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Openingrangebreakout

SPY Gives 2 60 cent Trades Today on OR BreakoutSPY sold off today and gave 2 opportunities at hitting the 60 cent price target. The first one was the close of the 30 minute 8 am PST candle. The second was when price failed to close back in the OR and there was a doji on the 10:30 candle. If you buy puts on SPY, you could have easily made 20% or more on each. :-) FYI, the chart on the left shows my 2 Bollinger Band strategy. The faster BB is based on a 55 period Hull Moving Average with a 0.5 band. The longer term BB is based on a 55 period Wilder Moving Average with 1.7 and 2.0 bands.
AMEX:SPYShort
by GoldBands
SPY Hits Opening Range Extension for First time in 4 DaysFor the first time in 4 days, SPY has hit the 5 minute opening range extension of the OR High + 60 cents. This is the cyan line on my custom indicator. Will SPY continue higher? I'll be watching price action plus my custom RSI Candle indicator at the bottom. As you can see, this price move up has put the RSI High above the 70 level. The Hull Moving Average on the indicator is moving up so these factors are a great indicator of upward momentum.
AMEX:SPYLong
by GoldBands
Pax Plan 12/2/2019 - The Opening RangeThe Opening Range has been traded for over 100 years. According to CQG developers, it was originally documented around the time Dow Theory was popularized. It is STILL documented by the Chicago Mercantile Exchange in their glossary & bulletin. At The PAX Group we track the lineage through PAX, to his mentor Judd who began trading in the 70's in the currency pits of the CME, back to his peers and mentors trading the meats and grains in the 50's. Note: The true OR is defined by the High/Low of the first 30 seconds of trading, we do NOT take every wiggle out and we do not trade off charts. We trade off the DOM and we want to see sustained bids above / offers below the OR. With over 23 years of empirically developed risk reduction and position management techniques, target levels and price points, PAX navigates the days price action, takes advantage of the days range and builds positions through larger trends. At a minimum, we trade units made of thirds or quarters (3,4 or more contracts) and cover at proprietary targets that PAX releases each day before the regular trading hours (Pit) open. PAX has been called "The master of execution" by Yra Harris, one of the most well-renowned traders alive today. The OR presents opportunity every day, look at the volume spike on your own charts at 8:30am Chicago / 9:30am New York / 14:30pm London. But don't be fooled by the fact this occurs every day , this is NOT a day trading methodology. This is a real strategy, traded by real and successful traders. Here is a snippet of Pax's plan for 12/2/2019: Good Morning Traders, I was reminded this weekend of the importance of executing... I have to do my homework and work out my plan and execute it one trade at a time. Focus on the process not the profit. One trade at a time will give us a long career. ES needs price action over 3154 to target 3156-58. Price action over 3165 targets 3169-71. ES downside targets 3139-41. Price action under this level starts to show weakness. Next downside target is 3128-31. Next target is 3121-23. Price action under 3114 targets 3107-09. NQ targets 8460-65. Price action over 8480 targets 8500-05. Price action over 8520 targets 8545-50. Price action over 8580 targets 8605-10. NQ downside targets 8380-85. Price action under 8360 targets 8325-30. Price action under 8300 targets 8275-80. RTY needs price action above the 1629-31 level. This seems to be the dividing line. Above our first target is 1637-39. Price action above 1646 targets 1653-55. Price action above 1663 targets 1668-70. Next upside target is 1679-80. RTY price action under 1629 targets 1617-19. Next downside target is 1605-07. Price action 1599 targets 1591-93. Price action under 1585 targets 1578-80. We start off the first week of Dec with so many opinions. For us, as always, take it easy, keep it simple and let the price action tell us what to do. I will return to the room tomorrow. Dani and Jack will run the room today. Have a great day all, Pax Pax also covers CL, GC and 30YR every day. See the full plan here
CME_MINI:NQ1!Education
by JDAP
ORB Nr4 CANDLESTICK PRICE ACTION STRATEGYORB - Opening Range Breakout This strategy works on all markets - time frame is Day & 1H Step #1: Wait until you can spot a bar that has its daily range smaller than the previous three days The first rule requires you to have the patience until the Nr4 pattern develops on the YOUR chart. When we have a daily trading range that is narrowed than the previous trading ranges it means that the price is contracting. Based on our backtesting results we have found out that there is a high probability of a trend move after you spot this type of contraction. This is kind of a general rule because the markets do move from periods of contractions to periods of expansion. This is the reason why this short-term price pattern is so powerful. Step #2: Mark the High and the Low of the 4th day and switch to the 1 hour time frame Our trade is taken the next day after the Nr4 pattern showed up. In order to have a clear view of the short-term price action we need to switch our focus to the 1 hour time frame. Before you switch the time frames make sure you mark on your chart the high and the low of the 4th day. The short-term pattern Nr4 satisfies all the requirements for a valid setup, which mean that we can move forward and describe how to buy or sell. Step #3: How to buy or sell: Buy/sell only if the breakout of the Nr4 high/low happens during the first 5 trading hours. We use the Opening Range Breakout technique to time the market and have an effective trade entry. The ORB is even more profitable if it occurs after inside days that have a smaller trading range than the previous 3 days. Here is another strategy called simple yet profitable strategy. Our trade may not have an inside day, but nevertheless we want to buy/sell only after we break above/below the Nr4 day high/low. Also, we want to make sure the breakout happens during the first five trading hours of the next day. Trades based on the ORB – Nr4 pattern will show you a profit instantly. Now, if the trade is not showing you a profit right away then your trade becomes more vulnerable. As a general rule, if after the first trading hour your trade is not in the green, you can safely close the trade at the market. Of course, you can only do that if your stop loss hasn’t been triggered in the meantime. Now, let’s outline where to place our protective stop loss. Step #4: Place your protective Stop Loss above/below the Nr4 day high/low You can hide your protective stop loss above/below the Nr4 day high/low. Alternatively, you can also place your stop loss below the current day high/low as this will give you a better risk to reward ratio. The ORB - Nr4 pattern tends to precede strong trend day activity, so your stop loss should be rarely hit. Both of these patterns can be traded individually, but when combined they tend to produce even more powerful trades. Step #5: Take profit at the close of the first 1-hour bearish candle Our take profit strategy is fairly easy and it’s slightly modified from the original strategy highlighted in the “Day Trading with Short Term Price Patterns and Opening Range Breakout” book written by Toby Crabel. Even though the ORB pattern tends to lead to trend trading days we’re more conservative and want to quickly take profits. So as soon as the first bullish/bearish candle shows up we close the trade and enjoy our daytrade profits. Alternatively, you can keep the trade open until the end of the day if you want to extrapolate more profits from the market.
by Tradingstrategyguides
ORB Nr4 CANDLESTICK PRICE ACTION DAILY STRATEGYStep #1 How to Identify the ORB Nr4 The ORB pattern is defined as a trade taken at a fixed value of the opening range. The Opening range Breakout trade is more effective if taken after an inside day that has its daily range smaller than the previous 3 days, which is where the Nr4 stands for. You have three candles followed by another candle with a daily range narrower than the previous three days. Note #1: The 4th day doesn’t necessarily need to be an inside day, it only needs to have its daily range smaller than the previous 3 days. However, inside days tend to produce a higher success rate. The ORB Nr4 pattern can be the best candlestick patterns for intraday trading too. You simply have to apply the same rules outline in this guide on your favorite intraday chart What if we told you that, 40% of the time the first trading hour can tell you what is the high and the low of the day. Our candlestick patterns strategy incorporates this price behavior so you can better manage your risk and set your targets. Basically, you can become a proficient trader. Like with all our trading strategies we’re going to give you first the trading rules by going through an actual live trade example that uses the best candlestick patterns mentioned through this PDF guide. Step #2: Identify the best candlestick patterns and mark the high and the low of the 4th candle When you search for the ORB Nr4 candlestick chart pattern keep in mind two things: The Daily range of the 4th candle needs to be narrow and smaller than the previous 3 candles. The 4th candle price range also needs to be inside the candle number 3. The ORB Nr4 pattern in the chart above is a bullish candlestick patterns because it leads to a bullish move. Narrow daily trading ranges suggest contraction. And contraction always leads to expansion. This is kind of a general rule because the markets do move from periods of contractions to periods of expansion. This is the reason why this ORB Nr4 candlestick pattern is so powerful. Step #3: Switch to 1h TF and Buy if we break the high, Sell if we break the low of the Nr4 candle. Our trade is taken the next day after the Nr4 pattern showed up. In order to have a clear view of the short-term price action we need to switch our focus to the 1 hour time frame. Note #2: Only Buy or Sell if the breakout happens during the first 5 hours of the new trading day. We use the Opening Range Breakout technique to time the market and have an effective trade entry. Trades based on the ORB – Nr4 candlestick chart pattern will show you a profit instantly. Now, if the trade is not showing you a profit right away than your trade becomes more vulnerable. As a general rule, if after the first trading hour your trade is not in the green, you can safely close the trade at the market. Of course, you can only do that if your stop loss hasn’t been triggered in the meantime. Step #4: Place SL below NR4 day low, Step #5: Take profit using a trailing SL below each 1h candle low/high For buy trades, hide your stop loss below Nr4 day low. The ORB – Nr4 pattern tends to precede strong trend day activity, so your stop loss should be rarely hit. Our take profit strategy is fairly easy and it’s slightly modified from the original strategy highlighted in the “Day Trading with Short Term Price Patterns and Opening Range Breakout” book written by Toby Crabel. Even though the ORB nr4 pattern tends to lead to trend trading days we’re more conservative and want to quickly take profits. We would trail our SL below each 1h candle low and wait for the market to reverse to take profits.
Long
by Tradingstrategyguides