V.7:2 (47-49): Opening range breakout Part 4 by Toby Crabel

V.7:2 (47-49): Opening range breakout Part 4 by Toby Crabel
Item# \V07\C02\ORB.PDF
$3.95
Availability: In Stock

Product Description

Opening range breakout Part 4 by Toby Crabel

Opening range breakout is a trade in which entry is taken at a predetermined amount above or below the opening range. I've set this predetermined amount (the "stretch") through observation. (See Stocks & Commodities, September 1988.) To trade the opening range breakout, a buy stop is placed above the high of the opening range an amount equal to the stretch and a sell stop is placed the same amount below the low of the opening range. The first stop that is traded is your position.

An inside day is one in which the daily range is completely within the previous day's range. More specifically, an inside day's high is less than the previous day's high and the inside day's low is greater than the previous day's low.

Figures 1 and 2 demonstrate the inside day and the next day's opening range breakout technique. My hypothesis is that inside days precede trend day activity and, consequently, successful opening range breakouts. Figure 3 tabulates the results of this hypothesis in the Treasury bond, S&P 500, soybean and cattle markets.

There were four tests per market with the only difference being the points of entry above or below the open. For example, bond market tests were conducted on an entry 16 ticks above the open (open plus 16 ticks), 8 ticks above the open, 8 ticks below the open (open minus 8 ticks) and 16 ticks below the open.




FOR THOSE ORDERING ARTICLES SEPARATELY:
*Note: $2.95-$5.95 Articles are in PDF format only. No hard copy of the article(s) will be delivered. During checkout, click the "Download Now" button to immediately receive your article(s) purchase. STOCKS & COMMODITIES magazine is delivered via mail. After paying for your subscription at store.traders.com users can view the S&C Digital Edition in the subscriber's section on Traders.com.




Take Control of Your Trading.
Professional Traders' Starter Kit
All these items shown below only $299.99!
  • 5-year subscription to Technical Analysis of STOCKS & COMMODITIES, The Traders' magazine. (Shipping outside the US is extra. Washington state addresses require sales tax based on your locale.)
  • 5 year access to S&C Archive
  • 5 year access to S&C Digital Edition
  • 5-year subscription to Traders.com Advantage.
  • 5-year subscription to Working Money.
  • Free book selection.
  • Click Here to Order