Opening range breakout (ORB) is one of the simplest day trading set-ups to understand. The first fifteen minutes OR the first half-hour of the trading day is the most volatile. Bears and bulls are battling it out in the stock market, trying to show you who’s going to be the boss for the day. This volatility creates a price range you can trade from. You can trade this opening range breakout. Like all breakout trading set-ups, this is a great set-up because it offers a very low-risk entry.
Our Stockmaniacs team has created this advanced Opening Range Breakout Trader scanner by which you can do trading so easily, profitably, and can save lots of time.
15 Minutes ORB Scanner
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30 Minutes ORB Scanner
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How to trade opening range breakout?
ORB is a well-known concept discovered by Toby Crabel. It is a variation of the classic N-bar breakout system. This concept is so widely talked about because it works. I will show you a new twist of the concept that is never discussed anywhere else.
What does the opening range breakout trading system do?
- It identifies the highest price and lowest price reached since open up to the Start Time and also takes into consideration the range of the previous day.
- Long on a stop at the desired percentage and short on a stop at the desired percentage obtained in #1.
- Only trade once per direction, so at most 1 long and 1 short position taken per day.
- Always exit at the end time of the day.
- When the range of previous trading sessions is above a certain threshold of the average range of the previous trading days, no trade is taken for the day.
How to Trade with Open Range Breakout Trader Wisely?
As you know that this is a very powerful strategy. And many traders follow the strategy. Some traders follow the 15 minutes open range break out, some traders 30 minutes open range break out, or some traders even the one-hour open range breakout.
And you know that once the open range is broken, the market eventually tries to move in a single direction. Most of the time you can see a single direction movement till the market ending hours after the breakout occurs.
How to Go to the Open Range Breakout Trader Page?
You can find the Open Range Breakout Trader Page from our Freebies –> Algo Trader section. There you can find a scanner like this. Here, you will get the upper and the lower range of the nifty 50 stocks. And there you will also get the buy breakout and short sell breakout levels with stop loss and target in each direction. From this page, you can get the trade levels and execute the trade on your broker’s terminal.
- Firstly, you can see that our page contains ORL levels for both 15-minutes and 30-minutes for all Nifty-50 stocks.
- Now, see the top row of the scanner, there are some blocks like symbol, high, low, buy entry price, buy stoploss, buy target, sell entry price, sell stoploss, sell target etc. The high price is the high of the opening range and the low price is the low of the opening range. You can buy or sell immediately if the stocks cross the high or low of the opening range. But here we have added some room above and below the opening range to avoid false whipsaw. Our buy and sell levels are derived after adding the room and so are unique.
How to Execute Trade in the Opening Range Breakout Strategy
- Suppose, I want to buy Reliance. I need to check the ORB Range and the buy and sell levels. Once the buy entry price is crossed I can select the Buy order. You just need to click on the buy on your broker’s terminal.
- Now, if you want to buy the stock at the market price, then click on place order. The quantity is 3 as you choose your capital to 7000. And with 7000, you can buy maximum of 3 quantity of Reliance.
- To avoid sudden spike on the price we can also put a limit buy order above the buy entry price. Similarly we can put a limit sell order below the sell entry price.
- Lastly, once your order gets executed check your execution orders in the position section.
More Information about ORB
- You can see a person who can slip and fell down even he walks inside his home safely; at the same time, another person balances his weight and walk on the rope tied between two buildings. Day Traders are like the man who walks on the rope. For every achievement, there are certain rules. Learn the Rules; never break your Own Rules. Be an achiever whatever the strategy you use. All the Best.
- More information on the ORB system or strategies has been posted on our early morning trader page.
However, the interesting part is the system is written in formula and can be used for any stock, index, commodity, or forex with proper liquidity. Trading this strategy works best after consolidation on the stocks. So you can find a stock that has gone through some consolidation and the next day its opening range breakout can trigger a one-sided move. You can find stocks with narrow range CPR or Central Pivot Range indicators and apply this strategy to them. Narrow CPR indicates the stocks are going through consolidation.