15 minute opening range breakout

By | October 31, 2009

HI All,

Following is a Trading Set up for 15 minute opening range breakout

Let the index/stock trade for the first fifteen minutes and then use the high and low of this “fifteen minute range” as support and resistance levels. A buy signal is given when price exceeds the high of the 15 minute range after an up gap. A sell signal is given when price moves below the low of the 15 minute range after a down gap. It’s a simple technique that works like a charm in many cases.

Eg. The Fall of Friday Everything Look so ROsy Asian markets up and India Markets opened gap up after tthat what happened was a history.The Chart Elaborates all the Story.

If you use this technique, though, a few caveats are in order to avoid whipsaws and other market traps. The most common whipsaw is a trading range that lasts longer than 15 minutes. If an obvious range builds in 20, 25 or even 30 minutes , use those to define your support and resistance levels. Also consider the higher noise level in the morning. A breakout that extends only a tick or two can be easily reversed and trap you in a sudden loss. So let others take the bait at these levels, while you find pullbacks and narrow range bars for trade execution.

Buy Rules :
– Stock break 15 minute opening range (Trade-Ideas alert : 15 minute opening range breakout)

Sell Rules :
– Sell the stock at Pivot Resistances
– Short the Stock if it breaks 15 Min low

Here is some suggestions of what you can do :
– Use stop loss to protect you from loosing trades.

8 thoughts on “15 minute opening range breakout

  1. Atul

    I can not understand how yo use pivot with orb ….please explain

  2. bramesh Post author

    Hi Sir,

    Apologies for delay in reply

    RSI will give whipsaws please use pivots with ORB.

    It will narrow down the whipsaws 🙂

    Rgds,
    Bramesh

  3. Saravanan

    Sir,
    Thanks for your reply regarding ORB trade.
    Today also the same type of break on downside after the 15min range, but failed to move down.
    At the time of break on lower end candle was bellow 21 EMA, but RSI at 28.52(that mean over sold) ROC at -1.001.
    Shall we avoid when RSI or ROC at lower end?
    If possible please explain with todays chart data..

    Regards,
    Saravanan

  4. Saravanan

    Sir,
    Have few doubt in ORB trade.
    With today’s chart here i ask my doubt.. pls clarify
    Today’s open range from 5622-5581.25
    @9.35 Lower range was broken at 5581, after it break we initiate a short trade, after the trade initiate nifty moved upto 5615. That mean 34 point raise from our entry. If we maintain ORB high as our stop loss its a huge 41 point. How we make our entry and s/l in day like today’s one.
    We have to look ORB range size and trade accordingly or any other rule is there while we initiate a trade. Please explain

    Regards,
    Saravanan

    http://img812.imageshack.us/i/niftyy.png/

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