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Here's something that took me years to figure out…
Ever since it “clicked” I’ve been able to trade at an ~80% win rate in the first 1-2 hours of market open....
The pre-market high isn't just another number on your chart - It's one of the most powerful levels you can trade around.
Yet almost nobody uses it correctly.
Let me explain...
A few weeks back, I was watching PayPal approaching its pre-market high and the average day traders would see this as just another resistance level.
But there's something special about pre-market highs...
They often act as magnets during regular trading hours.
Why?
Because that's where the early institutional traders placed their bets.
Before retail traders even wake up, big players are already positioning themselves.
They're setting up their trades, establishing their levels.
When price approaches these levels during regular hours, it creates a fascinating dynamic.
Sometimes it acts as resistance. Sometimes support. But it ALWAYS demands attention.
This is why I pay such close attention to pre-market action, and this why we do daily premarket scans inside the Theta Warrior Elite Community.
It’s not to trade it (that's usually a fool's game), but to understand where the big players are focusing.
I've seen countless traders ignore these levels, thinking "pre-market doesn't matter."
They couldn't be more wrong.
These levels often provide perfect entry points, stop loss levels, and profit targets - if you know how to use them.
And if you don’t, here’s something you can try next time you’re setting yourself up for a profitable day in the market…
Before the market opens, identify and mark these levels on your chart. They often provide reliable resistance and support during regular trading hours.
When the price nears the pre-market high, check for increasing volume to confirm whether the level is likely to hold or break.
Oh and theres one more thing...
You need to understand context - a pre-market high means something different in a strong market versus a weak one and behaves differently on high-volume days versus low-volume ones.
This is the kind of nuance that separates consistently profitable traders from the rest.
Remember: The market leaves clues everywhere and if you want to increase the returns you generate with trading - your job is to learn to read them.
Trading with knowledge,
Team Theta Warrior