Fiary Four Price Strategy
Classic Intraday Breakout System
The Fiary Four Price system is a high-velocity intraday breakout strategy that focuses on four key price levels: Yesterday's High, Low, and Close, along with Today's Open. By identifying the range established by these levels, the system captures explosive intraday momentum when price breaks beyond the "gravity zone" of the previous day's action. — Fiary Logic
Esta estrategia se proporciona como un ejemplo educativo inspirado en conceptos de análisis técnico públicos comunes y material de referencia. Es solo para investigación y demostración de productos y no constituye asesoramiento de inversión.
Strategy Suitability
RISK: MEDIUM
✅ Best For
❌ Avoid In
This is a high-velocity breakout system. Ensure tight stop-losses are used as false breakouts at the "Four Price" levels can lead to rapid reversals.
Q: How do the four price levels determine the daily bias?
The relationship between Yesterday's High, Low, Close, and Today's Open defines the "gravity zone." A breakout above the highest of these or below the lowest of these signals that new market sentiment is overriding the previous day's structure.
Q: Why is Today's Open included in the calculation?
Today's Open reflects the immediate market reaction to overnight news. By comparing it to Yesterday's levels, the strategy identifies whether the market is opening at a premium or discount, which is crucial for intraday momentum.
Q: Can this strategy be used for swing trading?
No, the Fiary Four Price is strictly an intraday system. It relies on capturing the specific volatility expansion that occurs when yesterday's structural boundaries are breached during the current session.
How This Strategy Works
5-stage decision flow from market reading to trade management
1
Level Calculation
The Four Prices
Retrieve Yesterday's High, Low, and Close prices
Identify Today's Opening price at market start
2
Trigger Setup
Breakout Thresholds
Long Trigger = Max(Yesterday High, Today Open)
Short Trigger = Min(Yesterday Low, Today Open)
3
Order Placement
Wait for Touch
Place Buy-Stop at Long Trigger and Sell-Stop at Short Trigger
Verify market volatility is sufficient for a meaningful move
4
Trade Management
Intraday Monitoring
Immediately place hard stop-loss upon entry
Monitor for one-way momentum; avoid news chop
5
Mandatory Exit
End of Session
Liquidate all positions before the market close
No overnight holdings; reset all levels for tomorrow
Strategy Components Reference
Related Video Resources
Learn more about the Fiary Four Price Strategy strategy.
The 2 Lines That Predict Tomorrow's Trades (Previous Day High and Low Strategy)
A deep dive into trading breakouts of previous-day High/Low/Close and today's Open — the exact four price levels that define the Fiary Four Price system.
- Fiary Four Price Strategy
- The Fiary Four Price system is a high-velocity intraday breakout strategy that focuses on four key price levels: Yesterday's High, Low, and Close, along with Today's Open. By identifying the range established by these levels, the system captures explosive intraday momentum when price breaks beyond the "gravity zone" of the previous day's action.
- Fiary Four Price Strategy Market Suitability
- The Fiary Four Price Strategy strategy works best in Markets where the daily bar structural analysis (O, H, L, C) provides a clear directional bias for the next session.. High-momentum environments where price decisively breaks beyond the previous day's established range.. Trend-continuation days where today's open aligns with yesterday's close to signal strong institutional intent.. Highly liquid assets that respect psychological levels of previous session extremes (High/Low).. Traders should avoid using this strategy in Low-volatility "inside days" where price remains trapped within the previous day's High and Low boundaries.. Choppy market conditions where price repeatedly crosses the Today Open level without sustained momentum.. Assets with frequent overnight gaps that invalidate the structural relationship between yesterday's close and today's open.. Market periods preceding major economic data releases where price action is erratic and lacks clear structure.. The risk level is categorized as MEDIUM. This is a high-velocity breakout system. Ensure tight stop-losses are used as false breakouts at the "Four Price" levels can lead to rapid reversals.
- How do the four price levels determine the daily bias?
- The relationship between Yesterday's High, Low, Close, and Today's Open defines the "gravity zone." A breakout above the highest of these or below the lowest of these signals that new market sentiment is overriding the previous day's structure.
- Why is Today's Open included in the calculation?
- Today's Open reflects the immediate market reaction to overnight news. By comparing it to Yesterday's levels, the strategy identifies whether the market is opening at a premium or discount, which is crucial for intraday momentum.
- Can this strategy be used for swing trading?
- No, the Fiary Four Price is strictly an intraday system. It relies on capturing the specific volatility expansion that occurs when yesterday's structural boundaries are breached during the current session.
- Yesterday High
- The highest price reached during the previous trading session. This acts as a primary psychological resistance level. Formula: High(PrevDay)
- Yesterday Low
- The lowest price reached during the previous trading session. This acts as a primary psychological support level. Formula: Low(PrevDay)
- Yesterday Close
- The final settlement price of the previous day. It represents the collective agreement on value at the end of the last session. Formula: Close(PrevDay)
- Today Open
- The opening price of the current session. It indicates how overnight news and sentiment have shifted the market's starting point. Formula: Open(CurrentDay)
- Long Entry Level
- A long position is triggered when price breaks above the higher of yesterday's high or today's open. This confirms that the market is breaking out of the immediate resistance cluster. Formula: Max(YesterdayHigh, TodayOpen)
- Short Entry Level
- A short position is triggered when price breaks below the lower of yesterday's low or today's open. This confirms that the market is breaking through the immediate support cluster. Formula: Min(YesterdayLow, TodayOpen)
- Range Filter
- If the range between yesterday's high and low is too narrow, the breakout might lack conviction. A volatility filter ensures we only trade on days with sufficient potential expansion. Formula: High - Low > ATR
- Instant Breakout
- The strategy uses buy-stop and sell-stop orders placed exactly at the trigger levels. Entry is executed the moment the level is touched, capturing the initial burst of speed. Formula: Stop Order
- Gap Handling
- If the market opens with a significant gap, the strategy waits for price to sustain the direction rather than fading the gap immediately. Formula: Price > Open
- Day-End Exit
- Fiary Four Price is a pure intraday system. All positions must be closed at the end of the session to avoid overnight gap risks and binary event exposure. Formula: Market Close
- Tight Hard Stop
- Given the high velocity of breakouts, a tight hard stop is essential. If the breakout fails to sustain momentum and reverses back into the range, the position is closed immediately. Formula: Entry ± 0.5% / ATR
- One Trade per Day
- To prevent being "chopped up" in a non-trending market, the strategy often limits execution to one long and one short attempt per day. Formula: Count <= 1
- Event Protection
- Major economic releases (like NFP) can create fake breakouts. Discipline requires avoiding entries right before high-impact news events. Formula: Avoid News
Observa primero / Luego actúa.
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