Research has shown that tomorrow’s price range is influenced by the relationship between the current day’s price close versus the current day’s price open. There are three possible relationships between the close today and the open today.

1. The close today is less than the open today;
2. The close today is greater than the open today;
3. The close to day is equal to the open today;

LINK To Detail:

http://stockmarketfocusandsummary.blogspot.com/2010/04/daily-range-projections.html