Opening Price Principle: Best Kept Secret on Wall Street

Discover the simple yet powerful secret that top traders quietly use every day: the Opening Price Principle. In this concise and practical guide, Larry Pesavento—renowned trader and market educator—reveals how the opening price holds predictive value for price behavior throughout the trading day.

Backed by decades of trading experience and computer studies, this book shows that the opening price is within 20% of the high or low of the day in nearly 70% of cases. With this knowledge, traders can position themselves early with greater confidence. The authors walk you through pattern recognition, Fibonacci setups, risk management, and real trade examples—all anchored around the importance of the day’s opening print.

Perfect for day traders and short-term swing traders, this book blends simplicity with effectiveness, showing how to “trade with the opening” rather than against it. It’s not about predicting the market—it’s about recognizing where it begins.

What You’ll Learn

• The Opening Price Principle: theory and statistical backing
• How to trade when the open is near the day’s high or low
• Patterns that complement the opening price: Fibonacci retracements, pennants, and more
• How to use protective stops and manage trade size
• Simple risk-reward strategies using real market examples
• Effective exit methods: scaling out, trailing stops, and time stops

Key Benefits

• Designed for traders with limited screen time
• Includes actionable examples and annotated charts
• Offers easy-to-follow trading routines and checklists
• Reinforces habits that build trader discipline and consistency
• Promotes a pattern-based approach with built-in risk control

Who This Book Is For

• Day traders and intraday traders looking for high-probability setups
• New and intermediate traders struggling with entries and exits
• Anyone interested in practical trading principles without complicated indicators
• Students of pattern recognition, Fibonacci ratios, or real-world technical analysis
• Readers of Larry Pesavento’s other books and trading materials

Table of Contents

1. Introduction: Why the Opening Price Matters
2. Background of the Principle and Historical Development
3. What Is the Opening Price Principle?
4. Three Ways to Test the Principle Yourself
5. Summary of Key Rules
6. Trading the Opening Price with Risk Control
7. Pattern Primer: Fibonacci Retracements, Bullish & Bearish Pennants
8. Risk Management with the Opening Price
9. Exit Strategies for Day Trades
10. Final Thoughts on Applying the Method