Hello Friends, Welcome to StocksVibe.com. I hope, you do Intraday trading that’s why you land on this article which is meant only for the IntraDay Traders. Traders who believe in profit booking and Don’t carry anything overnight. There is common myth among public that Intraday Traders don’t exist and there is no money in Intraday Trading. It is totally wrong; If you follow proper strategy with Risk Management system, You can’t fail in IntraDay Trading. There are many Strategies used by diff.-diff. Intraday Traders. We will teach you one by one. Every Strategy has its Pros and cons, You have to manage your stop loss as well as Reward acc. To your trade. Let’s focus on topic of this Article, “ORB ( Opening Range Breakout) Strategy for Intraday Trading”.
Many of the Professional and Amateur traders use this Strategy to get good returns. One of the unique quality of this strategy is that It is applicable only for the Intraday trading. You can use this strategy for buy as well as sell of stocks. Every Intraday trader use time window acc.to its own convenience. Some of us use this strategy for small time frame and big lots of share while other of use it for a long time frame with small lots of share.
Let’s introduce you with the simplest strategy for Intraday Trading.
How to use ORB ( Opening Range Breakout) Strategy for Intraday Trading
- As its name suggests, It is based on the breakout of Opening range.
- As I use 10-15 min time frame window, So I will suggest you also to use same. Because, there are more chances of failure in 1 or 3 min time frame.
- Opening Range is known as the 5-10-15 minutes window after opening of Stock Market.
- Find out the High and Low Frame of this time window. High will be known as the resistance and low will known as the support.
When to buy/Sell in ORB ( Opening Range Breakout) Strategy for Intraday Trading
If you are thinking that stock is in Uptrend and It will break resistance price of its 15 minutes window, You can place a buy order.
If you are thinking that stock is in downtrend and It will break support price of its 15 minutes window, You can place a sell order.
Imp. Points to consider while using ORB ( Opening Range Breakout) Strategy for Intraday Trading:
- If It is result day of stock or any news is about to come which can disturb the stock trend, Avoid that stock for the day. Because, No intraday strategy works in case of news flow or Result Day.
- If Stock is opened with big Red/Green Candle, Avoid the trade bcz of large difference between Support and Resistance.
Let me teach you though an example. I’ll teach you ORB ( Opening Range Breakout) Strategy in Buy call as well as Sell call.
Buy call through ORB ( Opening Range Breakout) Strategy for Intraday Trading:
- It is 17th of December and I had done a buy call on Tata Chemical through ORB ( Opening Range Breakout) Strategy system with 5 min time-frame window;
In this case, you can notice from first 5 min window that Its lowest point was 687.06 which will be known as the support and highest point was 692.99 which will be known as the resistance. As stock is in uptrend, so we will focus on Buy call. By considering this call, you could book a profit of 10 or 15 points depend upon your risk management.
Sell call through ORB ( Opening Range Breakout) Strategy for Intraday Trading:
- On the same day, I had done sell call on Infosys through ORB ( Opening Range Breakout) Strategy system with 5 min time-frame window.
As you can see, you can notice that stock opened in negative trend and in first 5 min window, It form a highest point at 710.46 which will be known as the support and lowest point on 703.54 which will be known as the resistance. Now, you can see 10 points profit was also could booked on this call through ORB Strategy.
I hope, everything is clear to you and you can apply this strategy in your daily routine.
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