I’ve traded opening range breakouts before but had mixed results.
When high volatility and volume confirm the move, they can be great for quick profits.
But false breakouts and whipsaws have burned me too many times, especially on choppy days.
Recently, I’ve found success using the average true range (ATR) to set limit orders and take profits based on the 1-hour opening range, which helps filter out noise and improves my risk management.
By giving the market time to breathe and the initial volatility to settle, I’ve found that I can determine stronger setups, such as pullbacks or trend confirmations.
