What does it mean by opening range?

<p id="isPasted">In financial markets, the "opening range" refers to the price fluctuation (high and low) of a security or market index during the first few minutes or hours after it officially opens for trading. It's a short-term range used in technical analysis, often a key element in the Opening Range Breakout (ORB) trading strategy.&nbsp;</p><p>Here's a more detailed explanation:</p><p>Definition:</p><p>The opening range is the difference between the highest and lowest price recorded during the initial period of a market's trading session.&nbsp;</p><p>Timeframe:</p><p>The timeframe for the opening range is typically short, often within the first 10-15 or 30 minutes of the market open, but can be adjusted based on the trader's preference or the specific market.&nbsp;</p><p>Trading Strategy:</p><p>The ORB strategy is based on the idea that the initial price action after the open can provide clues about the potential direction of the day's trading. Traders often look for breakouts (the price moving above the high or below the low of the opening range) as potential entry points for trades.&nbsp;</p><p>Importance:</p><p>The opening range is considered important because it can reflect the market's initial reaction to news, economic data, or other events that may have influenced the market before the open.&nbsp;</p><p>Application:</p><p>Opening range breakouts are often used by traders as an entry point for intraday trades, either long (buying) if the price breaks above the opening range high, or short (selling) if the price breaks below the opening range low.&nbsp;</p><p>For example, if a stock opens at $100, reaches a high of $102 within the first 15 minutes, and a low of $98 within the same timeframe, the opening range would be from $98 to $102.&nbsp;</p>