There is a saying circulating in the industry: "The first hour sets the tone for the entire day." It sounds mystical, but it's actually not — during the opening, all the information, news, and market expectations accumulated overnight are instantly digested, filtered, and absorbed by participants, ultimately converging into the first candlestick.

From this perspective, the opening price is like a watershed; it tells you the likely direction of the market for the entire trading day. Why? Because at the opening moment, all forces in the market are vying for pricing power.

For example, holders of short positions are afraid that overnight good news might lead to their positions being trapped, so they are eager to close their positions and cut losses as soon as the market opens. Meanwhile, bullish buyers who are optimistic about the future also don't want to fall behind, rushing to build positions at the open. There are also institutions engaging in hedging and risk management, taking advantage of the most liquid moment at the open to quickly open new positions or close old ones.

All of this unfolds within just a few minutes. The more anxious the traders are, the more intense the competition, and the more volatile the price movements become. These real market psychology factors are ultimately reflected in the opening price, setting the tone for the entire day's market trend.