1 Trade + 1 Filter in ORB = More Accuracy & High Profit Factor #openrangebreakout
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Published 2024-03-02
The "open range" refers to the price range within which a security trades during the first few minutes or hours of a trading session, typically the opening hour.
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The ORB system involves identifying the high and low prices within this initial trading range. Traders then wait for the price to break out of this range, either above the high or below the low, indicating a potential trend for the rest of the trading session.
When the breakout occurs, traders often enter positions in the direction of the breakout, anticipating further price movement.
This strategy aims to capture early momentum in the market and take advantage of the initial surge in price activity.
Traders using the ORB system usually employ additional technical indicators or risk management strategies to enhance their trading decisions and mitigate potential losses.
While the Open Range Breakout (ORB) system can be effective in capturing early market momentum, it also has some drawbacks:
False Breakouts: One of the primary challenges with the ORB system is the occurrence of false breakouts. Sometimes, the price may briefly break out of the initial trading range but then quickly reverse direction, trapping traders who entered positions based on the breakout signal.
Choppy Markets: In choppy or range-bound markets, where prices fluctuate within a narrow range without establishing a clear trend, the ORB system may result in frequent false signals or whipsaws. Traders may find it difficult to distinguish genuine breakouts from noise.
Volatility: High volatility during the opening period can lead to exaggerated price movements, increasing the risk of slippage or unexpected gaps between the anticipated entry price and the actual execution price.
Overcrowded Trades: Since the ORB system is relatively popular among traders, breakouts can attract a large number of participants, leading to overcrowded trades and reduced profitability due to increased competition and potential market impact.
Overall, while the ORB system can be a valuable tool for identifying early trading opportunities, traders must be aware of its limitations and employ appropriate risk management techniques to navigate the challenges effectively.
All these drawbacks can be negated using the techniques mentioned in this video.
#openrange #ORB #openrangebreakout #trading #intraday
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All Comments (21)
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Coming to stock and option I will always be grateful and thankful to Mr Ronal’ for giving me the knowledge and helping me recover my loss from the market 💯
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Very well explained.Thanks.
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Answer - C. I have already read the book and watching it again on your youtube channel helps revise the concepts and learn more. Thanks for the nice learning videos.
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Answer:C. Thank you so much for your valuable content 🎉❤
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your teaching technique are awesome and well re-searched . Really helping me to understand intraday trading
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Great sir, the contents are most valuable. Thanks🙏
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How did I miss to notice your videos all these years?. It's amazing 👏🏻 🎉
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Thanks for your teachings...love the content ❤
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The answer is C. Looking forwards to read your book, great golden nuggets.
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Answer is C , very informative. Thanks for sharing
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Very nicely explained. Thank you for sharing knowledge
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Super Sir.. Excellent explanation.. Answer is C
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Well explained sir❤
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Sir loved your content It's Unique
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Answer is C sir. Thank you for the knowledge
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Best ever explanation on ORB strategy ever...................
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Thanks.Your channel is best for intraday trading .No noise channel. No false hope and false dream.🙏🙏🙏
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Best Video on ORB. Thank you. Answer is C
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Ans: C .Thank you very much for the valuable session
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Very well explained, kudos to you. Let me experiment with it. Would be great too if you can provide a scanner for this in chartink.
