We use the color of the monthly/weekly candle as the MINIMUM criteria for determining. This is one of the angles to determine order flow.
The open price is the foundation of reading the tape.
Tape reading comes down to having a constant that tells us if price is moving closer to, or farther away from - so we can determine strength or weakness. Most people use their entry price.
But that's only valid after you enter a trade. reading at its highest levels is understanding how to do this BEFORE you enter.
The monthly and weekly are the higher time frames, the order flow that takes deep pockets to move a stock up or down.
We then take it deeper by determining if the monthly/weekly are also well-bid. If so, this adds to the argument of reasons to consider buying (because we expect follow through)
The daily charts and the optimal entry are used to time entries and exits.
The optimal entry is determined by analyzing recent order flow to discover the ATM, or average true move.
So for example, if a stock's average true move during a bullish run of order flow is $$20, then the optimal entry would be as near zero as possible.
But how would you know that before the trade?
Simple...Once we determine order flow on the monthly and weekly charts, then we go back to the daily charts to identify the push and the pause.
The push is the ATM (average true move) so when a stock rallies and pauses, the pause is the spot we look to enter, expecting the next move to be an ATM.