Opening Range Breakout Strategy Explained
The 30 minutes before and after market opening are often very volatile. The price increases rapidly during this period. This is where the Opening Range Breakout (ORB) strategy comes in handy. This helps traders catch strong moves that happen at the beginning of the session.
The strategy begins by marking the first 15 to 30 minutes of swings after the market opens. This sets the tone for the price range session. It shows where buyers and sellers are active.
How to change ball setup
If the price breaks above the high of the opening range, traders are looking for a long entry. If the price falls below the lower level of the opening interval, a short trade becomes valid. Entries should follow clear breakouts with strong volume.
This strategy works best in high volume stocks and major cryptocurrencies. Always use a tight stop-loss close to the range level. Aim for a 2:1 reward-to-risk ratio to remain consistent. Discipline and proper risk control are important to make ORB trading efficient.