In “Day Trading for a Living”, Andrew Aziz talks about trading opening range breakouts (ORB) on 5 minutes, preferably 15 mins but not on 1 minute as it might be too volatile.
Explaining the strategy is out of the scope of this article. You should be able to find a general ORB strategy online somewhere. Let’s see how this strategy worked out for UPWK on various timeframes.
The Catalyst And Other Info
Upwork started going up on news that they beat their profit target. Other large market cap companies also beat their price earnings but their stocks didn’t perform that well on that news. This stock seems to be the exception to the rule (as short lived as it may be).
| Float: 122m | Market Cap: 1.87b |
| Short interest: 8% | Target Price: 12 |
| Price before spike: ~10 | Current Price: 14.74 |
Maybe earnings play for large caps is dead but not for small caps. We will have to see how other earnings for small caps work out.
ORB on 1 minute
The entry is around 13.1 and exit would have been at 13.6 if we exited a few cents below vwap. . 50 cent profit. Not bad.
ORB on 5 minute
Decent profit on 5 minutes. Entry at ~13.5 and exit at 14. 50 cents profit per share. If I was watching this stock before market open. I would jump in before market open. People usually exit positions before market open because of the fear of volatility. Then they get back in as stock reveals what it wants to do.
The fact that this kept going up right before market open and went up quite a bit means, this could be a stock in play. Relative volume was ~7. Then the question is : where would I sell?I guess on the second red candle on 5 minutes as soon as it went below the low of the first red candle.
ORB on 15 minute
Profitable but we end up not capturing most of the move. Entry at : ~13.5 and exit at 13.6.
Leave a Reply