Opening Range Breakout in Detail - Intraday Trading Course
Opening Range Breakout in Detail - Intraday Trading Course
Price Action
How to Study Candlestick
Opening Range Breakout
Candlestick Analysis
Back to: Trading with Smart Money
Price Action Analysis
Advanced Price Action Analysis
Thrust Pullback and Measuring
Move Analysis
How to Trade with Smart
Money
Supply and Demand Zone
Trading
How to Day Trade with Trend
Multiple Time Frame Analysis
Head and Shoulder Pattern
How to Trade with Support and
Resistance
Advanced Candlestick Analysis Opening Range Breakout
Trendline Trading Strategy
WRB Trading Strategy In this article, I am going to discuss the Opening Range Breakout in detail. Please read our previous article where we
discussed Opening Range Trading Strategy with examples. At the end of this article, you will understand the following pointers in
Day Trading Strategies detail.
VWAP Trading Strategy
Gap Trading Strategy 1. What is the opening range?
Intraday Open High Open Low
2. What is opening range breakout?
3. Opening range breakout types
Trading Strategy 4. Breakout entry for volume and price action
PIN BAR Trading Strategy 5. After entry volume and price action
Trading with Sideways Price
Action Area What is the Opening Range (OR)?
Pullback Trading Strategy
The Opening Range is the difference between the first high and low of the day. How to find high and low? At least one candle
Intraday Breakout Trading should be completely against the initial move
Strategy
Risk Management
3 Techniques for Risk
Management in Trading
Stock Selection & Live Scanner
How to make own Day Trading
Scanner
Stock Selection for Intraday
Trading
Intraday Trading Course 2020
Intraday Trading Course
Multiple Timeframe Analysis for
Intraday Trading
VWAP Trading
Opening Range Trading
Strategy
Opening Range Breakout
RSI Trading Strategy There are several benefits to trading breakouts. For example…
BTST Momentum is with you – Trading breakouts allow you to enter your trade with momentum at your back
BTST Trading Strategy Catch big trends – If you were to trade pullbacks, sometimes it may never come. But with breakouts, you never have to
worry about missing another move in the markets
TECHNICAL ANALYSIS It gives us defined entry and exit (stop loss) points.
MASTERCLASS
Technical Analysis
Demerit Opening Range Breakout Trading
(Part – 1) 1. Buy the initial breakout when the conditions are right
Supply and Demand Trading 2. Buy the retracement to the breakout when you need confirmation
(Part – 2)
Tips:- When opening range is not clear, stay away from opening range trading market
Chart Patterns
Top 7 Chart Patterns in Trading Opening Range Breakout
Every Trader Needs to Know
How to Trade Bull Flag and Bear Note-Now onwards we will discuss only bullish breakout. Exact opposite for bear breakout
Flag Pattern
Opening Range Breakout players
How to Become a Successful
Trader 1. professional
How to Become a Successful 2. Those traders who have shorted the market will now be forced to cover their poor positions by buying as well. Short
Trader covering buy order above the opening range high
3. those traders not in the market may feel they are missing out and will be encouraged to start buying
Principle for an opening range breakout
Identify how much a stock retraces relative to how much initial move in the opening range.
Pay attention to the reaction and how stocks tend to act during this period
And the volume activity during the opening range period
Based on the above three-pointers we have divided the opening range breakout into 3 types. These are
Opening Range Breakout means price moves below well-defined support (opening range low) or above resistance (opening range
high)
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Logic
These are the directional move with smart money participation and conviction. If at the start of a trading session. An Open-Drive
is generally caused by participants who have made their market decisions before the opening bell. The market opens and moves
aggressively in one direction.
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9/6/2021 Opening Range Breakout in Detail - Intraday Trading Course
In strong trending markets, you’ll have Flat pullback (price consolidates high of the day). That usually stock move in horizontal, low
volatility trendless manner. Most of the trading is near one end of the range. A Structural Feature Sign of Strength Price holds
gains after an up move “Eating through” residual supply
OVERLAPPING BAR hugs the level. It shows his level is no longer a strong reference point, The price will move with the
current pressure. If the level is strong then the price should react immediately
retailer’s taking profit to reduce risk .market pulls back and goes sideways. Once bulls confident that the bears will fail to
reverse the trend, bulls buy again with the tighter stop loss(if find this pattern find the middle of the trend)
Price should above vwap
Price should not break opening range high
Price consolidate within a tight trading range
Volume
Initial move volume should be clearly expansion than previous day volume
We are trying to identify what the SM sentiment is for the day? If Smart Money wants to buy stock, we would see that on the open
with high volume and strong directional move.
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9/6/2021 Opening Range Breakout in Detail - Intraday Trading Course
1. Wait for the first initial move to complete. should be a strong candle
2. Volume should be clearly expansion than the previous day
3. Price consolidating at a high of the day(flat pullback)
4. High of the opening range should not break
5. Declining or lower volume on retracement candle
6. The price must be above vwap
7. Entry above opening range high
8. Stop loss below opening range low
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9/6/2021 Opening Range Breakout in Detail - Intraday Trading Course
logic
The big institutions who move and manipulate the market build up their massive trading positions in a well-defined trading range.
After they fully enter their positions, then they initiate strong and aggressive buying or selling activity to move the price. They strive
to move the price in the direction of their newly accumulated positions.
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9/6/2021 Opening Range Breakout in Detail - Intraday Trading Course
Characteristics of re-accumulation
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9/6/2021 Opening Range Breakout in Detail - Intraday Trading Course
Smart money observing supply at resistance. Means smart money observing supply coming from, long liquidation, profit-taking,
and new short selling.
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9/6/2021 Opening Range Breakout in Detail - Intraday Trading Course
After entry
breakout candle
Clean wide range candle close above the opening range high
Breakout volume
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9/6/2021 Opening Range Breakout in Detail - Intraday Trading Course
If you see high volume accompanying wide spreads up, this shows that the smart money was prepared to absorb any
selling from those locked-in traders who decided to sell In this situation, the market-makers anticipate higher prices and are
bullish.
High volume breakout should follow through
The danger signs to watch for at the breakout is the opposite price pattern. If the stock breaks out on good volume but immediately
reverses and trades below the breakout point on continued big volume it means that there is too much supply at the new high
price. This is a major warning sign. The big volume at the breakout will now represent significant resistance if the stock is below it.
This pattern of a big-volume reversal at the top of the OR usually leads to a failed breakout and a selloff.
Often the breakout will occur on light volume but as the stock climbs the volume will increase. This is also a positive sign.
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9/6/2021 Opening Range Breakout in Detail - Intraday Trading Course
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9/6/2021 Opening Range Breakout in Detail - Intraday Trading Course
Hunting the stops is a phrase that describes a situation where smart money pushes the stock to trade above (resistance) a certain
price because they expect that there is a lot of resting orders to buy the stock if it trades above that particular level. The motive for
doing this is that if the trader buys the stock to trigger an advance through the price then the flurry of stop orders will push the price
even higher, at which point the trader would sell the stock to the stop orders being executed. If a breakout is created by a large
number of stop orders being executed, the subsequent price action will usually be an immediate reversal back into the range. An
immediate reversal is therefore a warning sign that the breakout is not going to be clean!
Traders like to see a confirmation after the breakout. One more bullish candle after breakout candle. A bull break followed by a bull
break is a sign of follow-through and thus an indication of bullish enthusiasm, for as long as it lasts.
If the price up to and the volume also high and also the price remains above its opening price after the early morning
pullback, it is an excellent sign that the stock has further to go on the upside.
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9/6/2021 Opening Range Breakout in Detail - Intraday Trading Course
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9/6/2021 Opening Range Breakout in Detail - Intraday Trading Course
Please watch the following video if you want to learn and understand the Opening Range Breakout concept in a better way.
In the next article, we will discuss two more price action opening range entry. Here, in this article, I try to explain the Opening
Range Breakout in detail. I hope you enjoy this article. Please join my Telegram Channel to learn more and clear your
doubts. https://t.me/tradingwithsmartmoney.
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