Professional Documents
Culture Documents
Opening Range Trading Strategy - Intraday Trading Course
Opening Range Trading Strategy - Intraday Trading Course
Price Action
How to Study Candlestick
Opening Range Trading Strategy
Candlestick Analysis
Back to: Trading with Smart Money
Price Action Analysis
Advanced Price Action Analysis
Thrust Pullback and Measuring
Move Analysis
How to Trade with Smart
Money
Supply and Demand Zone
Trading
How to Day Trade with Trend
Multiple Time Frame Analysis Best buy sell signal system
Returns.
Resistance
Advanced Candlestick Analysis Opening Range Trading Strategy
Trendline Trading Strategy
WRB Trading Strategy In this article, I am going to discuss the Opening Range Trading Strategy in detail. Please read our previous article where we
discussed VWAP Trading with examples. At the end of this article, you will understand the following pointers in detail.
Day Trading Strategies
VWAP Trading Strategy 1. Understanding market sentiment
Gap Trading Strategy 2. Understanding opening range
Intraday Open High Open Low
3. Opening range comparative analysis
4. Opening range trading strategy
Trading Strategy
PIN BAR Trading Strategy UNDERSTANDING MARKET SENTIMENT
Trading with Sideways Price
Action Area 1. Different market sentiment is like related to the prospects of a specific company. There is also sentiment based on the
Pullback Trading Strategy
company’s industry group, and there is sentiment regarding the condition of the whole market(corona effect)
2. The force behind any price move is market’s mood or sentiment. Not news or earning, there are already happen. I mean
Intraday Breakout Trading old.in good news price fall why?
Strategy 3. Sentiment represents bullish or bearish feelings for the future prospects of a stock. This means the current movements of a
Risk Management stock’s price are dictated by what the market expects will happen in the future, not what has already taken place. Any news
is old; any reported earnings data is old information.
3 Techniques for Risk
Management in Trading How to find out market sentiment in chart?
Stock Selection & Live Scanner Through Principle of Opening Range (OR) trading approach
How to make own Day Trading You should look at a stock’s price action and volume. And find out what it demonstrates that its sentiment is bullish, bearish
Scanner or undecided?
https://dotnettutorials.net/lesson/opening-range-trading-strategy/ 1/19
9/6/2021 Opening Range Trading Strategy - Intraday Trading Course
RSI Trading Strategy 1. Where price open relative to previous day high and low
2. Where the next support or resistance level ?
BTST
BTST Trading Strategy
TECHNICAL ANALYSIS
MASTERCLASS
Technical Analysis
Market Structure
Understanding Market
Structure through Swing
Supply and Demand Trading
(Part – 1)
Supply and Demand Trading
(Part – 2)
Chart Patterns
Top 7 Chart Patterns in Trading
Every Trader Needs to Know
How to Trade Bull Flag and Bear
Flag Pattern
OPENING CANDLE in Opening Range Trading Strategy
How to Become a Successful
Trader OPENING CANDLE SUGGEST THE SENTIMENT FOR THE DAY. IF FORMED AT KEY SR LEVEL(PDL/PDH/LSL/LSH)
How to Become a Successful
Trader Clean ,Strong wide range candle with volume indicate strong market sentiment
PIN BAR FROM PDH/PDL also suggest strong sentiment
The proper knowledge of opening candle and the price action around a reference point very crucial for successful trades. Follow
the trend
Initial move
Smart money
Retailer
Market always looks to handle the current business first. So the initial move will usually tell us about,
Who were the trapped traders from yesterday scampering for an exit today?
Who missed an entry yesterday and are rushing into the morning markets?
Who is driving the price?
once the current business is taken care of, we can then start looking for the serious traders trying to give market a direction.
https://dotnettutorials.net/lesson/opening-range-trading-strategy/ 2/19
9/6/2021 Opening Range Trading Strategy - Intraday Trading Course
The “Morning Specials” is composed with two scenarios which can trap novice traders to believe market is moving in one direction,
but in fact, reversal is just around the corner.
1. Often you see price is moving in one direction very strongly from the opening bell. The momentum is so strong, it creates a
parabolic curve. It makes you regret not entering early. But don’t get trapped, this parabolic move often get reversed. The
psychology behind this is that trend is healthy when it’s made of average trend bars closing near the extremes,
consecutiveness and small corrections. But when the momentum gets out of control, such as a parabolic curve with gigantic
bars without pullbacks, control has to be restored. Too fast too big is a problem because there is no consistency. Market is
balanced, where both bulls and bears can profit. If price is only favoring one side, resistance will be met. Keep this in mind
when you see volatile movement in the early morning. When you see clear signs of failure or exhaustion, counter it.
2. Operator will run the price down fast from opening and or below any reference point this action creates interest among the
traders and brings in selling .Smart money objective are
To test the selling power of public also who long now wind and exit
The stock of which in turn is demand by the operator and gives him a chance to buy a little long stock and put out some long
orders.
https://dotnettutorials.net/lesson/opening-range-trading-strategy/ 3/19
9/6/2021 Opening Range Trading Strategy - Intraday Trading Course
Down opening from strong close or up opening from week close indicate may be the beginning of the change of the trend
either way(or type 2)
https://dotnettutorials.net/lesson/opening-range-trading-strategy/ 4/19
9/6/2021 Opening Range Trading Strategy - Intraday Trading Course
When the pullback is deeper and stronger than expected, let it roll over. Wait for test
Low volume move
Opening range is defined as the difference between the previous day close to today high or low ,as shown in left side of image
Initial range defines as the difference between the firs high and low of the day. So assume opening range and initial range has
same meaning. So next onward opening range means initial range
https://dotnettutorials.net/lesson/opening-range-trading-strategy/ 5/19
9/6/2021 Opening Range Trading Strategy - Intraday Trading Course
Stocks at opening usually experience violent price action that arises from heavy buy and sell orders that come into the
market. This heavy trading in the first five minutes is the result of the profit or loss taking of the overnight position holders as
well as new investors and traders
Wise traders sit on their hands and watch for the opening ranges to develop and allow the other traders to fight against each
other until one side wins.
Then develop a trade plan in the direction of the opening range breakout
The Opening Range Trading Strategy is consisting of price and volume as inputs to determining the current bias (
bullish, bearish or neutral of the stock’s trading activity)
The Opening Range Trading Strategy is the difference between the first high and low of the day.
How to find high and low? At least one candle should be completely against the trend. If that candle has low volume it
suggests more strength on trend cont.
https://dotnettutorials.net/lesson/opening-range-trading-strategy/ 6/19
9/6/2021 Opening Range Trading Strategy - Intraday Trading Course
https://dotnettutorials.net/lesson/opening-range-trading-strategy/ 7/19
9/6/2021 Opening Range Trading Strategy - Intraday Trading Course
Depend open the Opening Range, we can predict what types of day may occur
There are various types of day pattern, but generally these four types day pattern are occur again and again
https://dotnettutorials.net/lesson/opening-range-trading-strategy/ 8/19
9/6/2021 Opening Range Trading Strategy - Intraday Trading Course
Trend Day
Double-Distribution Trend Day
Typical Day
Trading Range Day
Trend day
https://dotnettutorials.net/lesson/opening-range-trading-strategy/ 9/19
9/6/2021 Opening Range Trading Strategy - Intraday Trading Course
RANGE DAY
https://dotnettutorials.net/lesson/opening-range-trading-strategy/ 10/19
9/6/2021 Opening Range Trading Strategy - Intraday Trading Course
Price rotated up and down without any clear directional conviction during the day
Typical day
https://dotnettutorials.net/lesson/opening-range-trading-strategy/ 11/19
9/6/2021 Opening Range Trading Strategy - Intraday Trading Course
We will ask five questions for analyzing opening range .The answers to these questions will give your insight into the stock’s
current condition.
BIG PICTURE
Inside or outside of previous day range. Identify the opening range and see where the opening range stands, above or
below the previous day range (PDR)
Is market structure change
Identify the opening range and see whether the opening range low at support or opening range high at resistance.
Why is it important to establish whether or not the low (high) represents significant support (resistance)? When you are
trading using the OR you will approach each day assuming that the OR high and low are likely to be important price levels
If you knew that a particular price level was likely to be either the high for the day or a significant breakout point, wouldn’t
you want to focus on that stock and that price level? You don’t need to know anything about the OR to understand that.
Where was the last SR crack, on upside or downside, successful crack or failure
https://dotnettutorials.net/lesson/opening-range-trading-strategy/ 12/19
9/6/2021 Opening Range Trading Strategy - Intraday Trading Course
https://dotnettutorials.net/lesson/opening-range-trading-strategy/ 13/19
9/6/2021 Opening Range Trading Strategy - Intraday Trading Course
Opening range represents the bulls and bears establishing their initial positions for the day.
The most basic application of the opening range principle is that, when a stock move away from the opening range indicates
that one side is stronger than the other. When a stock moves above the opening range the bulls are in control. This means
the prevailing sentiment in the stock is bullish. The manner in which the stock breaks above and trades above the opening
range will indicate the strength of the bullish sentiment.
Don’t buy aggressively until this stock heads upward. Those stocks that trade back above the opening price are likely to go
even higher. This is because of new bulls entry plus short cover buy order .so after the reaction period market set the tone
of the morning trend
Check bias with trend
Identify how much a stock retraces in relative to how much initial move in the opening range. And pay attention to the
reaction and how stocks tend to act during this period
Flat pullback (price consolidate high of the day). Look to see if most of the trading is near one end of the range. Has the
stock spent most of its OR period near the highs of the OR? If so, this is bullish Strong buy signal.
If a stock goes from an up opening and then sells off and remains beneath its opening price after the morning pullback has
stabilized, it’s possible that the stock has reached its high of the day.
however , if a stock gaps up and pulls back during the morning pullback , but then rallies to break above its opening price ,
the mark-up was probably not trap gap and the stock should make new intraday highs
https://dotnettutorials.net/lesson/opening-range-trading-strategy/ 14/19
9/6/2021 Opening Range Trading Strategy - Intraday Trading Course
https://dotnettutorials.net/lesson/opening-range-trading-strategy/ 15/19
9/6/2021 Opening Range Trading Strategy - Intraday Trading Course
Big volume during the OR means there is something unusual going on and that is exactly what you want if you are looking
for a big breakout day
Note: Volume it is important to watch the volume carefully, when determining if price will continue with the direction of opening
range
If stock up and the volume also high and also the price remain above its opening price after the early morning pullback, it is
an excellent sign that the stock has further to go on the upside.
If high volume appear after a up move and the stock immediately comes under selling pressure ,chances are that this
volume was a seller
Let’s understand with a bullish relative strength with respect to index or sector
When the market takes out it’s OR swing low most stocks will follow suit and take out their respective Opening Range low
https://dotnettutorials.net/lesson/opening-range-trading-strategy/ 16/19
9/6/2021 Opening Range Trading Strategy - Intraday Trading Course
1. If Stock hold the open or goes sideways when index down. The stocks that do not trade below their OR low are
demonstrating bullish intraday relative strength. If the market does not follow through in its breakdown the strong relative
strength stocks are the best candidates for an immediate rise in price
2. If the Stock up
These are the sign of strength show in the stock relative to index, don’t short these stock , but patiently wait for the index to show
some strength or turn from down to up , then go long
Sector is indicating some strength on upside as price struggling to close below opening range low and making higher low .so want
bullish stock for long entry
https://dotnettutorials.net/lesson/opening-range-trading-strategy/ 17/19
9/6/2021 Opening Range Trading Strategy - Intraday Trading Course
The Opening Range Provides Price Points for Identifying Opportunity and Risk
Entry
1. Breakout
2. Pullback
3. Reversal
Please watch the following video if you want to learn and understand Opening Range Trading Strategy concept in a more better
way.
In the next article, I am going to discuss Opening Range Breakout in detail. Here, in this article, I try to explain the Opening
Range Trading Strategy in detail. I hope you enjoy this article. Please join my Telegram Channel to learn more and clear your
doubts. https://t.me/tradingwithsmartmoney.
5 minutes
https://dotnettutorials.net/lesson/opening-range-trading-strategy/ 18/19
9/6/2021 Opening Range Trading Strategy - Intraday Trading Course
Reply
Pingback: Breakout Trading Strategy | My Secret Method – Website designing and webs development
Leave a Reply
Your email address will not be published. Required fields are marked *
Comment
Post Comment
About Privacy Policy Contact ADO.NET Tutorial Angular Tutorials ASP.NET Core Blazor Tuturials ASP.NET Core Tutorials ASP.NET MVC Tutorials
ASP.NET Web API Tutorials C Tutorials C#.NET Programs Tutorials C#.NET Tutorials Cloud Computing Tutorials Data Structures and Algorithms Tutorials
Design Patterns Tutorials DotNet Interview Questions and Answers Core Java Tutorials Entity Framework Tutorials JavaScript Tutorials LINQ Tutorials
Python Tutorials SOLID Principles Tutorials SQL Server Tutorials Trading Tutorials JDBC Tutorials Java Servlets Tutorials Java Struts Tutorials C++ Tutorials
JSP Tutorials MySQL Tutorials Oracle Tutorials ASP.NET Core Web API Tutorials
© Dot Net Tutorials | Website Design by Sunrise Pixel
https://dotnettutorials.net/lesson/opening-range-trading-strategy/ 19/19