Question about the open range breakout!

[myownceo727]

Sorry for the newbie question but when trading opening gaps for the emini s&p aka /ES what time do you start looking for the the range to start forming?

is it the entire range from when the session started trading the previous day or is there a certain time traders look at?

 

[cmedaytrader]

The opening range normally refers to a set short time from the open. I forget off hand, something like the first 3o seconds or minute and a half. However, I doubt you'll find much success with it.

The gap would usually refer to the 4:15 pm close of the previous day and the 9:30 am price. Both times are EST.

 

[myownceo727]

i actually didnt mean to say opening gap I meant the opening range, why do you doubt my luck with it?

 

[BataviaTrader]

I once read that the first trading hour after opening is called 'amateur hour'. You trade it you find out quickly why that is.

 

[hgh]

basically, thousands and thousands people try to find money in this market through the last hundred years, most of them are clever, so take care of the trading~ It won't be so easy to earn something in it.

 

[Mr O]

I once read that the first trading hour after opening is called 'amateur hour'. You trade it you find out quickly why that is.

What this guy said. No need to go firing off all your ammo in the first hour. Let the market establish itself for the session and it will tell you what it wants to do.

 

[BataviaTrader]

Exactly. I believe at opening the big boys step in and clip 500 contracts for the day. I do not have the illusion I will survive with my lousy 1-2 contracts. So I sit back, watch it, and think it over.

 

[isatrader]

Mark Fishers book "The Logical Trader" is a reasonably well known method for the opening range breakout. It's called the "ACD Method". There's a few threads on BMT that talk about it. See: ACD trading By Mark Fisher - Traders Hideout

 

[HedgeFounder]

Trading

Fisher, the master opening range trader used 20mins for ES.
I personally prefer 15min and the emini Dow.