This trade is put on before some big event known beforehand like economic or FED news, earnings reports etc by placing two orders into the market before the open, one to buy and one to sell. The buy is placed above the sell so when one is filled, the other is left in place to become the stop loss.

The basis behind this range technique is to take advantage of contractions in market volatility to create ideal entry points, which act as coiled springs when the market regains its volatility and breaks out. These contractions frequently are referred to as a volatility squeeze, markets are strongly volatile but experience a day with a small trading range in anticipation of the following day's report or event.

This trade depends upon volatility contractions to execute entries and expansions to execute exits. The contracted volatility - the trading range - acts as a shield against randomly triggering on of your stop orders.