Trading the Opening Range Breakout (ORB)

Objective

• Learn how to trade the ORB.
• Gain confidence in trading the ORB.
• Learn a strategy that can generate thousands of dollars daily.
• Understand how to apply price action to the ORB strategy.

What is the ORB?

• Mapping the first 15 minutes of price action by identifying highs and lows.
• Use the first three 5-minute candles for reference.
• Rarely take trades within the first 15 minutes; wait for price action to play out.
• Allow impatient buyers/sellers to execute their orders.

Key Strategy Steps

1. Wait the First 15 Minutes:

   • Map the wick high of the first 15-minute high and the wick low of the first 15-minute low.

2. 5-Minute Candle Close Above or Below:

   • Look for a 5-minute close above the high (for upside) or below the low (for downside).
   • Helps improve win rate and confidence.

3. Use a 1-Minute Chart:

   • Provides insight into what's happening inside the 5-minute candles.
   • Helps identify precise entry points.

4. Volume Confirmation:

   • Ensure volume confirms the trend-setting candle.
   • High selling volume for downside or buying volume for upside is indicative of many market participants.

5. Avoid Chasing:

   • Do not chase upside or downside; focus on A+ entries and setups for consistent execution.

Example Trades

• Trade Example 1:

  • Set 15-minute high and low.
  • Monitor volume and candle behavior for entry.
  • Call out trade in live settings (e.g., Team Bull).

• Advanced Concept:

  • If unsure or market is choppy, wait for specific risk parameters and volume confirmation before entering.

• Inverse Strategy:

  • In cases of failing the 15-minute ORB, inverse the trade potential (e.g., retest and take a downside instead).

Additional Tips

• Keep Risk Managed: Define risk levels before taking trades.
• Multiple Time Frames: Use both 5-minute and 1-minute charts to gather more information.
• Trade Examples: Review past trades and analyze why they worked or didn’t.

Discipline and Execution

• Stay patient and disciplined for successful trade execution.
• Use the 15-minute ORB as a baseline for trend-setting and key levels throughout the trading day.

Conclusion

• The ORB strategy is powerful when executed with patience and discipline.
• Continual practice and review of the strategy can lead to increased confidence and profitability.
• Engage with resources like Team Bull and educational videos for further learning.