Video: MY 20-MINUTE MARKET OPEN TRADING STRATEGY
Creator: Oliver Velez Trading
Original Video: Watch the original video
Difficulty: Advanced
The Big Idea
Oliver Velez organizes opening trades around market state, price position, a defined power event, protection, and subsequent management. His main chart is two minutes with 20- and 200-period simple moving averages. The first twenty minutes are his preferred working window, not a guarantee that income or a valid opportunity appears on schedule.
The source repeatedly illustrates successful trades and promises substantial improvement. Those claims are not established by a complete sample in the transcript. Treat the sequence as a framework to formalize rather than evidence of assured profitability.
Three States Before an Entry
| State | Source description | Research question |
|---|---|---|
| Narrow | 20 and 200 are relatively close and flat or wavy. | What objective spacing and slope qualify? |
| Trending | The 20 moves away from a relatively flat 200 while price follows. | Is separation developing without an excessive chase? |
| Wide | The averages and sometimes price become strongly separated. | Has the continuation model become extended? |
The bullish “picture of power” is rising price above a rising 20 SMA, above a relatively flat 200. The bearish version reverses those relationships. These are price-derived classifications, not proof of which participants control the market.
Screen angles such as 45 degrees change with chart zoom and axis scaling. Measure slope in price, percentage, or ATR units if testing. The claim that one visual angle produces the most sustainable trend is not quantitatively demonstrated here.
Position Is Different From State
The source distinguishes positions one and two, relatively near the relevant averages, from position three, too far away. A narrow pair of averages can coexist with an opening price already extended from them. Conversely, an attractive color change can appear too late in a wide state.
The transcript does not assign numerical distance boundaries to these positions. If constructing a test, choose and disclose those thresholds before inspecting outcomes. Do not classify a winner as position two and an identical losing distance as position three afterward.
The Eight-Part Decision Sequence
- State: classify narrow, developing trend, or wide.
- Position: locate price relative to that state.
- Power and entry: identify an elephant-style body, a tail event, or a qualifying color change.
- Protection: define the invalidation and size before execution.
- Color-change add: consider additional exposure only if a valid event occurs in an acceptable position.
- Profit-taking: reduce exposure according to a documented rule.
- Entry-level protection on the remainder: reassess the stop as described by the management policy.
- Runner: retain only the planned remaining quantity under an explicit exit rule.
The creator varies the exact wording during repeated demonstrations. The key is the ordered decision process. An add is conditional: if the next color change is already in position three, he passes. If no valid add appears, the trade can proceed directly to profit-taking rather than forcing every action.
Color Change: Actual Versus Hidden
An actual bullish color change takes out a preceding red bar; the bearish version takes out green. The source acts near the 20 when the state supports continuation. He distinguishes anticipating within a developing power bar from entering above a completed bar for confirmation.
A hidden color change occurs inside one candle: price initially travels one way, then erases that movement and moves in the opposite direction. Completed OHLC does not reliably reveal that entire sequence or the timing of the entry. A backtest that uses the final high, low, and color to simulate an earlier entry risks hindsight.
For research, separate a completed-bar model from an intrabar model using appropriate finer data. Neither should claim to reproduce the other’s fills. The source’s exact “enough power” and near-average judgments remain partly discretionary.
Adding Changes the Exposure
In an original long example, buy 100 shares at $50.00 with a $49.80 stop: $20 nominal price risk. Add 50 at $50.30 while leaving that stop unchanged. The new shares add $25 of downside, raising combined risk to $45 before costs.
The weighted entry is $50.10. A stop moved to the original $50.00 entry is not the combined position’s breakeven: the added shares would lose $15. Fees and slippage also prevent an entry-price stop from making any position literally risk-free.
When taking partials, record which exposure remains and its weighted entry. A visual chart arrow does not capture the economics of several additions and exits. Restrict aggregate risk instead of evaluating each new lot in isolation.
Make Profit-Taking Testable
The source wants profits taken away from the add and sometimes leaves a runner. The transcript does not supply one universal numerical target, partial percentage, and runner exit for every example. Those must be written before evaluating results.
Compare a single entry and fixed exit against a separately specified add-and-partial policy under equal maximum planned risk. Also compare early developing-bar entries with completed-bar confirmation, including missed moves and higher execution costs around the open.
Track first-twenty-minute candidates, not just completed winners. If no valid state-position-event combination appears, the clock does not create a trade. A rule ending entries at twenty minutes is also distinct from a rule flattening all positions then.
Final Takeaway
Use state and position to qualify a power event, then follow a predetermined exposure and management plan. Keep adds optional, evaluate the combined risk, and distinguish observable completed-bar decisions from hidden intrabar events.
Risk Disclosure
This article is educational, not financial advice or a recommendation to trade or buy a service. Trading can cause substantial losses, particularly with leverage. Stops and limits do not guarantee fills or prices. Hypothetical examples and backtests depend on data, timing, costs, spreads, slippage, liquidity, gaps, market conditions, and discretionary assumptions. Historical performance does not guarantee future outcomes. Validate the risk controls and execution assumptions before considering live use.
CandleChasers independently interprets this source and is not affiliated with or endorsed by Oliver Velez Trading. Source income and probability claims belong to the creator; the numerical examples and testing framework are CandleChasers’ own educational work.