Opening Range
The opening range shows a security’s high and low price of a given period after the market opens. Day traders monitor a stock’s opening range because it can provide an indication of sentiment and price trend for the day.
Breakout
A breakout refers to when the price of an asset moves above a resistance area, or moves below a support area. Breakouts indicate the potential for the price to start trending in the breakout direction. For example, a breakout to the upside from a chart pattern could indicate the price will start trending higher. Breakouts that occur on high volume (relative to normal volume) show greater conviction which means the price is more likely to trend in that direction.
False Breakout
A failed break occurs when a price moves through an identified level of support or resistance but does not have enough momentum to maintain its direction. Since some traders look to establish positions when a breakout occurs, in the breakout direction, they may opt to close those trades if the breakout fails.
Failed breaks may also signal traders to enter a trade in the opposite direction of the attempted breakout. Since the breakout attempt failed, the price could head the other direction.
