What is the Opening Range Breakout?
The Opening Range Breakout (ORB) is a high-probability momentum strategy used to capture the "trend of the day." It is based on the principle that the first few minutes of the trading session represent the most intense battle between buyers and sellers.
The Catalyst
Early morning volatility is driven by institutional orders, overnight news, and retail panic. This creates a "range" that acts as a blueprint for the rest of the day.
The Timeframe
Most traders focus on the first 5, 15, or 30 minutes. Once this period ends, the high and low of that time window become the key "triggers" for a trade.
The Objective
We wait for the price to "break out" (Long) or "break down" (Short) from this range. The goal is to ride the momentum until the trend exhausts.
Core Philosophy
"Don't predict the direction. React to the expansion."
The ORB strategy doesn't care if a stock is "overvalued" or "undervalued." It only cares about where the money is flowing at 9:35 AM or 9:45 AM. By using fixed levels, we remove emotion and trade strictly based on price action.
// QUICK CHECKLIST
- Identify the High/Low
- Wait for a Range Exit
- Set Stop at Range Mid
- Target 2:1 RR Ratio
Understanding the Chart Levels
The indicator automatically draws levels based on the first few minutes of trading. The area between the High and Low is the Range (Gray Box)—think of this as the consolidation zone before the "big move" happens.
Legend Key
Click the level names below the chart to toggle them. Hover over the price line to see the specific values.
The Gray Box Rule
Price inside the gray box is in "Discovery Mode." We only look for trades once a candle leaves this shaded area.
Breakouts vs. Breakdowns
The ORB strategy is direction-neutral. We react to whichever side the market chooses. Switch directions below to see the different setups.
Standard Breakout
Waiting for a candle to close above/below the range ensures the move has real volume behind it.
Smart Sizing
The most important number isn't your profit target—it's your Stop Loss Width.
Position Calculator
Cash at Risk
$250.00
Shares/Contracts
333
What is "Stop Width"?
It is the difference between your Entry Price and your Stop Price.
Example: If you enter a Long at $150.50 and your stop is at the OR Mid ($150.00), your Stop Width is $0.50.
Target Logic
- ✅ TP1: Exit 50% at PDH or PDL.
- ✅ TP2: Exit 25% at 2:1 Risk/Reward.
- ✅ Runner: Move stop to breakeven.
Timeframe & Market Setup
The timeframe you choose changes the range width and the reliability of the signal.
5-Minute ORB
The Standard Entry.
Best for active traders on liquid stocks. Captures the move early, but requires quick reflexes and a tolerance for "whipsaws."
15-Minute ORB
The Balanced/Institutional Entry.
Filters out the initial "morning wash." Gives institutional algos time to show their hand. Much higher win rate than the 5m.
30-Minute ORB
High Conviction Entry.
Requires the most patience. If the 30-minute range breaks, it usually signals a trend that will last the entire trading session.
The "No-Go" Condition
If the opening range is already wider than the average daily move (ATR) of the stock, the move is likely exhausted. Do not trade "Elephant Candles" at the open.