when the price violates the opening range band traders can position for either a breakout or reversion to the mean some investors may choose to follow only a few minutes of the opening price action while others may prefer to see an hour or more before drawing a conclusion from the opening range 
example of opening range tradinginvestors and traders can monitor opening ranges using a variety of charting resources the chart below shows the opening range of the social networking service x formerly twitter several days after the company released its 2019 second quarter earnings the opening range between the dotted trendlines shows the first 25 minutes of trading activity with the stock s price printing a low at 41 08 and a high at 41 65 a breakout at 9 55 a m above the opening range and the previous day s high gives traders an indication of further upside intraday momentum and to favor long positions over short positions image by sabrina jiang investopedia 2021stop loss orders could sit below the breakout candle or beneath the opening range low depending on preferred risk tolerance traders may decide to take profits using a multiple of risk for example if using a 30 cent stop traders might set a 60 cent profit target alternatively traders may implement a trailing stop such as exiting if the price closes below a moving average to let profits run for example those who used this exit strategy got stopped out at 11 50 a m when the stock s price closed below the 10 period simple moving average sma x s stock was officially delisted on nov 8 2022 after it was taken private by elon musk 1