Opening Range Break

[ezbentley]

Quote from simpleRT:

Opening range break is a lot more predictable in say the futures or the indices in my opinion... The market most days does a short 15-30 minute whipshaw in the morning then decides upon a direction for a couple hours or so. It decides that direction between 9:45 and 10:15 usually... If internals are trending hard out of the gate it can decide sooner.

Stocks are unpredictable and unreliable... Some of the highly liquid ones like AAPL trade more like indices.

I'm biased towards liking the bigger markets because I'm a futures trader... LoL!

A newbie question: How is the opening range defined for futures, most of which trade almost around the clock?

 

[Swan Noir]

ES (for example) trades virtually around the clock but it is RTH (regular trading hours) that make up the most dependable price action. Note the volume spike at 9:30 am EST. That's your open. Different methodologies have different ways of defining the OR but all of them use the NYSE open as a starting point.

CL kicks in at 9 am EST, GC at 8:20 but the equity indexes have the most defined open of all because the have large underlying bases. That is not to say the others are not reliable opens but it is clear that ES and the other equity based instruments leave no doubt as to when they're off!

Quote from ezbentley:

A newbie question: How is the opening range defined for futures, most of which trade almost around the clock?