Opening range breakout (ORB)

What it is

The opening range is the high and low of the first part of a session, often the first 5, 15 or 30 minutes after the New York stock market opens at 09:30 New York time (usually 14:30 UK). A break and close beyond it often sets the direction for the next part of the day.

It is related to, but not the same as, the initial balance from Market Profile, which is usually the first full hour and is used to classify the type of day rather than as a breakout trigger.

How to spot it

• Mark the high and low of your chosen opening window.
• Wait for a candle to close beyond one side.

How to use it

• Enter on the close beyond the range or on the retest, stop on the other side or mid-range.
• Use a set target (1–2× the range) or trail behind structure.

Common mistakes

• Trading a range that's too wide to give a sensible risk.
• Entering on a wick through the range rather than a close.

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