Opening Range & VWAP Setups

Two of the most widely watched intraday tools are the opening range and VWAP. Here is how each is calculated and how day traders build simple setups around them.

The opening range

The opening range is the high and low a stock sets in its first few minutes of trading, commonly the first 5, 15 or 30 minutes. It captures the early battle as overnight news gets priced in. Once the range is set, a move above its high or below its low shows which side is winning.

The opening range: the high and low of the first minutes, then a breakout above or below.

Unlock all of Investing School

The rest of this lesson, its chart examples and quiz are part of Investing School. Start free with Stock Market Fundamentals and the first lesson in every category.