Definition
The high and low set in the first stretch of a trading session, often the first 5, 15 or 30 minutes after the open.
The story
The open is when overnight orders, reactions to news and a burst of volume all hit at once. The range price sets in those first minutes gives day traders a box to measure the rest of the session against: does price break above it, below it, or stay inside?
Why you'll see it
It's a common reference for day traders, especially on stock index futures after the 8:30 AM CT (Central Time) stock market open.
Connects to
We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms