The Opening Range

When you get bar 1 and bar 2 in opposite directions, you can assume this is probably the Opening Range.

If bar 1 is a large taily bar it is probably the Opening Range.

When bar 2 is an Outside Bar it is probably the Opening Range too.
Read more here at Cad’s blog: First bar: Outside bar

A misplaced Reversal Bar (e.g. a bull RVB at the high of yesterday’s range or a bear RVB at the low of it) can be the Opening Range as well.

Look for a failed Breakout (if the OR is large enough) or a Breakout Pullback of the Opening Range.

You can also look for limit trades

  • Buy Below or Sell above (BB/SA) the extremes of the Opening Range or Higher Lows, Lower Highs within that
  • Buy the Low or Sell the High of a Swing or the extreme of the Opening Range (creating DB/DT or mDB/mDT)
  • Buy or Sell closes near the extremes of the Opening Range
E-mini 5 min RTH chart from 2018/08/17

On this day the Three Bar Reversal (3BR), that created a Wedge failed Breakout (a three push move) of the Opening Range, was the origin of a trend, that last all day.

Check out also this post about the Open.
https://www.priceactionindicators.com/2019/04/27/the-open-some-general-rules/

Check out these posts from my favorite blog for more details.

Opening range Breakout and pullback
The opening fBO
Measured move of opening range
Trading plan: Trading Range day
Anatomy of a trading day

 

Leave a Reply

Your email address will not be published. Required fields are marked *

if you post a comment, we save your comment text, name, email address and website (if provided), also time and date - see also our Privacy Policy