Opening Range Breakouts what works?

This is a discussion on Opening Range Breakouts what works? within the Technical Analysis forums, part of the Methods category; Opening range break outs(ORB) has been a favourite technique used by many traders. I am starting this thread so that ...

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Old Nov 12, 2005, 9:13pm   #1
Joined Sep 2004
Opening Range Breakouts what works?

Opening range break outs(ORB) has been a favourite technique used by many traders. I am starting this thread so that we can learn about this technique from the users of this forum.

Does any one here uses ORB's for their actual trading? or have used it in the past?

Why do ORB's work at all? I mean what is their foundation in the trader's psychology?


What works and what does not work in todays markets?

What was working in the past but is no longer working now ?

What has stopped working will it ever work again in the markets?

Do the ORB's work equally well in the Futures and Equity markets?


What happens when we apply filters for e.g range contraction on a previous day, is the pattern any more successful?

I watched the free portions of this presentation on ORB and found it to be useful

http://tradersstudio.com/Default.aspx?tabid=129

Has any one else watched it? Has anyone else got the full presentation and is it good?

Are there any good books or Stocks and commodities articles any one can recommend on ORB's.

I look forward to an interesting discussion and participation from the experienced users.
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Old Nov 13, 2005, 3:18am   #2
 
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There is a very good video on this subject in the Articles section of this site by
Phil Newton called "15 Minute Break-out Strategy.

http://www.trade2win.com/knowledge/a...-out-strategy/

It is the best advice on ORBs that I've seen.

All of your other questions can be answered yourself by looking at charts. It sounds though as if you're looking for absolute certainty in trading. It'll never happen. Get over it.

Paul
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Old Nov 13, 2005, 3:44am   #3
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rizwanuk started this thread Thanks for responding and thanks for sharing the link I will go through it shortly.

No I am not looking for certainity, what makes you think that?

This is a game of probabilty and we just try to maximise our edge, we know it will never be 100% but still we make efforts to maximise it.

Does any one on this boards trade ORB's?
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Old Nov 13, 2005, 5:43am   #4
 
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Going in the direction of the breakout is like 0.5 probability of being right, maybe less. It's as simple as to go in the opposite direction of the breakout, the probability of being right may be higher.

I find that when the price suddenly goes in one direction it has a tendency to move back in. Some explain breakouts as traders rushing to get out, but I thinks it could as well be explained as divergence.
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Old Nov 13, 2005, 9:48am   #5
 
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I think the ORB works well in times when the markets have a large intra-day range but the markets have had low volatility the last few years.

Might be worth having a look at the ACD method. It also seems to work best with more volatile markets but the video clips are worth watching. http://www.trade2win.com/boards/trading-systems/12695-acd-methodology.html

It is best to work out your own method, as I am sure those prepared to go through lots of charts can find something that works.
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Old Nov 13, 2005, 9:53am   #6
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riswanuk, are you only interested in opening range breakouts or pre-market gap breakouts? If it's the latter I'm happy to share my strats.
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Old Nov 13, 2005, 10:02am   #7
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rizwanuk started this thread
Quote:
Originally Posted by Over the Top
riswanuk, are you only interested in opening range breakouts or pre-market gap breakouts? If it's the latter I'm happy to share my strats.
Many thanks for your offer, I would want to keep this thread focussed to ORB's, premarket gap breakouts are very interesting as well and either you can PM me or in a few days I will start a thread to disucss those, I also have a few observations to share on Pre Market Gap breakouts.

Its just that focussed discussions are useful, do you use or have ever used ORB's?
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