Open Test Drive (OTD)

Definition

Open Test Drive (OTD) in plain English

Think of the market poking a fence to see if it will hold: right at the open, price nudges past an important level from the day before, finds nobody willing to keep pushing, and then snaps back hard the other way. That quick 'poke-and-fail' is a clue, because it shows the level was a real wall and the crowd that got trapped on the wrong side now has to bail, adding fuel to the reversal. Traders watch for an Open Test Drive because the fast, decisive turn ('with conviction' just means strong, one-directional, no dithering) often sets the tone for the whole session.

Learn these first

• Break-even stop
• True Range (TR)

Related Volume Profile Analysis terms

• Ask
• ATR (Average True Range)
• Auction Market Theory
• Below value
• Bid
• Break-even stop
• Buying tail
• Day type
• Excess
• Excess high / Excess low