7/24/2019 Opening Range Breakout Trading Strategy

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Opening Range Breakout (ORB) is a commonly used trading system byprofessional and amateur traders alike and has the potential to deliver highaccuracy if done with optimal usage of indicators, strict rules and goodassessment of overall market mood. This system is applicable only for intradaytrading.

ORB trading has several variations practiced by traders all over the globe. ometraders trade on a significant breakout from opening range, while others trade

immediately on opening range breakout. Time window for the trades also variesfrom !" minutes to ! hours.

Over a period of time observing and trading #ndian markets, # have devised withthe below system suiting our markets. Below method is both a scalping and atrending system combined into one, hence it is possible to take the advantage of$uick moves and trending markets with multiple lots of trades.

Trading Strategy

%uite imple and straightforward. Rules in the ne&t section needs to be adheredto increase the success rates dramatically.

'ny stock creates a range in the first !" minutes of trading in a day. This iscalling Opening Range. The highs and lows of this timeframe is taken as support

and resistance.

. Buy when the stock moves above the Opening Range high.. ell when the stock moves below the Opening Range low.

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1'6 #T ' *3#7#3 0T1. #7 0O4 'R 7O++O5#-2 T# 0T1, *+'7O++O5 '++ T R4+ 7OR B40 8 ++ TR#3T+0.

General Rules Applicable for both Buy and Sell:

Opening range is defined by the high and low made in the first !" minutes.

9 min chart with 9 1' and " 1' used for making trading decisions.

ntry should be made only on close of the 9 min candle outside the openingrange.

" 1' is one of the key technical indicators used in this system for trendtrading. top loss is always kept at " 1' for riding the profits.

/olume confirmation : Breakout candle should show increase in volume.

Optional confirmation; One of the two indicators ; 1'3< or tochastics should befavorable for the trade. (5e have four indicators in implified Technical 'nalysis ;1oving 'verages, R#, 1'3

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'lways trade with lots and book 9"> as soon as you see few points

profit. econd lot will be used for taking advantage of days trend.

Rules for Buy

tock should be trading above the " 1' line before the breakout.

Buy when the 9 minutes candle closes above the opening range.

9 1' line should be above the opening range at the time of breakout.

Where to keep Stoploss

#nitial toploss : +ow of the Opening Range.

Trailing toploss ; 's the stock moves in your direction and you are in profits,book 9"> , trail the stoploss at " 1'. ' close of 9 min candle below " 1'confirms e&it.

When to book full profits

5hen the 9 min candle closes below the " 1' in the case of longs.

Rules for Sell

tock should be trading below the " 1' line before the breakdown.

ell when the 9 minute candle closes below the opening range.

9 1' line should be below the opening range at the time of breakout

Where to keep Stoploss#nitial toploss : igh of the Opening Range.Trailing toploss ; 's the stock moves in your direction and you are in profits,book 9"> , trail the stoploss at " 1'. ' close of 9 min candle above " 1'

confirms e&it.

When to book full profits

5hen the 9 min candle closes above the " 1'.igh *robability Trade etups

Below additional conditions will give high probability of success:

The Opening Range breakout is above previous day?s high for buy.

The Opening Range breakout is below previous day?s low for sell.

Trade is in the direction of higher time frame charts (9 min 8!" min).

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Overall 1arket is moving in the direction of the trade.

Opening range breakout happens after brief period of consolidation.

!portant Additional "oints

#f the opening range is too wide, better do not trade ORB, since the +s

will be very far in our system. 0ou can use other trading systems in such acase

'void Opening Range Breakout trades in case of a heavy news flow day.

( +ike #nflation, 1anufacturing, *olicy decisions etc.). 4se other tradingsystems once the market settles down after the news.

TO DO :

1. Keep Pivot points ready on Charts. Daily Pivots on 5 Min Charts, Weekly Pivots on

30 Min charts, Monthly Pivots on Daily Charts.

2. For Nifty & Bank Nifty Trade Use ORB, with Options.

3. For Intraday Trade use MACD Scanner & Tenkan Sen & Kijun sen scanner .

4. For Positional Trade Use Weekly Pivot BUY Sell & YORKER Signal.

5.