This strategy is called the “Opening Range Break”
Guideline
Do not take any trades for the first 15 minutes.
Use the 2-5min time frame for entries
When the market opens wait for the top of the range and bottom of the range to be formed
Within the first 15 mins the more times the range has been confirmed the more powerful the breakout or breakdown will be.
Watch the volume increase into the breakdown of this move.
The selling pressure increases rapidly to break the bottom range.
This is confirmation.
If the price action sits under the moving averages VWAP or 20SMA this is telling you the move is even more bearish.
- This move happened today.
- I like to use next day expiry so April 27 or (Friday) April 28 using in the money strike $406 or one down below it so $405.
This is a scalp play usually in the move for 2 mins to 1 hour long.
- As soon as you take entry I use about 15%-20% stop loss just in case but when the target is 100%+
- Risk:Reward is 1:4 Comment “swing” if you are interested to learn the SWING version of this set-up.
Takeaways • Always practice a new set-up first for at least a week. This is your career so make sure you execute with confidence and is comfortable with the set-up. • If you get stopped out early in the beginning this is fine. This is practice.
Takeaways • Make sure to always set a stop loss once you enter the trade. • The stop loss is a must because if it reverses here then the move is usually equally powerful. • The more you do this set-up the better you will get.
