ORB strategy
Just utilized ORB strategy for the first time. Seems really simple and like something that can give edge daily.
Here is ChatGPT breakdown on ORB that explains it much simpler than the TikTok’s I’ve been seeing.
“The Opening Range Breakout (ORB) strategy is a popular intraday trading method that focuses on the price range established during the first minutes of market open—typically the first 15 to 60 minutes, depending on the trader's preference.
Basic Concept:
Opening Range: The high and low of the stock/index during the opening time window (e.g., 9:30–9:45 AM).
Breakout: A trade is initiated when the price breaks above the high (long trade) or below the low (short trade) of the opening range.
How It Works:
Define your opening range window (commonly 15, 30, or 60 minutes).
After the window closes:
Go long if the price breaks above the high of the range.
Go short if it breaks below the low.
Stop loss is usually set just inside the range (opposite side).
Targets can be set at a fixed risk-reward ratio (e.g., 2:1) or based on support/resistance levels, VWAP, or ATR.
Why It Works:
The opening range often reflects institutional participation and sets the tone for the rest of the day.
Breakouts with strong volume can indicate continuation.
Tips for Success:
Avoid trading during news releases or major market events.
Combine with volume confirmation or trend indicators for better accuracy.
Some traders use filtering rules, like only taking long trades above VWAP or with broader market confirmation”