What it means
The midnight open is the price at 00:00 New York time. In ICT teaching it is treated as the "true day open" for the trading day, rather than the broker's daily candle open.
It is used as an intraday equilibrium: below it is discount for the day, above it premium.
Why traders use it
In a bullish day, the idea is that price often trades below the midnight open first (manipulation) before rallying above it. Buying below the open in a bullish bias improves the entry location.
Chart examples
Buying below the midnight open on a bullish day
How to identify it objectively
- 1Mark the open price of the 00:00 New York candle.
- 2Extend it across the day.
- 3Note whether price is above (premium) or below (discount) the line.
- 4Combine with the daily bias.
Bullish use
- 1Daily bias bullish.
- 2Price trades below the midnight open.
- 3A bullish setup below the open targets the day's high.
Bearish use
- 1Daily bias bearish.
- 2Price trades above the midnight open.
- 3A bearish setup above the open targets the day's low.
What confirms it
- A clear reversal on the "wrong" side of the open.
- Agreement with daily bias.
What invalidates it
- Price trends away from the open without returning.
- Bias wrong for the day.
How a hypothetical setup is built
Entry
Below the midnight open, after a bullish confirmation close.
Stop
Below the low of the move under the open.
Target
The day's high or the previous day high.
A hypothetical illustration of how the concept is turned into a plan, not a recommendation. Practise it on a paper account first.
Related concepts
- ICT Sessions & ModelsPower of Three (AMD)
- ICT Sessions & ModelsJudas Swing
- Fair Value Gaps & Order BlocksPremium, Discount and Equilibrium
Historical testing
Not tested on The Tradeskill.
Limitations: when it fails
- Strong trend days never return to the open.
- The level depends on using New York time correctly.
- It is a reference, not a support or resistance by itself.
Knowledge check
Pick an answer to see the explanation. Nothing is saved.