Opening Range Breakout

The most common Opening Range is the first 30 minutes (9:00 AM - 9:30 AM SGT). Some traders use 15 minutes for earlier signals or 60 minutes for more reliability. The high and low during this period define the range.

The opening period captures price discovery as overnight news and orders are processed. Once this 'battle' completes, a breakout shows which side (buyers or sellers) won. The breakout often continues as late traders join the winning side.

This is a choppy/ranging day with false breakouts in both directions. Either pick one direction based on market bias, use tighter filters, or skip trading ORB that day. Multiple failed breakouts = unfavorable conditions.

Very important. Breakouts on high volume (>1.5× average) show conviction and are more likely to continue. Low volume breakouts often fail and reverse. Always check volume before entering.

Generally no. ORB is an intraday strategy. The Opening Range is only relevant for the current day. Exit by market close or use a time stop (e.g., 4:30 PM). Fresh analysis tomorrow.

Filter for ORs that are smaller than normal (e.g., OR < 50% of ADR). Narrow ranges indicate compression which often precedes expansion (strong breakouts). This filter improves win rate.

False breakouts typically have: 1) Low volume on breakout, 2) Long wick candles showing rejection, 3) Quick reversal back inside OR within 5-10 minutes, 4) Breakout against VWAP slope.

Generally no. In uptrends, focus on long ORB breakouts. In downtrends, focus on short breakouts. Counter-trend ORB trades have lower win rates. Trade with the larger trend.

Breakouts before 11:00 AM are ideal - plenty of time for the move. Breakouts before 2:00 PM are okay. Avoid late breakouts (after 2:00 PM) as there's less time and late-day reversals common.

Rank setups by quality: narrow OR + high volume + market aligned = best. Take 3-5 max per day. Diversify across sectors. Don't concentrate in correlated stocks.

When a breakout fails and price quickly returns inside OR, trapped traders fuel the reversal. The failure trade: Short failed long breakout (price below OR high after being above), target OR low. Fade trapped longs.

Track each stock's OR behavior: average OR size, breakout success rate, typical extension. Some stocks consistently extend 2× OR, others barely reach 1×. Tailor targets to historical behavior.

When today's OR is completely inside yesterday's range (OR high < yesterday high AND OR low > yesterday low). This double compression creates explosive breakout potential. Very high probability setups.

Buy calls on bullish breakout, puts on bearish breakout. Use weekly expiries for intraday moves. Defined risk. Alternatively, buy straddle at 9:30 AM if expecting big move but unsure of direction.

Trade a basket of stocks showing ORB breakouts. Long basket = all stocks breaking above OR high. Short basket = all below OR low. Can be market-neutral. Diversifies single-stock risk.