Price action and chart patterns
Opening range breakout
The high and low of the first hour of a session (for example the London open). A break of that range often sets the direction of the day.
Why it works
The first hour concentrates orders from the overnight session. Once one side wins, the move tends to extend through the session.
How to use it
Mark the first-hour range of London or New York. Trade a candle close beyond it with the stop inside the range.
The typical mistake
Trading the opening range on days with major news later on: the real move comes at the release.
FAQ
What is Opening range in trading?
The high and low of the first hour of a session (for example the London open). A break of that range often sets the direction of the day.
How do you trade Opening range?
Mark the first-hour range of London or New York. Trade a candle close beyond it with the stop inside the range.