Opening Range Breakout (ORB) Strategy

The Opening Range Breakout strategy establishes a high-probability directional bias based on the first 15-30 minutes of market action. The opening range captures the initial battle between buyers and sellers, and a breakout from this range often sets the tone for the rest of the day.

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How It Works

  1. 1

    Mark the high and low of the first 15 or 30 minutes after market open

  2. 2

    Wait for a breakout above the high (long) or below the low (short)

  3. 3

    Confirm with volume spike and alignment with pre-market direction

  4. 4

    Enter on the breakout candle with stop at the opposite side of the range

  5. 5

    Target 1.5-2x the range width, or trail using 5-min candle lows/highs

Best For

First hour of tradingHigh-gap stocksNews-driven movesIndex ETFs

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Frequently Asked Questions

What is the opening range?

The opening range is the price range (high to low) established during a specific period after market open, typically the first 15 or 30 minutes. It reflects the initial supply/demand equilibrium.

What timeframe works best for ORB?

The 15-minute opening range is the most popular. The 30-minute range provides more reliable signals but fewer opportunities. 5-minute ORB is fastest but has more false breakouts.

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