What is the Opening Range Breakout in day trading?

Hello Paul,

The opening range breakout in day trading is where you take a market position after the price goes beyond the previous candle’s high or low. Dubbed the opening range, the initial 30 minutes boast of high volatility, therefore, determining whether bulls or bears will control the day.
The idea is buying when shares exceed the range’s peak and selling when they sink beneath its low. Note that this period ranges from five minutes to one hour depending on your trading strategy. However, you can experiment with different timeframes. Small share sizes and predictable stocks are ideal for your practice.
Waiting longer lets you analyze the market before taking a position. Though volatility decreases as the session continues, an upside is less likely. Similarly, avoid trades where major bumpers occur too close to each other, for instance, past support and resistance areas.
In case you’re on the breakout’s wrong side, leave the trade and find a new opportunity. On the downside, this technique isn’t suitable for sideways markets and non-gapping stocks.