful

Understanding TDO interactions helps traders identify potential market behavior and intraday price dynamics. By tracking how often the market revisits the previous day's close, traders can gain insights into market sentiment and potential support/resistance levels.

The weekday-specific breakdown allows traders to recognize day-of-week patterns and develop more nuanced trading strategies. This analysis provides a statistical approach to understanding market movement, helping traders make more informed decisions about entry and exit points.

When to explore it

This indicator is most effective for day traders and scalpers who are interested in short-term price movements and market structure. It works best with futures markets, particularly during the New York trading session, and requires extended hours charting to capture the full TDO calculation.

Traders should use this signal in conjunction with other technical analysis tools to confirm potential trade setups. It is particularly useful for understanding market rhythms, identifying potential support and resistance levels, and developing a more comprehensive view of intraday price action.

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