OPEN RANGE BREAKOUT STRATEGY
PART 1
PART 2
PART 3
Opening range breakout
Welcome to our trading strategy, built on the Opening Range Breakout (ORB) using 15-minute timeframes. This simple yet powerful strategy leverages market patterns across the Asia, London, and New York sessions to identify high-probability trades with clear entry and exit points. By using pivot points, round numbers, and momentum-based breakouts, the strategy helps you trade in alignment with the market’s major players.
How does the strategy work?
The strategy starts by marking the previous day’s highest and lowest points (pivot points) as well as round numbers (e.g., 22,000), which often act as price magnets. We use color-coded sessions to make market movements easy to follow:
ASIA SESSION
Monitor consolidation and tests of pivot points to predict breakout direction.
NY SESSION
Follow the breakout direction and target larger goals.
Undgå Konsilidering
Only trade clear breakouts with momentum, and steer clear of sideways movement periods.
Pre-Session
Identify early support and resistance levels.
Breakout Retningen
Buy when the price breaks above the ORB’s highest point; sell when it breaks below the lowest point. Always confirm with small wicks and high volume to avoid fakeouts.
London Session
Wait for the ORB breakout and take positions with strong candlesticks.
Risokostyring
Set the first target at the next pivot point or round number. Take partial profits and let the rest run toward larger targets . Use a trailing stop-loss 10-15 points below/above the ORB.
DAX Trading Checklist
Before Market Opens (Preparation)
- Mark yesterday’s pivot points (highest and lowest points) and round numbers (e.g., 22,000).
- Set targets for the next key level and larger targets in the New York session.
- Plan stop-loss (50-100 points below/above ORB) and partial profit-taking.
- Color-code sessions: Asia (yellow), Pre-session (orange), London (red), New York (blue).
Asia Session (01:00-09:00, Yellow)
- Monitor consolidation and tests of yesterday’s pivot points or round numbers.
- Watch for fakeouts; avoid trades on candlesticks with large wicks.
- Mark the top and bottom of the consolidation range as breakout levels.
Pre-Session (08:00-08:59, Orange)
- Check for consolidation or breakout in the pre-session.
- Note the highest and lowest points as potential support/resistance levels.
London Session (09:00-09:15, Red)
- Wait for ORB breakout (buy above highest point, sell below lowest point).
- Confirm breakout with a strong candlestick (small wick, high volume).
- Take position: Target next pivot point/round number, stop-loss below/above ORB.
New York Session (14:00-23:00, Blue)
- Check if the London breakout direction continues.
- Aim for larger pivot point or round number.
- Take partial profit at the first pivot point, let the rest run.
- Monitor fakeouts; confirm movements with volume and small wicks.
Notes
- Trade only in the direction of the breakout (long above ORB, short below ORB).
- Round numbers often act as price magnets.
- Avoid trades during consolidation; wait for momentum.
- Backtest the strategy with more charts to improve results.
Statistics Overview
| Session | Action | Probability/Value |
|---|---|---|
| Asia | Test of yesterday’s high → Downward movement | 88 % |
| Asia | Test of yesterday’s low → Upward movement | 79 % |
| Asia | Test of key level | 73 % |
| Asia | Fakeout/sweep | 43 % |
| Asia | Test of round number | 50 % |
| Asia | Predicts breakout direction | 82 % |
| London | ORB breakout | 100 % |
| London | Upward breakout | 63 % |
| London | Downward breakout | 37 % |
| London | Fakeout after breakout | 23 % |
| London | Reach next key level | 90 % |
| London | Reach round number | 60 % |
| London | Average movement | ~215 points |
| New York | Continue London breakout | 83 % |
| New York | Reach larger key level | 63 % |
| New York | Reach round number | 43 % |
| New York | Additional movement | ~120 points |
| Overall | Reach first key level | 90 % |
| Overall | Reach larger key level | 63 % |
| Overall | Seek round number | 77 % |
| Overall | Total movement | ~335 points |
| Overall | Profit at breakout (~200 points) | 90 % |
| Overall | Profit at larger target (~300 points) | 63 % |