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Mastering the Opening Range Breakout Strategy

Apr 7, 2025

Lecture Notes: Trading the Opening Range Breakout (ORB) Strategy

Overview

  • Objective: Learn to trade the ORB strategy confidently.
  • Claims of making over $3,000 in a day using this strategy.
  • Focus on applying price action to the opening range breakout strategy.

What is ORB?

  • ORB stands for Opening Range Breakout.
  • Involves mapping the first 15 minutes of price action (first three 5-minute candles).
    • Identify the highs and lows.
  • Importance of waiting for the first 15 minutes to pass before trading.

Key Strategy Steps

  1. Wait the First 15 Minutes:
    • Allow market trends to establish.
    • Avoid taking trades immediately.
  2. Identify 5-Minute Candle Close:
    • Look for a 5-minute close above or below the high/low for trend entry.
    • Ensures higher win rate and risk management.
  3. Utilize the 1-Minute Chart:
    • Provides insight into 5-minute candles.
    • Helps identify entry points.
  4. Volume Confirmation:
    • Look for volume supporting trend direction.
    • High volume indicates strong market participation.

Execution Details

  • Retest Strategy:
    • Wait for a retest of the breakout.
    • Enter positions after confirmation with stops above/below key levels.
  • Avoid Chasing Moves:
    • Focus on A+ entries and setups.
    • Maintain discipline and high accuracy rate.

Example Trades

  • Real-Time Analysis:
    • Use examples from the past two weeks.
    • Showcases ORB strategies and their success.
  • Advanced Concepts:
    • Discuss different market scenarios and adjustments.
    • Importance of defining risk levels.

Additional Insights

  • Inverse ORB Strategy:
    • Failing the 15-minute ORB can signal a reversal opportunity.
  • Multiple Time Frame Analysis:
    • Use of 5-minute and 1-minute charts for comprehensive analysis.

Risk Management

  • Define risk before trades.
  • Use stops strategically to safeguard trades.
  • Ensure risk/reward metrics are met for sustainable trading.

Closing Thoughts

  • Emphasis on patience, discipline, and confidence in trading.
  • Encourages personal adaptation and practice of the ORB strategy.
  • Offers further resources and videos for deeper learning.
  • Invitation to engage with content for more advanced strategies.

Full transcript