GarvThakur.com

STOCK BROKER REVIEW | INVESTING | UPCOMING IPO | ALGO TRADING | TECHNICAL ANALYSIS
Login / Sign Up

Opening Range Breakout Strategy Indicator

 

Opening Range Breakout Strategy Indicator

Monthly :- 400
Quaterly :- 900
Halfyearly :- 1500
yearly :- 2500
Lifetime :- 7800
Buy Now
The Opening Range Breakout (ORB) strategy is a popular trading strategy used in financial markets to take advantage of market volatility that can occur during the opening of a trading session. The ORB strategy involves identifying the high and low-price range of a financial instrument during the initial period of trading, typically the first 30 minutes to an hour of trading.
Traders may use these lines as potential support and resistance levels and may enter buy or sell orders if the price breaks out above or below these levels. The ORB strategy indicator can help traders to identify potential breakout opportunities and set appropriate stop-loss and take-profit levels.

There are various ways to calculate the high and low ranges for the ORB strategy indicator. One popular method is to use the high and low prices of the first candlestick of the trading session. Another method is to use the high and low prices of a fixed time period, such as the first 15 minutes or 30 minutes of trading.

The ORB strategy indicator typically plots two lines on a chart representing the high and low price ranges during the opening period of trading. Traders may use these lines as support and resistance levels for the rest of the trading session and may enter buy or sell orders if the price breaks out above or below these levels.


Two types of Opening Range Breakout Line 
Open-Close and High-Low are two types of price data used in technical analysis to analyze and make trading decisions.
There are two types of Opening Range Breakout Line
1) Open- Close
2) High- Low
  • Open–Close: - Open-Close data refers to the opening and closing prices of a financial instrument during a specific period, such as a day, week, or month. The opening price is the first traded price of the period, while the closing price is the last traded price of the period. Traders may use the difference between the opening and closing prices, also known as the price range, to identify the trend and volatility of the market during the period.
  • High-Low: - High-Low data refers to the highest and lowest prices of a financial instrument during a specific period, such as a day, week, or month. The highest price is the highest traded price of the period, while the lowest price is the lowest traded price of the period. Traders may use the difference between the high and low prices, also known as the price range, to identify the volatility and range of the market during the period. Traders may use both Open-Close and High-Low data in combination with other technical indicators to make trading decisions. The choice of data depends on the trader's preference and the specific trading strategy being used.



Features Added in Input Box



  • Entry Criteria – There are two options for Entry 1) Open Close - Open-Close entry points refer to the opening and closing prices of a financial instrument during a specific period, such as a day, week, or month Traders may use the difference between the opening and closing prices to identify potential entry points for buy or sell positions. 2) High Low- High-Low entry points refer to the highest and lowest prices of a financial instrument during a specific period, such as a day, week, or month. Traders may use the range between the high and low prices to identify potential entry points for buy or sell positions.
  • Range- Range refers to the distance between the highest and lowest prices and Open or close of a financial instrument over a given period of time. A range is usually displayed on a price chart as a horizontal line, connecting the highest and lowest price levels. Traders may use ranges to identify potential trading opportunities. For example, if a financial instrument is trading within a range and approaches a support level, traders may look for potential buy opportunities, with a view that the price may rebound from the support level.
  • Buffer- Buffer can be added as a fixed value or as a percentage of the indicator or chart element. The buffer can be helpful in avoiding false signals and improving the accuracy of technical analysis.
  • Target- Target refers to a specific price level at which a trader aims to exit a position to lock in profits. Targets are an important component of a trading strategy as they help traders to manage risk and maximize returns.
  • Option for Entry Type – Option Entry Type refers to the type of alert or signal that a trader wants to receive when a certain condition is met. There are three options for entry type in TradingView:

                   1. Both: This option will trigger an alert when either a Buy or Sell condition is met.

                   2. Buy: This option will trigger an alert when a Buy condition is met, which means that the trader should consider entering a long position.

                   3. Sell: This option will trigger an alert when a Sell condition is met, which means that the trader should consider entering a short position.

  •  Backtesting Date - Backtesting involves testing a trading strategy using historical data to evaluate its performance. Traders can choose the date range for which they want to test their strategy by specifying the "From" and "To" dates on the backtesting settings page. It is important to note that backtesting is not a guarantee of future performance and traders should use it as a tool to evaluate their strategies and make informed decisions based on historical data.
  • Session - Intraday session refers to the period of time during a trading day when financial markets are open for trading.
  • Set Alert- Alerts can be set based on a variety of conditions, including instrument type, quantity, and product type Enter All the details.


NIFTY and BANK NIFTY Future and Options: Opening Range Breakout algo trading

We are also Providing Nifty and Bank Nifty Futures and option Opening range breakout. The Opening Range Breakout (ORB) algo trading strategy can be applied to Bank Nifty and Nifty Options to enter a long or short position when the price breaks above or below the opening range, providing potential trading opportunities. NIFTY and BANK NIFTY are popular indices traded on the National Stock Exchange (NSE) of India. Future and Options (F&O) trading is a popular way of trading in these indices, providing investors with a variety of trading strategies to choose from. One such strategy is the Opening Range Breakout (ORB) strategy, which involves buying or selling an asset when its price breaks above or below its opening range.

The ORB strategy can be applied to NIFTY and BANK NIFTY F&O trading by following these steps:
1. Identify the opening range of the index: The opening range of an index is the price range in which it trades during the first few minutes after the market opens. This range can be identified by looking at the high and low prices during this period.
2. Set the entry and exit points: Once the opening range is identified, the entry point for a long trade is set at the high of the opening range, while the entry point for a short trade is set at the low of the opening range. The exit point for both trades is set at a predetermined price level, such as the previous day's high or low.
3. Place the trade: The trade can be placed once the entry and exit points are set. This can be done manually or through an algorithmic trading platform.
4. Monitor the trade: Once the trade is placed, it is important to monitor it closely to ensure that it is performing as expected. If the trade is not performing as expected, adjusting the exit point or even closing the trade early may be necessary.

Note –
This Alerts only work in our Copy Trading Software, this alert feature is only applicable within our copy trading software.
    - Our copy trading software can execute trades automatically based on the alerts you set.
    - You have to purchase our copy trading software for automatic trading through this strategy.
    - Click here to Purchase 

 

Frequently Asked Question

A proper breakout is a price movement in which an asset's price moves beyond a key level of support or resistance with high trading volume, indicating a strong market interest and potential momentum in that direction. The breakout should ideally occur on a significant time frame, such as daily or weekly, and should be supported by other technical indicators such as moving averages or trend lines. A proper breakout can be a good indication of a potential trading opportunity, but it's important for traders to use disciplined risk management techniques and thoroughly analyze the market conditions before entering a trade.
Breakouts can fail due to false breakouts, where the price breaks through a key level of support or resistance but fails to sustain the momentum, often due to lack of market participation or a shift in market sentiment.
Opening range breakout is a popular strategy used in futures trading, which involves identifying the high and low-price levels of an asset during the first few minutes of trading, and then entering a long or short position if the price breaks out above or below this range. This strategy can be used with various futures contracts, and traders must manage their risk and position sizes carefully to avoid potential losses due to market volatility.
ComBiz Services Pvt Ltd’ is a well-known IT company. ‘COMBIZ SERVICES PVT LTD’ is one of the best copy trading service providers in India.
There are two types of Opening Range Breakout Line 1) Open- Close 2) High- Low
The profitability of the opening range breakout strategy depends on multiple factors, and its success varies based on the trader's skills, market conditions, and risk management techniques. Extensive research, backtesting, and risk management are essential to implementing this strategy effectively.
Excel trading is a method of trading in which traders use Microsoft Excel spreadsheets to analyze market data and execute trades.
To calculate the open range breakout, you determine the high and low prices of an asset during the first few minutes of trading, then calculate the range by subtracting the low from the high price. The breakout level is determined by adding or subtracting the range from the high or low price, respectively, and acts as a signal to enter the market if the price moves above or below this level, depending on the direction of the trade.
The success rate of the opening range breakout strategy depends on various factors such as the market conditions, the individual trader's skill and experience, and the specific trading strategy used. While there is no guaranteed success rate, traders who use disciplined risk management techniques and have a well-defined trading plan may increase their chances of success.
Our Copy trading software is best for excel based trading.
Ranges can be helpful for traders to identify potential support and resistance levels. Support is a price level at which demand for a financial instrument is strong enough to prevent the price from falling further.
The Option for Entry Type in TradingView includes both, buy, and sell options for entering trades.
Range breaks can respect stop-loss orders if they are placed at appropriate levels that account for potential market volatility and false breakouts, but there is no guarantee that a stop-loss order will always be executed as expected due to potential slippage or gaps in the market.
A 5-minute opening range breakout is a trading strategy that involves identifying the high and low price levels of an asset during the first five minutes of the trading day, and then entering a long or short position if the price breaks out above or below this range. This strategy is based on the premise that the first few minutes of trading can be highly volatile and provide significant price movements, and traders can use this information to potentially profit from the price momentum. The 5-minute time frame is commonly used for this strategy, as it allows traders to capture quick price movements and react quickly to changes in the market.
The volume required for a breakout depends on the individual asset being traded and the specific breakout strategy used. In general, a good volume for a breakout should be significantly higher than the average trading volume for the asset, as this can indicate that there is strong market participation and interest in the asset. However, the specific threshold for "good" volume can vary depending on the trader's preferences and risk tolerance and should be determined through backtesting and analysis of the asset's historical trading data.
There are various indicators that can be used for opening range breakout strategies, such as the Opening Range Indicator, the Range Expansion Index, or simply using price action and support/resistance levels to identify breakouts. The choice of an indicator depends on the individual trader's preference and trading style.
The monthly charge is 1000 rupees.
The 7% stop-loss rule is an investment strategy that involves selling a stock or other asset if its price falls by 7% or more from the purchase price, commonly used by investors to limit potential losses in case the market moves against them.
Tradingview offers various indicators and tools for traders to use in implementing opening range breakout strategies, such as the Opening Range Indicator, Range Expansion Index, and the ability to set alerts for price movements.