Opening range breakout (ORB) is one of the simplest day trading set-ups to understand. The first hour OR 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.
|Symbol||Open||Close||Signal||Range High||Range Low||Buy Order||Sell Order||Last Updated|
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 and free-tools 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 can get trade buttons also. From this page, you can easily trigger trades in your Zerodha trading account by using your preferred stop-loss and targets.
- Now, see the top row of the scanner, there are some blocks like capital, stop-loss, target, broker, range. You can fill the blocks as per your desire. Like, in the capital I put Rs.7000, stop loss 2%, target 4%, range 1. Currently, Zerodha is the single broker available in the scanner. Now, once you select your range, the stocks will come up as per your selected range. You can see the different range of stocks in these two pictures. The above picture is showing 1.5 range stocks while the picture below contains 1 range stocks.
- Suppose, I want to buy Reliance. So, you get BO or bracket order and Buy order. I select the Buy order. You just need to click on the buy, and your Zerodha kite screen will appear. There put your client id, password, 2FA and log in your account.
- Once you logged in, you will directly get your order over there. 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.
- In case, if you want to modify the price and quantity of the stock as per your desired price and quantity, you can go to option and click on modify.
- After choosing to modify, you can change the price and quantity as per your choice. Once your selected price matches the market price, your order will be executed. After modification, click on the update.
- Lastly, 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.