The weekly open as a reference

[Shadow Trader]

The price at which the week begins, the Sunday evening open, serves as a reference some traders watch closely. The thinking is that whether price trades above or below the weekly open indicates which side is in control for the week.

For scalpers, the weekly open acts like any other level: a place where price may pause, reverse or accelerate. Because it's one price per week, it stays on the chart for days, and orders accumulate around it.

A few notes:

1. Different brokers show slightly different open prices, since they start streaming quotes at different moments.

2. The first few minutes after the Sunday open can be erratic, so the real open may need to be defined as a price after the spreads settle.

3. Combining it with the daily open and previous high or low can mark zones of interest.

Does the weekly open appear on the chart, and how is the open price defined?