See the daily levels of the opening range.
The opening range breakout strategy great for day traders to trade opening range by looking at key levels of support and resistance. Look for the first thirty-minute to identify the high and low that identify support and is called the opening range breakout levels. Lines are marked on the chart to identify them. So this sets the tone for the day trading the opening range. Then you have the Mid Line which is another support level of the opening range. This method is used by all major trading firms each day for trading the opening range. They have the smart money and participation by trading firms to move the price.
Then above the opening range high and lows, you have nine levels of Fibonacci Levels for the day. This is where the price action can move throughout the day. Advanced Fibonacci levels plot on the charts to give you predetermined targets to take your gains.
The first 15 to 30 minutes of the day are the most important levels to consider each day. These levels set the tone or range for the day and can be very profitable playing the breakouts above the opening range high and shorting the lows of the opening range low. The opening range is one of the most important chart patterns to learn and make trades in the futures or stock markets. Opening range levels act as a magnet to the price action.
The chart below is Crude Oil and you can see there are nine Fibonacci levels that come into play each day. These are for the upside and downside of the opening range. You will see how the price action moves off and to these levels daily. The midline is a resistance area and as the chart shows crude oil couldn’t get through that level and sold off to the 261.8% Fibonacci level. Where it reversed off the low, these levels are all known at the start of trading and are in effect for the day. The manual and videos will explain how to trade the levels. We have an automated strategy that will make the trades for you, visit this page for more info:
This is a highly accurate opening range breakout strategy method that traders use each day. It can be customized to your trading, and the manual and watch our video on how to trade opening range breakouts.
ES Trade Setup: The software draws the breakout box for you so you can clearly see the breakout levels. It also plots the Fibonacci levels above and below the breakout box. In the trade example of the ES, we have a breakout and we target the Fibonacci levels.
Trade Results: We traded three contracts with an ATM strategy, first profit target was 12 ticks, then 24 and 36 ticks. For a total of 72 ticks and a nice gain on the breakout. This could be your one-and-done trade each day. An advantage of the opening range breakout strategy is that it gives you a clear bias of price action.
The software draws the box on the chart for the high and low. The price breaks above the opening range of 68.87, price moves up over 61 and moves to the 61.8 Fibonacci level which is a good area to take gains.
Fibonacci Levels: Trade the Fibonacci Levels each day know where the price can move on powerful trading strategies.
Support & Resistance: These levels come into play each day and identify the high and low of the opening range.
Crude oil chart looking weak as it didn’t break a high. Crude oil lost support and sells off down to a lower Fibonacci level. Were trading three contracts on a minute chart and price action hit our profit target for +20 ticks.
Trade Results: Crude Oil short resulted in 20 ticks profit on three contracts. The indicator identifies the high and low and a nice gain for a short trade.
Patterns Repeat: These patterns repeat each day and are very tradeable to make gains. We give you the guidelines on how to set it up covered in the manual and videos.
Opening Range Breakout Trading Strategies in 2021
Here is a typical example of a pattern that repeats often. Price breaks the high of the range moves to the 161.8 Fibonacci Level. Consolidates for a while and moves higher to another Fibonacci level.
Trade Results: Fibonacci levels identify support and resistance levels and use them as targets to take profits. 1st profit target is 161.8 Fibonacci level, then the 261.8 Fibonacci Level. These levels are all explained in the manual and videos that come with the software.
In the chart above you have the blue solid line which is used to identify the opening range high. Long three contracts with pre-determined price targets and using an ATM strategy to trade. A tighter range so we have smaller targets. We use a minute chart and the price moves higher and profit targets are hit.
Then above and below the opening range, you have nine Fibonacci Levels that come into play each day and are customizable. Make the line colors any color you wish, and thickness. Also, for the Fibonacci levels, you can customize the levels, make them any levels you wish. With this software, you would only need to trade one hour a day playing the breakouts and shorting the breakdowns. The first 15-30 minutes of the trading day between 9:30-10 am sets the tone for the day. You will see the most price action happen during the first half hour of the trading day. So no need to trade all day master the breakouts or breakdowns each day.
In the chart above we are trading the NQ and it initially had a breakout to the upside. But it ran into resistance at the 138.2 Fibonacci line. The price then held that area for a while and then lost support at the opening range high and began to sell-off.
We go short and have predetermined profit targets that are hit on the sell-off. The price action sells down to the 100% Fibonacci level and our targets are hit and we exit the trade.
The indicator identifies the opening range for the day and these Fibonacci levels are in effect all day. From the open to the close you can trade off these levels to the upside or short to the downside. The Fibonacci levels come into play each day and are very accurate. We have an automated strategy that will make the trades for you, visit this page for more info: https://www.trading123.net/product/orb-strategy/