Posted in Finance, Accounting and Economics Terms, Total Reads: 257
Definition: Opening Range
Opening Range refers to the price range from the highest price to the lowest price of a particular security during the first few minutes of the daily trading activity. These ranges are particularly important to the technical analysts and intra-day traders as they look at the trend of a security before investing in it rather than doing the fundamental analysis of the particular security.
These analysts and traders look at the price fluctuations of a stock and the volume in which it is traded during the initial few minutes rather than analyzing its price to earnings ratio or the strength of the company in the market or its market position.
The opening range can provide with the trend of the market by indicating how particular stocks will perform during the day as a whole. Some technical analysts analyze the opening range to provide information for intra-day trading.