The opening range (first 5 minutes after market open) establishes the day's initial battle lines. Breaking this range with momentum signals directional intent for the session. Works especially well on index futures and forex majors at session opens.
Indicators Used
VWAPATR
Rules
📈 Long Breakout
- Mark the high and low of the first 5-minute candle after market open
- Wait for a 5-min candle to close above the opening range high
- Price should also be above VWAP (confirms bullish session bias)
- Enter long on close of breakout candle
- Stop: below the opening range low
- Target: 2× the opening range width
📉 Short Breakout
- 5-min candle closes below the opening range low
- Price below VWAP for session bias alignment
- Enter short on close of breakout candle
- Stop: above opening range high
- Target: 2× range width measured below
🚫 Skip Setup
- Opening range is unusually small (< 0.5 ATR). Likely a false breakout ahead
- Major scheduled news release in first 30 minutes
- Price chops back and forth through range multiple times before breaking
⚙️ Configuration
- // Opening Range Config
- Range window: first 5 minutes of session
- Entry: close beyond range on 5-min timeframe
- Confirmation: VWAP alignment with breakout direction
First 5m
Range Window
2× Range
Target
9:30 EST
US Open