PRB Strategy: Previous Range Breakout Intraday Strategy isanothervery popular and frequently used Range Breakout Intraday Trading strategy after Opening Range Breakout Strategy. PRB strategy is based on breakout of previous trading sessions trading range in any security or scrip. 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 the Previous Trading Session.
- 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
How to set Target Price & Stop Loss?
- Take Profit @ 1-1.5%
- Stop Loss @ 2 tick opposite side of range or nearest Support or Resistance whichever gives lower loss
- No trade if Risk to Reward Ratio is lower than 1:1