Opening Range: Why is it of Interest to Day Traders?

The opening range depicts the highs and lows of security prices for a specific time period after the market opens.

What Are Opening Range Breakouts?

After the market opens, the opening range is a set of highs and lows for a set time period. Typically, this is the first 30 or 60 minutes of trade, and it is one of the most crucial chart patterns for profiting the stock market.

Opening Range Breakout Screen

An opening range breakout is a break from the opening range. The opening range is defined differently depending on your timeframe and testing.

Size of the Opening Range Breakouts

Before you trade, the first thing you need to do is determine the size of the opening range. When the market begins, you should observe two candles that will help you determine the range size.

Size of the Opening Range

The size of the opening range is the difference between these two prices. We measure the range size by the green lines. The top horizontal line depicts the high opening range, while the lower horizontal line depicts the low opening range.

Opening Range Breakout Trading Strategy

The opening bell of the stock market can be approached in a variety of ways. Let’s have a look at a day trading strategy:

Early Morning Range Breakout

This is one of the most extensively used formulas for opening range success. The early morning range breakout is concerned with the size of the gap and the high/low of the breakout.

Chart Pattern Gap Pullback Buy

This strategy works with bullish gaps. When we see a bullish gap on the chart, the price instantly starts moving in the opposite direction of the gap.

Trading Edge and Its Importance to a Trader

A trading edge is a strategy, observation, or approach that allows you to gain a financial advantage over other market participants. It doesn’t have to be complicated to accomplish its goal.

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