This trade is executed right at market open. Usually, traders will wait for the first 15 minutes for a stock to establish is opening range. Then, when the price above the high of the opening range, traders go long.
This strategy provides an entry point but it does not provide an exit point. You can, however, sell near key daily or pre-market levels, or if momentum starts to slow down.
While a lot of traders trade this on 15 minute time frame, it can be traded on other time frames (1 min, 5 min, 30 mins, etc)
Entry
- Enter when the opening price range is broken
Stop Loss
- Stop loss can be either the break of VWAP or the low of the opening candle (whichever comes first)
Reasons2sell
- Momentum slowing down
- Price breaking the low of the previous candle
- Key technical levels (daily resistance, pre-market levels, etc)
Examples
Trading ORB on 1 minute :
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