How Can You Implement the Opening Range Breakout Strategy Into Trading?
The Opening Range Breakout (ORB) strategy is a popular approach among traders looking to take advantage of market volatility and potential breakouts during the initial minutes after the market opens. This article explores the ORB strategy in detail, including its application in stocks and forex, entry techniques, and how to optimise its use.
Overview of the Opening Range Breakout Trading Strategy
The ORB, or the Opening Range Breakout is a time-tested trading strategy that centres around identifying the price range established in the initial minutes of a market session. Originally devised in the 1960s by renowned trader Arthur Merrill, this strategy has retained its relevance across decades. Modern traders have adapted ORB to fit today’s fast-paced trading environments, using it to detect potential breakout opportunities early in the session.
The strategy typically focuses on the price range formed within the first 5, 15, or 30 minutes after the market opens. Traders mark the highest and lowest points reached during this period as key levels. While some rely solely on this range, others also incorporate the prior day’s closing price for additional context.
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