Rajandran R Founder of Marketcalls and Co-Founder Algomojo. Full-Time Derivative Trader. Expert in Designing Trading Systems (Amibroker, Ninjatrader, Metatrader, Python, Pinescript). Trading the markets since 2006. Mentoring Traders on Trading System Designing, Market Profile, Orderflow and Trade Automation.

15 minute opening range breakout

1 min read

Intra day traders / Swing Traders often face difficulties in entering the market when there is a gap open. But the gap need not destroy your trading plan. You can do a quick analysis, adjust your trading strategy and get into a good position well after the crowd pulls the trigger on a gap play. Here is how.

Let the index/stock trade for the first fifteen minutes and then use the high and low of this "fifteen minute range" as support and resistance levels. A buy signal is given when price exceeds the high of the 15 minute range after an up gap. A sell signal is given when price moves below the low of the 15 minute range after a down gap. It's a simple technique that works like a charm in many cases.

If you use this technique, though, a few caveats are in order to avoid whipsaws and other market traps. The most common whipsaw is a trading range that lasts longer than 15 minutes. If an obvious range builds in 20, 25 or even 30 minutes , use those to define your support and resistance levels. Also consider the higher noise level in the morning. A breakout that extends only a tick or two can be easily reversed and trap you in a sudden loss. So let others take the bait at these levels, while you find pullbacks and narrow range bars for trade execution.

 

Buy Rules :
– Stock break his 15 minute opening range (Trade-Ideas alert : 15 minute opening range breakout)

Sell Rules :
– Sell the stock after 2 hours.

Here is some suggestions of what you can do :

– Use stop loss to protect you from loosing trades.
– Don't close the winning trades after 2 hours and let your profit run.
– Close position if it show a bearish pattern.
– Use a profit target to close positions.

 

Rajandran R Founder of Marketcalls and Co-Founder Algomojo. Full-Time Derivative Trader. Expert in Designing Trading Systems (Amibroker, Ninjatrader, Metatrader, Python, Pinescript). Trading the markets since 2006. Mentoring Traders on Trading System Designing, Market Profile, Orderflow and Trade Automation.

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6 Replies to “15 minute opening range breakout”

  1. Dear Sir
    How it works on nifty?
    For 15 mint orb what should be the s/l for nifty?
    What should be the target?
    Or just hold on to the nifty till 3.25.
    Your reply will surely help the novice traders like us.
    Thanking you
    Shaileshkumar

  2. Fantastic strategy… I have few small questions.
    1. Can we trade this strategy daily for overall profit ? OR Is there any particular way we identify the OI or trend ?
    2. Can we look at the NIFTY chart and apply the strategy on NIFTY Options trading for overall profit ?

  3. Traders can use 20 EMA as stop loss and trail it till you stopped out. However, don’t be greedy and better book profit near key resistance and support level. ORB works great in stocks and futures trading.

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