In this book, two veteran traders with more than 50 years of combined trading experience reveal a startling new secret about the way markets behave. There is an amazingly reliable relationship between the opening price and the high and low price range for the entire day. This relationship, like many other principles of technical analysis, applies to all actively traded markets, which includes various futures markets, indices and individual stocks. This book reveals this relationship, illustrates it with many detailed charts and shows the reader in great detail how it might be used to trade effectively and profitably.

The authors have developed their own method for taking advantage of this relationship and show how they use it in their own daily trading. This book will prove to be of interest and value to day traders in individual stocks or in futures markets. The principle and the trading method work equally well in all liquid markets.

In evaluating books that offer advice to traders, especially a system or method, one should, in this writer’s opinion, place more value on those authored by actual traders, who “put their money where their mouth is,” in contrast to those authored by researchers or academicians, who have not actually put their theories to the test in the very real world of day-to-day trading. The authors of The Opening Price Principle are eminently qualified to offer advice to traders, because, for years, with highly successful results they have actually traded the principle and method they teach in their book.

Author Larry Pesavento has a most impressive list of qualifications: He is a well known trading mentor who has trained hundreds of traders, the author of six books on various aspects of trading, a 30-year veteran trader on the Chicago Mercantile Exchange and currently a contract trader for a large hedge fund.

Co-author, Peggy Mackay, has longstanding experience on the institutional desk of a large Canadian broker, is an avid student of the markets and trading and, for the past six years, has traded her own private account. The combined market knowledge and savvy that they offer their readers in this new book represents a valuable contribution to trading literature.

The principle this book teaches is not entirely esoteric, but it is generally not common knowledge and, I would wager, is familiar only to the most seasoned and knowledgeable of traders. Even those who are familiar with this principle have likely not seen before the specific method taught in this book, one that reveals how to use this knowledge to their trading advantage.

Pesavento and Mackay represent themselves as pattern recognition traders and state that the intraday patterns that are the cornerstone of their day trading methodology are present in all liquid markets. They illustrate, through numerous charted examples, exactly how they trade including, not only precise entry, but also exit strategies.

The Opening Price Principle is intended as a workbook to be referred to frequently by their trading students, not just a book that is read once and then relegated to obscurity on the bookshelf. It is clearly written and explained and leaves no room for doubt in the mind of the reader as to how to use the knowledge gained from it.

While all the examples use individual stocks, the authors make clear that the principles may be used in any active market, including futures and indices.

I highly recommend this book to day traders in stocks, indices and futures markets. In addition to being clearly written and well illustrated, it presents a unique approach to day trading that has never been presented in any of the many books previously published on the subject.