Doug introduced and explained the ORE (Opening Range Reversal) trading strategy, emphasizing its accuracy and ease of use for traders at all experience levels.
The meeting covered the step-by-step setup for implementing the strategy, including chart configuration, trend bias identification, and the specific entry and exit criteria.
Live chart examples were discussed to demonstrate the mechanics and rationale behind each step of the ORE method.
Doug encouraged questions in the comment section and promoted the free weekly "gains guide" resource for further support.
Action Items
None noted: This was an instructional presentation without explicit assignments or deadlines.
ORE Trading Strategy Overview
The ORE strategy focuses on identifying and entering trades at moments when the market reverses from an initial move in the opening range, capitalizing on common price manipulation patterns.
Requires a dual-chart setup: one intraday chart (under 1 hour, e.g., 5-minute) and a daily chart for broader trend context.
Applicable to any asset (stocks, commodities, crypto, futures).
Step-by-Step Implementation
Chart Setup
Use a sub-1-hour intraday chart (e.g., 5-minute) for trade timing and a mandatory daily chart for establishing broader trend bias.
Daily trend is identified visually and can be confirmed with a 50-period simple moving average (SMA).
Step 1: Establish Trend Bias
Determine whether bulls or bears control the daily trend by assessing price direction over past months and the asset’s position relative to the 50-SMA.
Strong trend above 50-SMA favors looking for buy (long) set-ups on intraday weakness; weak trend below 50-SMA favors sell (short) set-ups on intraday strength.
Step 2: Identify Sucker Step (Manipulation)
Early sharp price moves at the open (exceeding 20% of average daily range, as measured by ATR) are typically “sucker” moves orchestrated to induce retail traders to take the wrong side.
Calculate 20% of ATR as the manipulation threshold (e.g., $6 ATR × 20% = $1.20). Moves beyond this are considered likely to reverse.
Step 3 & 4: Entry and Exit Criteria
Entry: After the initial range move, wait for a reversal candle (e.g., green candle after a drop) and enter when the next candle exceeds the high of that reversal candle. This confirms potential end of the manipulation move.
Stop loss: Place below the low of the day for long entries (or above high for shorts).
Target: Aim for at least 50% retracement from the high to low of the manipulation move; for aggressive targets, use the full retracement.
Multiple examples on ARM stock showed repeated effectiveness; similar analysis on LULU illustrated the importance of following the daily trend bias.
Decisions
No business or operational decisions recorded: The session was educational and instructional in nature.
Open Questions / Follow-Ups
Doug welcomed questions from viewers in the comment section for further clarification on the strategy.
No unresolved technical or business issues were identified during the session.