The Opening Range is the range obtained from the highest and lowest price of a security during the first minutes of daily trading activity. A general introduction to the concept was discussed in our Opening Range Spotlight (with video). You may also register for FREE trial here any time.
Indicator Description
The Opening Range breakout indicator will plot the high low range for a security during the first minutes of the regular session. For example, you may plot the initial 5, 15 or 30 minutes. One may then identify breakout scenarios when prices move above or below the chosen range.
The indicator will also allow you to plot target levels at specific Range Extension Bands. These are based on either the pre-session range, or the specified opening range. Also, the regular open for all major futures contracts are preset in a dedicated database. Therefore, you won’t need custom session templates, provided NinjaTrader’s default <Use Instrument Setting> Trading Hours are used.
Multi Time Frame Feature:
This version is a multi-timeframe (MTF) version of the standard library version. The MTF feature adds a secondary minute bar series to the chart, which calculates the opening range. This is particularly useful for tick, range and volume charts where standard Opening Range Breakout indicators may not display correctly. Problems generally occur with these bar types if the last bar expands beyond the range, closing after the specified opening range period. Because of the MTF feature however, the premium Opening Range breakout indicator will display the correct range for all bar types.
Furthermore, if using minute charts, you will want to use the premium version if the opening period is not an integer multiple of the bar period. For example: If you trade a 3 min chart and use an opening period of 10 minutes, it is not an integer multiple of the bar period.
Other Premium Features:
You may define the opening period directly via indicator dialogue box. In addition, one may plot the regular open together with the initial one (1) minute range after the open. The premium Opening Range Breakout indicator also features a separate version designed to calculate the opening range in seconds.
In addition, you may also display the night session or pre-session range. This is different for each instrument and refers to the electronic session prior to the regular open. By default the indicator pulls the instrument trading times, regular open as well as pre-session times from it’s own databank. This feature applies for the following exchanges: CME, NYMEX, CBOT, EUREX and ICE. You may also use the premium Opening Range with e-micros and cryptocurrencies. Finally, you may add your own trading hours to this database.
Finally, the premium Opening Range Breakout indicator comes with a market analyzer column. Specifically, the Market Analyzer returns information on how far prices have moved outside the range.
The indicator is available for NinjaTrader 8 and additional information on applying it in the Opening Range Breakout Setup is available on our blog.
FAQs
To calculate the opening range, traders first determine the time frame they want to consider, typically ranging from the first 15 to 60 minutes of the trading day. Within this time frame, the opening high is the highest traded price, and the opening low is the lowest traded price.
What is considered the opening range? ›
The opening range is the gap between the security's high and low candles in the early morning trading session. Price, volume, and time can influence this range. For example, the time gap can be 5, 15, 30, or 60 minutes. The traders use this trading strategy to determine the support and resistance levels of the market.
What is a 30 second opening range? ›
An opening range will show the high and low of the time you configure. For example, a 30 second opening range will populate the high and low price during the first 30 seconds of the trading day.
How to select stocks for opening range breakout? ›
Here's a good check list for trading an opening range breakout:
- Have a bias: long or short, don't take in either direction. Establish your bias based on the daily chart's price action. Trade in direction of the trend/supply-demand imbalance.
- Catalyst. News. Earnings.
- Criteria. Momentum, volume, low float, liquidity.
To calculate the range, you need to find the largest observed value of a variable (the maximum) and subtract the smallest observed value (the minimum).
What is a false opening range breakout? ›
A false breakout is when the price moves beyond the previously established price range but then retreats to within the previous price range.
Why is opening range important? ›
Opening ranges are important to traders because they can provide an indication of sentiment and price trends for the day. Traders often monitor opening ranges before or after periods of heightened volatility. Many traders follow the opening range after a major event or announcement.
What is the first 15 minutes trading strategy? ›
Here is how. Let the index/stock trade for the first fifteen minutes and then use the high and low of this “fifteen minute range” as support and resistance levels. A buy signal is given when price exceeds the high of the 15 minute range after an up gap.
What is the 10 minute opening range? ›
The 10 minute Opening Range (OR) dynamically identifies and visualizes the opening range of a trading session within the first 10 minutes after the market opens at 9:30 AM EST, concluding at 4:00 PM EST, reflecting the typical trading hours for U.S. stock exchanges.
What is the opening range breakout for 30 minutes? ›
The opening range is generally defined as the first 30 minutes of the session. Entry confirmation typically comes from a candle closing above the high for a bullish breakout or below the low for a bearish one.
The Range Break-out strategy uses a target and a stop loss. These orders are placed automatically if the TradeGuard is activated. The stop loss is placed on the opposite side of the range. If, for example, the trader is long after a buy signal, the stop is placed on the bottom of the range.
What is the 15 minute orb strategy? ›
The 15 minute ORB Strategy is determined by using the High and Low from the first 15 minutes of the regular session (930am - 945am ET), but there are others who have successfully traded with a 5 minute ORB or even a 30 minute ORB strategy.
What is the best indicator for breakout? ›
breakouttrading
- ORB Heikin Ashi SPY 5min Correlation Strategy. ...
- Bull Bear Trend Indicator. ...
- Relative Volume / Volume Breakout Multiplier By Afnan Tajuddin. ...
- Liquidation Levels with Liquidity Sweeps/Breakouts [AlgoAlpha] ...
- Machine Learning Breakouts (from Pivots) ...
- 3 Pivots Interpolation Breakouts.
The Opening Range Breakout (ORB) Strategy involves taking forex positions when the currency pair prices break below or above the previous day's high or low. The opening range price is what you see during the first trading hour.
What is the formula for the range method? ›
Stated as Range = Maximum Value–Minimum Value. E.g., in the data set 4,6,10, 15, 18 has a maximum of 18, a minimum of 4 and a range of 18-4 = 14. Hence we have to arrange the set of numbers from smallest to largest and to subtract the smallest value from the largest.
How do you calculate opening units? ›
To calculate the number of units on hand at the beginning of the accounting period, take the number of units at the end of the previous accounting period and add any units purchased during the current accounting period. Then, subtract any units that were sold during the current period.
What is the formula for acceptable range? ›
The range rule of thumb formula is the following: Subtract the smallest value in a dataset from the largest and divide the result by four to estimate the standard deviation. In other words, the StDev is roughly ¼ the range of the data.
