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How To Use The Opening Range

The document discusses how to use the opening range to identify trading opportunities. Specifically: 1. The opening range is the first high and low prices of a given trading period, such as a day, week, or month. 2. The opening range matters because the market typically either breaks out of the range and trends, breaks out and reverses, or trades within the range, providing opportunities. 3. Tips are given on how patterns in subsequent days' closing prices relative to the opening range can signal continuation or reversal opportunities.

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Chris Rodriguez Solo
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562 views

How To Use The Opening Range

The document discusses how to use the opening range to identify trading opportunities. Specifically: 1. The opening range is the first high and low prices of a given trading period, such as a day, week, or month. 2. The opening range matters because the market typically either breaks out of the range and trends, breaks out and reverses, or trades within the range, providing opportunities. 3. Tips are given on how patterns in subsequent days' closing prices relative to the opening range can signal continuation or reversal opportunities.

Uploaded by

Chris Rodriguez Solo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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How to use the Opening

Range
Pips2Profit
Cameron Benson
What is the opening range?
Opening Range is the first high and low in price in any given
trading period.

This applies to:

● Year
● Month
● Day
● Session
Weekly Template

Why does the opening range matter???

1. Market only does 3 things:


a. Breakout and trend
b. Breakout and revere
c. Trading Range
i. From the above, you can
frame trading ideas!!!
2. Helps identify where volume is
trapped.
3. Helps identify parabolic 3 day trading
setups for Wednesday/Friday
Tips and Tricks
1. Market Close OUTSIDE Opening Range On Tuesday, probability of Wednesday continuation increase significantly.
(UNLESS BREAKOUT FAILS ON WEDNESDAY!!!)
2. Market Close a FAILED BREAKOUT on Tuesday, probability of reaching for the other end of the Opening Range increase
significantly.
3. If Mondays Breakout fails, and then Tuesdays breakout fails at the other end of the week, high potential for Parabolic
Trend Trade on Wednesday.
4. If Tuesday hits both sides of the Opening Range, the potential for Parabolic trend trade increases.
5. 3 Drives out of the Opening Range coming into Friday has the highest potential for large reversal.
6. If there are only 2 drives out of the opening range coming into Friday, there is a higher probability of Parabolic Trend
Trade (Friday)
7. If the breakout on Tuesday closes 3 levels of rise or fall out of the opening range, the potential for reversal throughout
the week increases.
Opening Range/Weekly Template Considerations
1. I am STILL only looking for TWO PATTERNS TO SHOW
UP ON THE CHART
a. Parabolic Trend Trade
b. Long Squeeze/Short Squeeze
2. Market structure plays a MASSIVE role in identifying
the trades.
a. If market makes a new high coming into session, is it
pulling back in 3 pushes?
b. If a new high/low was made the day prior, is the
market pulling back in 3 pushes?
c. If there has been a BREAK IN STRUCTURE IN THE
OPPOSITE DIRECTION, is the market now pulling back
in 3 pushes for the continuation in YOUR SESSION??
3. Look for 3 drives out of consolidation!
a. 3 Drives out of opening range.
b. 3 Drives out of previous days high low
4. Risk/Reward should MAX OUT on these trades
a. 1:4 or greater if entries on the 1 min chart
b. High tier/5 Star Setups
Examples. Examples. MORE EXAMPLES
-3 Levels of rise
from LOW

-3 Pushes back
down
throughout the
week.

-Thursday was
an inside day

-Friday was
retest of the OR
High and failed
breakout of
Inside bar
(Daily Chart)
-Hit Boths sides
of range on
Tuesday

-Breakout failed
following day

-WATCH
STRUCTURE

-3 levels of rise
from LOW
Monday Tuesday Wednesday Scenarios
Day 0 Trading Setup
● In 1 day, peaks high sharply and then peaks low sharply and goes into consolidation in the middle
● A lot of times will hit both sides of previous days high/low in 1 day.
● Look for PB short squeeze/Long squeeze or a PB Trend Trade the next day.
● LOW/HOW Setup
Examples of Day 0

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