Forgot Username or Password? The opening range breakout strategy is one of the first day trading strategies explained in detail for individual traders. InToby Crabel wrote a book called Day Trading With Short Term Price Patterns and Opening Range Breakout. This book has been out of print for years and it is rumored that Crabel would not give permission for a second printing because he was profitably managing money with the strategies. Copies are occasionally available for prices starting at several hundred dollars on Internet auction sites. The book describes very specific rules for trading several markets, rather than a general but practical overview like this article offers. Traders using the opening range breakout strategy strategy the opening range, which is the difference between the highest price and the lowest price in the first few minutes of trading. Common time frames are the first 15 minutes or the first 30 minutes of the trading day, although strategy or shorter periods can be used. If price moves significantly above or below that range, traders expect to see follow through and will place orders to enter trades near the high and low of the opening range. An example of the opening range breakout strategy can be described with a few rules: Calculate the opening range. The size of the range is added to the high and a buy order is placed at that price. Subtracting the range from the low provides the short entry point. If prices fall back to the middle of the range, then the trader would close their position with a loss. There are many possible variants of these ideas. The time frame could be changed in step 1. Strategy multiple of the range could be changed in steps 2 and 3. For example, aggressive traders might use a multiple less than 1 like 0. Stop-loss levels can be varied in step 4 and profit crabel could be added as exits in step 5. The opening range breakout strategy has been widely used by traders to profit from intraday moves. This is also an ideal trading system for day traders with full-time jobs. All of the required data is known shortly after the market opens, 15 minutes after the open in the example shown. Orders can quickly be calculated and entered with a broker so that traders can profit from trading trends without having to monitor the market all day. While they can help define support or resistance, they are also one of the few tools that project precise time targets. Foreign automakers are facing some serious headwinds. The biggest of those companies may have the most to lose. Skip to main content. Call Monday-Friday, 9 AM - 5 PM CT. Trading Systems Michael Carr January 23, A Rare Indicator Crabel Forecasts the Timing of Reversals. Technical Indicators Profitable Trading Trading June 15, Check Out Our Partner Sites. Amber Hestla Jared Levy. Trade of the Day. A Rare Indicator That Forecasts the Timing of Reversals Technical Indicators Profitable Trading Staff June 15, While they can help define support or resistance, trading are also one of the crabel tools that project precise time targets.
What every trader should know about Open Range Breakouts - PART 1
What every trader should know about Open Range Breakouts - PART 1
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