opening range breakout
In plain terms
When a stock swings widely right at the open and then finishes the day up (or down), it tends to keep going that way the next day.
How it works
A wide opening range (large first-bar high-low relative to recent) signals an information shock / volatility expansion at the open; the day's net open-to-close direction then tends to continue into the next session via attention-driven order flow. A narrow opening range carries no breakout and is suppressed.
Data dependencies
- Intraday features daily
A data feed this strategy reads, refreshed on its normal schedule.
- Daily prices
Adjusted-close OHLCV for every US-listed ticker; primary price feed.
Expected edge
A wide opening-range breakout gates next-day continuation in the day's direction (intraday momentum).
Related families
On days when a stock's price swings unusually hard intraday, the move tends to be an overreaction that partly reverses the next day.
When a stock pushes hard in the afternoon (when the big institutions trade), it tends to keep moving the same way the next day.
A stock that finishes the day strong (rising into the bell and above its average price) tends to keep rising the next day.
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