Category:OR

Opening Range. In a bear case, when the opening range is relative small and market failed to BO below the range (usually also FBO below MSR) after strong attempt, and market then reverses up, traders have to be thinking about the possibilities that market will try the other direction for a MM size of the opening range.

For e.g. on 20230324, bears tried hard with strong sell off 14-16 and 20-21 below EMA to resume the bear trend of yesterday, but the attempt failed 3 times (5, 11, 25) below LOY, bulls then got a HLMTR and eventually a MM up. This is similar to the rationale of "Initial Selloff Matters" that Al described about ORV. Similar thing happened on 20230323, bulls failed to resume the small^[1] BLTFO on the morning, bears got a successful reversal and took profit at MM of the morning rally. Other examples: 20230803.

See also ORV.