Opening Range Breakout Strategy for Beginner

The opening range breakout (ORB) is a well-established trading strategy for stock day traders. This post details observations while trading the ORB on short-term time frames such as 1-minute, 5-minute, and 15-minute price charts.

What is the opening range

You'll see some of hte biggest price swings of the day after the opening bell. The opening range refers to the first 30 minutes of trading.

3 approaches to trading the opening range breakout.

1. Fixed Risk, Fixed Target 2. Fixed Risk, Trailing Risk 3. Fixed Risk, No Target

Advantages of Fixed Risk Fixed Target

This form of trade management is simple. You can use a One Cancels the Other Order (OCO) after trade opens. If the price triggers one leg of the order, the other leg gets cancelled.

Advantages of Fixed Target, Trailing Risk

It immediately protects your trade and reduces risk. But it also reduces your chances of reaching your target directly.

Advantages of Fixed Risk, No Target

This is a game-changer. It's the most effective way to trade when price movement is severe. The smaller the ORB, the greater than potential risk-reward multiplier.

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