The opening range volume indicator is a technical analysis tool that uses the volume of trading activity during the first few minutes of the trading day to identify potential trends for the rest of the day. 

In This Article 

• What is the Opening Range Volume? 

• How To Analyze Chart Using Opening Range Volume 

Category 

Volume 

Type 

Lagging 

What is the Opening Range Volume? 

The opening range is the range of prices for a security or index during the first few minutes of the trading day. By analyzing the volume of trades during this time, traders can get a sense of the level of interest in the security and potentially identify any early trends that may develop during the day. This information can be used to make informed trading decisions and potentially improve the chances of success. 

How To Analyze Chart Using Opening Range Volume

In order to analyze the opening range volume indicator on a chart, follow these steps:

• Identify the opening range on the chart. It is typically the first few hours of trading in the market.

• Determine the volume of trades that occurred during the opening range. You can do this by looking at the volume bars on the chart or by using a volume indicator, such as the On-Balance-Volume (OBV) indicator.

• Compare the volume during the opening range to the volume of trades that occurred during the rest of the trading day. If the volume during the opening range is significantly higher or lower than the rest of the day, it may show there is a strong trend in place or that the market is experiencing a high level of volatility.

• Look for patterns in the volume during the opening range. If the volume consistently spikes at the same time each day, this may indicate a specific news event or market catalyst driving trading activity.

• Use the volume during the opening range in conjunction with other technical analysis tools, such as chart patterns, trend lines, and moving averages, to help make informed trading decisions.