What is Opening Range Breakout :-
When a stock breakout its Price Range (First 15 minute), we call it Opening Range Breakout, usually first 15 minutes of Trading session is full of volatility and it gives an idea about the direction of the Market or sentiment of the Trading Session.
Key Features :-
- Opening Range shows high & low price for a given period,
- Opening Range clearly shows the sentiment & trend of the day for the most of times,
- On the day of event, significance of ORB becomes more important,
- Traders can use different candle stick patterns, technical analysis for effective use of ORB strategy,
- Volume plays a significant role in successful execution of ORB strategy,
- Previous day previous range also affects ORB strategy
- when price violates the Range, Traders can position for either Breakout Trade or Reversal Trade (mean reversion),
- High or Low will be considered as Resistance or Support (in short it will be stop loss for the Trade
- Example # 15 Feb HDFC Bank Fut. Intraday Trade :-
