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Opening Range Revisited...Still Relevant?


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Opening Range Revisited...Still Relevant?

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  #1 (permalink)
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I've been using my free time this weekend to review the concept of Opening Range. I have alot of free time during the weekend these days. And I can only disinfect my house so many times! .

It's difficult to do Opening Range research and not bump into Toby Crabel. His ideas are everywhere. I know he isn't the only OR authority, but his work is pretty accessible using a search bar. . And my 'search bar' education has lead me to believe that a lot of OR concepts are from the 80's. Not that there is anything wrong with old ideas in general, but the markets have changed since then. For instance: The "pits" are gone, and programmatic trading systems are the main source of liquidity in today's markets (or illiquidity--See New/Fun Market Features ). Just these two facts alone are enough to make me skeptical of using Opening Range for today's markets.

Now that the pits are gone, isn't it more difficult to define Opening Range? You could use the old pit open time, or you could use the globex open, you could use 5m bars, 15m bars, 1h bars, or you can use x-ticks, or x-volume. I suppose you can define Opening Range any way you want, but if nobody else is doing the same thing, it's not going to work. There is no limit to the amount of Opening Range configurations. If OR was widely used, then it could be conceivable that traders would 'cluster' around a small set of Opening Range configurations...I suppose. For what it's worth, after reading a fair amount of journals on FIO, OR seems to be used sparingly among retail (assuming FIO is a representative cross section of 'retail'). And It's unclear whether OR is used among institutional programmatic trading, but from what I've read of those methods, I have doubts.

On the flip side of all that skepticism, how do you explain this Crabellian setup in Crude this past week:




I know it's only one day and I'm not really proving anything here, but my cursory review of OR has been interesting. The upper and lower boundaries seem to often function as support/resistance. I'm a bar-by-bar Brooks style P/A trader, so I don't have much interest in creating an OR system, or using OR as a trigger or anything like that. But it seems to be interesting as a visual aid, at the very least. Similar to how a golfer would toss a few blades of grass into the air to see which way the wind is blowing.

Hopefully others will share their views on Opening Range, including whether or not it should be shelved in the antique store of Dated Trading Ideas. . Also, I wasn't sure where I should stash this thread. So I figured I'd give Commodities some love.

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Can't comment on outside (your markets) but here in India OR works as S/R, very similar observation as yours. I've recently invested some time in it and read couple of threads here on it and similar concepts like that of ACD by Mark Fisher.

My impression is that you will be getting lot of false breakouts and get stopped out more than you would like, more or less unless you back test it for whatever you are applying it on and have decent results better things could be done. For avoiding this you would have to somehow give leeway to some noise area and extend your SL beyond them. One brilliant such an idea that I came across in that same ACD thread was Fat Tails noise band. You can have a look at it and maybe combine? I dunno, just throwing out an idea.

But like you said, if not enough are trading it these days you would not find much value in it like those of pivot points. I would rather avoid the complications if its just S/R and stick to what crowd is using for hat and plan around it. But that's just my preference, yours might be different.

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One thought on this: while the pits are dead, in the equities markets there is still a huge rush of orders beginning right on the dot of the New York Stock Exchange open at 9:30 ET. That makes the US RTH open important for the equity futures. But then the question is, what to do with it?

There is a period of time afterward when there is also high transaction volume, and levels reached in that period may well stay important for some time during the day, at least some days. I have no idea if there is a special opening range over a particular time period that gives a potential edge, however. Also, I have seen opening ranges being used of 5 minutes, 15 minutes and 30 minutes. In market profile lingo, there is an "initial balance" formed from the range of the first two 30-minute bars, so that's the first hour. I have heard old pit traders talking about the initial trade. So opening range periods have been used from very small up to at least an hour. That's a big range of the ranges.

Personal guess: the RTH open is important. Maybe if you discern some highs and lows closely following the opening (with "closely" being deliberately not defined too tightly), then you could perhaps put together some rules that would work out over time.

I do think that opening range ideas belong to the category of often-useful rules of thumb, and that if a trader can profit from them, then he/she should do so. I do think there is something important about the opening period loosely defined as being around the open, and probably keeping an eye on it, in connection with whatever else is going on and your other analysis, is a fairly good idea.

I know there are some more involved systems (in a non-algorithmic sense) that try to exploit the OR. Mark Fisher comes to mind ("The Logical Trader", a book on it that you see mentioned sometimes in connection with OR and that you may want to find... not one I've read, because there are so many trading books and so little point to reading them .)

So, back to my only point: the ES/YM/Etc RTH open is a big deal every day, and I think that anything built around its opening range/initial balance could work out, but I doubt that there is just one good way to utilize it, and I wouldn't get too involved with it myself. Just put a line on your chart for RTH open, and maybe some other lines around it, above and below based on what happens next, and you're probably as good as you'll get.

There's also the fact that as soon as you put a line on a chart, you start weighing and judging what happens next in relation to that line, and frankly that may actually be helpful just by itself sometimes, assuming there was something significant about the line it the first place, as there is to the open.

Just my view. I admit I've never paid much attention to it, so someone who has may have something entirely different to say.

Bob.

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Before attempting to determine the best method for defining an opening range I think it is important to ask WHY we’re identifying the OR in the first place.

I utilize OR as one of many tools which help me determine the type of day most likely to unfold (trend vs balance/range). I want to know as early on in the session as possible whether buyers and sellers are active or passive.

If the market opens and immediately drives in one direction then I don’t need an OR to determine which side of the market is active.

However, if the market puts in an impulsive move higher and then immediately drives lower (V-reversal) then I know that both sides of the market are actively participating. I would then mark off the high and low of these impulses and use these as my OR boundaries. In this example my bias would be bearish unless price exceeded the OR high.

What if price opens with no conviction in either direction and oscillates around a mid-line? I would take this to mean that both sides of the market are passive. In this scenario, exceeding the OR in either direction by 1 tick is not going to be enough for me to establish a directional bias. I would expect the range-bound conditions to persist until a clear impulsive move was made, exceeding the OR.

Every day in the financial markets is unique. To glean any valuable information from the opening range (or any other tool) I feel that the trader must be dynamic, willing to adjust to the market, and intimately aware of context.

Just my .02,
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Hey @bobwest! You had a couple of points that were interesting. The indices still have a pretty well defined RTH period and I think this creates more commonality for how OR is defined. Commodities are a different story. Also, I haven't really considered the Market Profilers and the concept of initial balance. Which creates an overlap between concepts that frame an OR systems and concepts that make a Market Profiler's system.

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Hey @bobwest! You had a couple of points that were interesting. The indices still have a pretty well defined RTH period and I think this creates more commonality for how OR is defined. Commodities are a different story. Also, I haven't really considered the Market Profilers and the concept of initial balance. Which creates an overlap between concepts that frame an OR systems and concepts that make a Market Profiler's system.

I think CL also has a pretty well defined open at 8:00 Central.

I still mark the OR on my charts for the equities and CL. For me, I find that the OR is generally about 3 to 3 1/2 minutes. I just watch the 1M and usually about that time period you will have a pretty well defined upper and lower boundary for the OR. I use those as just another S/R area and sometimes price will range within that for awhile as well.

The only OR "strategy" I have used is one taught by Lance Beggs (YourTradingCoach.com). It's not so much an OR strategy as it is an opening "move" strategy and is based on what happens just prior to the open and what happens just after the open.

In the same vein, I sometimes question the validity of Floor Pivots, since there is no Floor anymore.

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Yes I do believe the OR is still relevant because as Bob says that is where a significant chunk of volume gets traded. Ive been watching it for a while and there are definitely repeatable patterns that can be traded. For instance on the 5m using a brooks style approach at bars 15 - 18 is where I regularly find actionable signals. Also if you can extract bar info and break it down into statistical data you will find some usable information. Just write down whatever hypothetical questions you have and then answer them with numbers. Then using relative volume and size and nature of the opening swings, you can get a very good read of the market and can formulate effective strategies around that.

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I think CL also has a pretty well defined open at 8:00 Central.

I still mark the OR on my charts for the equities and CL. For me, I find that the OR is generally about 3 to 3 1/2 minutes. I just watch the 1M and usually about that time period you will have a pretty well defined upper and lower boundary for the OR. I use those as just another S/R area and sometimes price will range within that for awhile as well.

The only OR "strategy" I have used is one taught by Lance Beggs (YourTradingCoach.com). It's not so much an OR strategy as it is an opening "move" strategy and is based on what happens just prior to the open and what happens just after the open.

In the same vein, I sometimes question the validity of Floor Pivots, since there is no Floor anymore.

Hey NWT! I was looking into the 600 PST open in crude that you mentioned. Volume comes on to crude oil at random times. So a clearly defined and static OR doesn't make sense to me yet for commodities. However...I painted a bunch of OR lines using the 600 PST open...and things seemed random line-ish to me. A small sample size though. Using a 5m OR at the globex open seemed to produce somewhat consistent s/r. I haven't tried the 3.5 minute OR you mentioned. If it works though, ride that pony till she drops! .

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I use the opening in my trading everyday.
It gives context, just like VWAP does, and it determines the initial direction of my trades (short below OR, long above). I also like to trade from the opening range high (ORH) and low (ORL) especially if these confluence with other levels like floor trader pivots, previous swing highs/lows, VWAP, etc. Another powerful setup is a breakout of the OR when price has been trading inside it since the open for -say- 30 minutes or longer.
Yeah, I love the OR. It works well for me, so it's not an outdated concept. For me atleast. Unless I am outdated too

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GruttePier View Post
I use the opening in my trading everyday.
It gives context, just like VWAP does, and it determines the initial direction of my trades (short below OR, long above). I also like to trade from the opening range high (ORH) and low (ORL) especially if these confluence with other levels like floor trader pivots, previous swing highs/lows, VWAP, etc. Another powerful setup is a breakout of the OR when price has been trading inside it since the open for -say- 30 minutes or longer.
Yeah, I love the OR. It works well for me, so it's not an outdated concept. For me atleast. Unless I am outdated too

Hey @GruttePier! I've followed your journal for a while and your use of OR was part of my inspiration to start exploring the concept. For gold, I've noticed a pretty steady pattern of the 5m OR behaving as S/R. I hesitate to put things on my trading screen though, because I tend to fixate on the indicator rather than the price action. So I tend to use it as a study tool for now. Interesting chart in gold today. The blue area is the 5m OR...


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Also if you can extract bar info and break it down into statistical data you will find some usable information. Just write down whatever hypothetical questions you have and then answer them with numbers. Then using relative volume and size and nature of the opening swings, you can get a very good read of the market and can formulate effective strategies around that.

I think you nailed it @Grantx, with your line about answering my question with numbers. Ever since you've posted this I've been thinking about how to formulate an OR study. Probably overthinking it actually. Ha! I have a few simple ideas for a statistical study in mind, but have procrastinated starting one. That's hard work, man! I just need to commit to setting aside a little bit of time a week, and then be patient (and diligent) with it.

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I think you nailed it @Grantx, with your line about answering my question with numbers. Ever since you've posted this I've been thinking about how to formulate an OR study. Probably overthinking it actually. Ha! I have a few simple ideas for a statistical study in mind, but have procrastinated starting one. That's hard work, man! I just need to commit to setting aside a little bit of time a week, and then be patient (and diligent) with it.

Hey Salao its actually very easy. I will help you where I can. Let me know when you are ready to start and we can work together on this.

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web


Honestly, not too bad for S&P 500, but this is just first look.

Interesting read here
https://www.thebalance.com/opening-range-fake-breakout-strategy-for-stocks-1031461

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The OR is very relevant. But like everything in trading, nothing works all the time in all markets.

I use the Premium Lizard Trader OR tools, this provides me with overnight/session ranges, and the RTH ranges. These levels, along with yLOD, y-HOD, pivots, and y-fibs are all noticed by price. Again, the levels are not always respected by price, but more often than not you see attention.

Mpst of the time, if price makes a new low or high early in the RTH, then later the price will go to these levels again, like any previous level, price respects it. I use this for entries and exits for my scalps or a place where I scale in or out.

Often on a strong move up or down, I will see a measured move (price moves a distance equal to the OR from the top or bottom of the range) as a target for an exit. I have noticed on many occasions when price reaches the measured move level it reacts.

The Liazard Trader indicators do all this for me automatically each day. Here is a snip from a chart of ES, see how price reacts at the levels.

But the main point is, OR is just another display of what price is doing, not a magic genie.


ninja trader snip

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As with everything in trading OR is subjective, just like S&R, trend lines, ...

Everyone will be using it differently, for one trader the opening range is the first 5 minutes, for another the first 15 minutes, another one looks at the first 30 minutes and yet someone else will do something completely different.

I personally see the first 30 minutes as the opening range and the high/low from this range can be very important during the rest of the day. Yesterday is a perfect example, we tried breaking out of the OR multiple times and failed each time, market internals clearly confirmed a falls breakout 2 of the 3 times.

If these levels line up with overnight highs or lows, yesterdays session highs or lows, VWAP, trendlines, ... it makes them even stronger.



This screenshot shows the entire US session, the grey area is the fist 30 minutes of the session.

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Salao View Post
I've been using my free time this weekend to review the concept of Opening Range.

Hopefully others will share their views on Opening Range, including whether or not it should be shelved in the antique store of Dated Trading Ideas. .

I vote for keeping the Opening Range idea and I would not like to see it "shelved in the antique store of Dated Trading Ideas."

How you define the Opening Range depends a lot on what "you" see as relevant when you sit down in front of your chart(s).

Personally, I like to use an Initial Price Pivot to mark the boundaries of the Opening (Range) but that's just my preference.

The Price Pivot concept is simple, in that you're looking for a bar to close above a prior bar's high to find the Initial Pivot Low,
and you're looking for a bar to close below a prior bar's low to find the Initial Pivot High.
(The dots you see plotted along the lines indicate the bar that met those criteria.)

ZB (06-20) Initial Pivots for London and CBOT 2020-04-17_6-50-ET


The fact that these two things can't happen until the buyers or the sellers have shown enough of an interest to push the price
far enough in one direction or the other to create an initial pivot, is a dynamic that I can relate to.


CL (06-20) Initial Pivots for London and NYMEX 2020-04-17_8-02-ET


Using the Initial Pivot approach is different that using the range of a 5 minute bar or the range of the first hour of trading,

GC (06-20) Initial Pivots 2020-04-17_6-48-ET


But that's just my preference.

With a little research, you can find your own way of discerning what the "OR" means to your trading.

Good Luck,
Trade well.

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Hey Salao its actually very easy. I will help you where I can. Let me know when you are ready to start and we can work together on this.

I think I'll take you up on this Grantx!

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@dannyinhouston @TopGunNote

Thanks for ideas

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I love these kind of threads, thanks @Salao for making one and allowing me to program indicator

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These 2 links offer some interesting suggestions or variations on how to use the OR concept:

A Simple Alternative Means of Assessing Short-Term Bias & Market Strength/Weakness
A Simple Alternative Means of Assessing Short-Term Bias & Market Strength/Weakness ? Part 2

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TopGunNote View Post
Personally, I like to use an Initial Price Pivot to mark the boundaries of the Opening (Range) but that's just my preference.

The Price Pivot concept is simple, in that you're looking for a bar to close above a prior bar's high to find the Initial Pivot Low, and you're looking for a bar to close below a prior bar's low to find the Initial Pivot High.
...

The fact that these two things can't happen until the buyers or the sellers have shown enough of an interest to push the price far enough in one direction or the other to create an initial pivot, is a dynamic that I can relate to.

Thanks, @TopGunNote. If I were to use OR, this is probably how I would do it -- wait for a clear high and a clear low, early within the session so it truly reflects an "initial" assessment by traders of a significant range, and use that. Therefore you're not stuck with a relatively arbitrary time period, but can use price action to help you.

The downside is that it's more work, takes some subjective judgment, and of course there may not be a clear hi/lo pivot, just a trend. But then, there isn't an opening "range" either.

It has tended to work OK when I've tried it, but so has the fixed-period version. I'm not using either now, because I already put too much on my charts.

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bobwest View Post
Thanks, @TopGunNote. If I were to use OR, this is probably how I would do it -- wait for a clear high and a clear low, early within the session so it truly reflects an "initial" assessment by traders of a significant range, and use that. Therefore you're not stuck with a relatively arbitrary time period, but can use price action to help you.

The downside is that it's more work, takes some subjective judgment, and of course there may not be a clear hi/lo pivot, just a trend. But then, there isn't an opening "range" either.

It has tended to work OK when I've tried it, but so has the fixed-period version. I'm not using either now, because I already put too much on my charts.

Bob.

Thanks Bob,
Honestly, it's only subjective if you don't build a small piece of code to do the work for you.

ES Initial Pivots 2020-04-17_11-38-ET

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TopGunNote View Post
Honestly, it's only subjective if you don't build a small piece of code to do the work for you.

I thought about that just after I posted, but left it anyway, partly out of laziness and partly because I used to just mark them in by hand, the few times I tried it. I never used OR all that much, so that was good enough for a proof of concept, which is basically all I did with this version of it.

But if I wanted to use OR seriously, this (using the pivots) would be the way that makes the most sense to me.

Bob.

------------

Edit: I never used the projection of the initial range, the way you've put it on your chart, which is similar to the Market Profile practice of projecting the initial balance. That looks pretty interesting. I might try that one.

When one door closes, another opens.
-- Cervantes, Don Quixote
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Salao View Post
I think I'll take you up on this Grantx!

The way I used the opening range was going back over past days and printing off every RTH session in exactly the same format (example attached)so that I familiarize myself with the various daily patterns. Then I went through each chart and noted various trade opportunities. This is an important procedure because I could not move the chart around or load an indicator or see price in relation to yesterday etc.. doing it this way means you are analysing under relaxed conditions and this opens your mind in a way I cannot describe. You will start to see patterns and other nuances that you never noticed before, without trying to see them. Write down everything.

At the start of the session, dont think about the market in relation to yesterday because you will be introducing mental bias into your judgement (its going to close the gap, it wants to reach a high, it wants to make a new low, if it breaks its going to run etc...). Your first opinion should come in clean, in other words solely based on what is happening right now at market open. Just watch and observe. Once you have completed your observations you then broaden your perspective and introduce other filters such as indicators, correlated markets...whatever. This is all habit forming and you need to have the same procedure day in and day out.

Coming to the stats part of it, I had various metrics which I tried incorporating into my trading. tbh I dont rely too heavily on stats anymore but since you are asking the question, it is important that you go through the process for yourself to see if it's for you. Most importantly of all is to figure out how to do it for yourself and not listen to anyone else's opinion or statistic.

In stats there is a 4 step process.
  1. Pose the question.
  2. Collect the data
  3. Analyse the data
  4. Interpret the results

The nice thing about trade data is that unless you are going to be doing statistical comparisons, there will be no interpretation of the results. You will be getting definitive answers which are kind of like yes/no answers so we can cut out the final interpretation part.
  1. So lets start with a question: What is your question Salao? For example, you might ask: on trending days, how often does the market close at the highs (in this case lets define the highs as the upper quartile of the day range)
  2. To collect relevant data, you must pick a timeframe. If you are on the 5 minute, extract 5 minute RTH bar data going back over the past 12 months.
  3. To analyse we will use either python or Excel. You choose.
Once you have done this, let me know. The next step is to figure out the correct procedure and formulas to not only give you the answer to your first question, but to establish a framework that will allow you to be more efficient with getting the answers you want and not wasting time in excel.

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I'm a discretionary trader, and my plan calls for me to trade the open, make 2-3 trades over a 2-3 hour period and be done. Having the OR information on my chart provides a ton of context, along with previous levels.

Notice how the ES price at the bottom of the OR is equal to R1 (standard floor trader pivots) and also y-HOD? Quants LOL.

Having the RTH open, OR high and low shaded on my chart tells me visually where price is at.

The first minute after the stock market open for equities is painted coral, and the OR is blue. The dashed line is VWAP, red if falling, green is rising. The pre-market range is in grey.

I use a one hour OR.

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Grantx View Post
The way I used the opening range was going back over past days and printing off every RTH session in exactly the same format (example attached)so that I familiarize myself with the various daily patterns. Then I went through each chart and noted various trade opportunities. This is an important procedure because I could not move the chart around or load an indicator or see price in relation to yesterday etc.. doing it this way means you are analysing under relaxed conditions and this opens your mind in a way I cannot describe. You will start to see patterns and other nuances that you never noticed before, without trying to see them. Write down everything.

At the start of the session, dont think about the market in relation to yesterday because you will be introducing mental bias into your judgement (its going to close the gap, it wants to reach a high, it wants to make a new low, if it breaks its going to run etc...). Your first opinion should come in clean, in other words solely based on what is happening right now at market open. Just watch and observe. Once you have completed your observations you then broaden your perspective and introduce other filters such as indicators, correlated markets...whatever. This is all habit forming and you need to have the same procedure day in and day out.

Coming to the stats part of it, I had various metrics which I tried incorporating into my trading. tbh I dont rely too heavily on stats anymore but since you are asking the question, it is important that you go through the process for yourself to see if it's for you. Most importantly of all is to figure out how to do it for yourself and not listen to anyone else's opinion or statistic.

In stats there is a 4 step process.
  1. Pose the question.
  2. Collect the data
  3. Analyse the data
  4. Interpret the results

The nice thing about trade data is that unless you are going to be doing statistical comparisons, there will be no interpretation of the results. You will be getting definitive answers which are kind of like yes/no answers so we can cut out the final interpretation part.
  1. So lets start with a question: What is your question Salao? For example, you might ask: on trending days, how often does the market close at the highs (in this case lets define the highs as the upper quartile of the day range)
  2. To collect relevant data, you must pick a timeframe. If you are on the 5 minute, extract 5 minute RTH bar data going back over the past 12 months.
  3. To analyse we will use either python or Excel. You choose.
Once you have done this, let me know. The next step is to figure out the correct procedure and formulas to not only give you the answer to your first question, but to establish a framework that will allow you to be more efficient with getting the answers you want and not wasting time in excel.

OK down to the brass tacks! I normally trade gold, which in my view, trades a little differently than the equity indices. The main difference when I think about OR is that volume comes on at different times for gold. It seems to be a truly 24 hour market. In the equity indices, there is a rush of volume at the cash open. So it seems to me there is a clear distinction between the time period around the cash open, and other parts of the day. On its face, the same distinction probably doesn't exist with gold. But! I once did a study, a copy of an Al Brooks study but for gold instead of equities, to confirm that the gold market would put in a HOD/LOD by bar 18 on about 90% of days. It put in a HOD/LOD by bar 6 on about 50% of days. I did this study using the old pit open at 520 Pacific Time.

So I can imagine there could be something interesting to be gained from doing an analysis of an OR defined by the opening pivots, as described by @TopGunNote. As of now, I haven't thought of an interesting way to frame a study like that. So if you have any ideas let me know, @Grantx, or anyone. Also if you see anything wrong in the reasoning in the rest of my post, let me know.

Separately, I don't have any clue how to write Python. But I have some experience with Excel. I always wanted to learn Python, but I've had my hands full for a while now with work and trading. Hoping to learn it one day, especially if I am able to shed the day job ever. .

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Yeah gold marches to the beat of its own drum. Back in the day I used to momentum trade gold at news releases and did pretty well with that strategy until I didn't. There is nothing regular or routine about it so unfortunately I have nothing to offer. Good luck champ.

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web


Alright, time to put this through couple of weeks of demo.

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Quote from TopGunNote,
Personally, I like to use an Initial Price Pivot to mark the boundaries of the Opening (Range) but that's just my preference.

.....The Price Pivot concept is simple, in that you're looking for a bar to close above a prior bar's high to find the Initial Pivot Low,
and you're looking for a bar to close below a prior bar's low to find the Initial Pivot High.
(The dots you see plotted along the lines indicate the bar that met those criteria.)
.......

CL (06-20) Initial Pivots for London and NYMEX 2020-04-17_8-02-ET


Hi TopGunNote,
Thanks very much for this info ! Where would I find an NT8 indie which plots the initial pivots for London and Nymex?
regards

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I use opening range to manage my exits but do not use that for entries. If opening range is within 1st 1 hour, I put limit orders at Resistance even if i read the strong bullish nature of the demand given that it may not rally much.

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sienna View Post
Hi TopGunNote,
Thanks very much for this info ! Where would I find an NT8 indie which plots the initial pivots for London and Nymex?
regards

London session starts at 08:00 GMT (03:00 Eastern, 02:00 Central, 01:00 Pacific)
Given you're in Melbourne the London session starts at 17:00 in your time zone, (assuming your computer is set to your local timezone).

Nymex Metals start at 08:20 Eastern, and ends at 13:30 Eastern
Nymex Energy starts at 09:00 Eastern, and ends at 14:30 Eastern,

You could add two copies of the attached indicator to your "time based chart", say a 5 minute chart,
and simply set the start and end times to coincide with the appropriate times for your timezone.

For example the London session would start at 17:00 Melbourne and would end at 01:30 Melbourne time.

Alternatively you could cut the London session drawing of the Initial Pivots off when the Nymex session opens (just to reduce the clutter on your charts)

MicroGC Initial Pivots for London Open 2020-08-11_7-05-ET



Good luck with it,
Let me know if you have troubles with it.

Trade well,
John B.

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Yes I think OR is very relevant, even in today’s markets. I use the OR every day across instruments I trade. I use the RTH as the start of the session.
I totally agree with what MTZimmer1 said.
Why are you defining the OR?
What is the purpose of it in your trading?
How do you plan on using this information to help you make better trading decisions? This is key.
Like Zimmer I use this information to help me determine what type of day we may have ahead of us. Are we likely to have a trend day or a balanced day. I also base a couple of my trades off the OR provided they set-up correctly and are in alignment with my higher time-frame narrative.
I personally do not believe the OR can be limited to a set time period, such as a 5, 15 or 30 minute bar or a set number of bars. I see the OR as a dynamic range that changes every day based on market condition, structure and context. For me the OR is either:
1. The first buying swing vs the first selling swing or
2. the first selling swing vs the first buying swing
Once the OR is set I watch to determine if there is two sided action or mono directional action.
This can be extremely useful in helping traders determine the potential of a trend day vs a balanced day.
Trend days often see an open drive off the open. Trend days are generally mono directional and never come back to test the open. Whereas on a balanced day we see two sided trade, hence trading on both sides of the OR.

If you plot the OR as described above you will soon see there are obvious trades that repeat on a regular basis. Develop these and you will see just how relevant the OR can be. Well worth the exercise $$$.

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Thank you TopGunNote
Great indicator. MUCH appreciated !!!

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Opening Range Levels
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Oh, I see some updates on this thread, I was away for couple of months so I guess I missed them.

Thanks for sharing your indicator TopGunNote

I'll have a look and if its doable with my measly skills, will write one for TV. Thanks again^^

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