Module 5 · The Open & Application
The Four Open Types
Conviction at the open: drive, test-drive, rejection-reverse, auction.
In this lesson you'll
- Rank the four Dalton open types by conviction
- Recognize an open-drive
- Map the open type to a playbook
Dalton's four opening types rank the conviction present at the open and forecast likely development, from highest to lowest:
- Open-Drive — highest conviction. Price is released aggressively one way at the bell and never looks back; participants decided before the open. Often a trend day; the open frequently becomes the day's extreme.
- Open-Test-Drive — high conviction after a check. The market tests a known reference, rejects it, then reverses and drives the other way. The test point usually becomes a day extreme.
- Open-Rejection-Reverse — lower conviction. Opens, moves one way, meets opposite activity strong enough to reverse it back through the opening range. The reversal is the signal.
- Open-Auction — lowest conviction. Rotates around the open with no clear initiative; meaning depends entirely on location vs prior value.
Key takeaways
- Open types rank conviction: drive > test-drive > rejection-reverse > auction.
- Open-drive = highest conviction; often a trend day, the open is often the extreme.
- Open-test-drive = a fake toward a reference, then a real drive the other way.
- Higher conviction → trust the early extreme; lower → expect rotation.
Check your understanding
Pick an answer to reveal instant feedback. Answer every question to complete the lesson.
Why that's off: Open-Auction is the LOWEST conviction (rotational).
Why that's off: Open-Rejection-Reverse is lower conviction (the reversal is the signal).
Why that's off: Open-Test-Drive is high but second to the Open-Drive.
The Open-Drive — aggressive, immediate, one-directional, never trading back through the open — is the highest-conviction open and often produces a trend day.
Why that's off: Aimless rotation is an Open-Auction.
Why that's off: Driving with no test is the Open-Drive.
Why that's off: It drives directionally away, not back to the open.
The Open-Test-Drive probes a reference (e.g., prior high/low) to confirm no interest, then reverses and drives with conviction — the test point usually becomes a day extreme.
Educational content only. Nothing here is financial or trading advice. Order-flow and options patterns shift probabilities; they never guarantee outcomes.