Opening Range Breakout
Trades breakout of the 9:15-9:30 opening range on trending days. One of the most reliable intraday strategies — the opening range captures the initial supply/demand imbalance, and a breakout signals institutional commitment to a direction.
Records the high and low of the first 15 minutes (9:15-9:30). When price breaks above the high → LONG. Below the low → SHORT. Entry on the breakout candle close with a 0.1% buffer to avoid false breakouts.
Narrow ranges lead to explosive breakouts. The threshold is 1.2% (not 0.8%) to include liquid mid-caps like IRCTC, ZOMATO, NHPC which typically have 1-1.5% opening ranges.
High volume confirms institutional participation. Low volume breakouts are often fake.
Ensures enough room for profit after fees (₹250/trade) and slippage. Uses daily ATR — not 5-min — to correctly measure the stock's true daily range.
Trading with the larger trend increases probability. Counter-trend ORBs fail more often.
If range is too wide, SL is capped to limit risk. The opposite end of the range is the natural invalidation point.
Need only 40% win rate to be profitable at this RR. Gives room for the trade to develop.
ORB works best in the first hour. After 10:30, the opening range is stale and breakouts are less reliable.
Strong gap days with clear directional bias. Narrow opening ranges that compress before exploding. High pre-market volume. Sector-wide moves.
Flat/choppy days with no gap. Wide opening ranges (>1% of price). Low volume mornings. Counter-trend attempts on strong trend days.