Opening Range Pivots

The Opening Range time is the initial time frame of trading for a stock or commodity at the start of each new trading session. For day-traders, this range could be the first 15 or 30 minutes and for swing or position trades it is the first hour range. Once this range is identified, the first hour pivots and support/resistance levels are calculated. This range usually sets the direction for the day and acts as important levels for intra-day trading.

Trading using the Opening Range pivot produces excellent results. In stronger markets, a long trade is initiated when prices pullback to the Opening Range pivot. A target for this trade is set at the first resistance. In weaker markets, prices crossing below the Opening Range pivot could signal a trend reversal and a short trade may be initiated.

Confluence of daily pivot levels and first hour Opening Range Pivots could be significant in trading. Most days, the first hour of highs and lows clearly signal the market's strength. Trading below the pivot and the first hour lows set the market in a bearish mode. Similarly, trading above the first hour high and above the first hour pivot sets the market in a bullish mode. The advantage of using Opening Range pivots is market stability. In the first 30-60 minutes (the amateur hour) of the market open, prices go through a series of gyrations to settle on a market direction for the rest of the day. Most seasoned traders wait for prices to pick a clear market direction with the opening range (the first hour) data before start trading.

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