ORB Strategy: It’s another very popular and frequently used Range Breakout Intraday Trading strategy which is used world over by intraday traders. ORB strategy is based on breakout of first 15 minutes trading range in any security or scrip. First 15 minutes trading range is defined by High and Low prices in given duration. As soon as 5 minute candle closes above or below the HIGH and LOW of range respectively, a trade is believed to have set up in same direction.
Here is how a trade sets up:
Range: High & Low Price for first 15 minutes of trading
- Buy/Long: If a 5 minutes’ candle closes above the HIGH of range
- Sell/Short: If a 5 minutes’ candle closes below the LOW of range