V.7:4 (119-120): Opening range breakout Part 5 by Toby Crabel
Product Description
Opening range breakout
Part 5
by Toby A. Crabel
A trade taken at a predetermined amount above or below the opening price of a given day is called an opening range breakout (ORB).A narrow range four pattern (NR 4) is a day with a daily range that is narrower than the previous three days' daily ranges compared individually. In my experience, trades using the ORB technique on a day following an NR 4 pattern tend to coincide with trend day activity—and, consequently, successful ORBs.
Figures 1 and 2 demonstrate an ORB on the day following the NR 4 pattern. The table in Figure 3 shows the results of testing the relationship between the NR4 pattern and trending markets with this technique. action on the day of an ORB. There were four tests per market and the only difference between them was the point of entry above or below the open. Trades were entered on a stop at the indicated level with an exit on the same day's close.
A trade taken at a predetermined amount above or below the opening price of a given day is called an opening range breakout (ORB).A narrow range four pattern (NR 4) is a day with a daily range that is narrower than the previous three days' daily ranges compared individually. In my experience, trades using the ORB technique on a day following an NR 4 pattern tend to coincide with trend day activity—and, consequently, successful ORBs.
Figures 1 and 2 demonstrate an ORB on the day following the NR 4 pattern. The table in Figure 3 shows the results of testing the relationship between the NR4 pattern and trending markets with this technique. action on the day of an ORB. There were four tests per market and the only difference between them was the point of entry above or below the open. Trades were entered on a stop at the indicated level with an exit on the same day's close.
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