Opening range breakout is a strategy based on the price range formed in the first few minutes of market open. Traders mark the high and low of this range.
A trade is taken when price breaks above or below this range with volume. The strategy works well in trending markets.
Stop loss is usually placed on the opposite side of the range. False signals are common on low volume days.
This strategy helps traders avoid early market noise and trade with structure.
« Back to Glossary Index