Commodities - Combined ORB and RSI strategies in MARKETS - Can anyone explain this strategy...
+ Reply to Thread

Combined ORB and RSI strategies

  1. Exclamation Combined ORB and RSI strategies

    Can anyone explain this strategy

  2. (Source from google)
    Opening Range Breakout (ORB) is a commonly used trading system by professional and amateur traders alike and has the potential to deliver good returns if done with proper discipline and money management rules. This system is applicable only for intraday trading.

    ORB trading has several variations practiced by traders all over the globe. Some traders trade on a significant breakout from opening range, while others trade immediately on opening range breakout. Time window for the trades also varies from 10 minutes to 1 hour.

    Trading Strategy

    Quite Simple and straightforward. Rules in the next section needs to be adhered to increase the success rates dramatically.

    Any stock creates a range in the first 10 to 30 minutes of trading in a day. This is calling Opening Range. The highs and lows of this timeframe is taken as support and resistance.

    1. Buy when the stock moves above the Opening Range high.
    2. Sell when the stock moves below the Opening Range low.

    General Rules – Applicable for both Buy and Sell:

    Opening range is defined by the high and low made in the first 15 minutes. You can set the duration as per your wish, it could be either first 5 mins range, 10 minutes range or 15 mins range.

    Rules for Buy

    Buy when the stock price crosses above the opening range.

    Where to keep Stoploss

    Initial Stoploss – Low of the Opening Range.

    Rules for Sell

    Sell when the stock price crosses below the opening range.

    Where to keep Stoploss

    Initial Stoploss – High of the Opening Range.

    High Probability Trade Setups

    Below additional conditions will give high probability of success:

    The Opening Range breakout is above previous day’s high for buy.

    The Opening Range breakout is below previous day’s low for sell.

    Trade is in the direction of higher time frame charts (15 min /30 min).

    Overall Market is moving in the direction of the trade.

    Opening range breakout happens after brief period of consolidation.

    Important Additional Points

    If the opening range is too wide, better do not trade ORB, since the SLs will be very far in our system. You can use other trading systems in such a case.

    Avoid Opening Range Breakout trades in case of a heavy news flow day. ( Like Inflation, Manufacturing, Policy decisions etc.). Use other trading systems once the market settles down after the news.

    Even if the above rules looks bit complicated to you, then follow just one simple rule.

    Mark the High-low range for 1st 15 mins,

    Go Long if High range is broken, with stop loss as low range.

    Go Short if low range is broken, with stop loss as high range.

  3. the above response is just on ORB trade set up. RSI is not used

+ Reply to Thread

Visitors found this page by searching for:

Tags for this Thread