Intraday trading
How do I execute the Opening Range Breakout (ORB) strategy effectively?
By Easy Money Scanner · Educational reference · Not investment advice
The short answer
The Opening Range Breakout (ORB) strategy defines a price range from the first 5-30 minutes of trading, then looks for a break above or below that range as a directional signal.
How it works
Traders typically confirm the breakout with above-average volume and may use the opposite side of the range as a stop-loss reference point.
An example
If a stock's first 15-minute range is $20.00-$20.50, a sustained move above $20.50 with strong volume could be treated as a long entry signal.
Risk & limitations
Opening ranges are prone to false breakouts (fakeouts) during volatile openings; confirmation and risk limits are essential since early losses can be large.
Examples are hypothetical, not trade recommendations. US contract and regulatory references do not automatically apply in Canada. Rules, margin requirements and broker policies can change; confirm them with the relevant authority and your broker.